Bill > HB1732

This bill addresses the housing crisis in Washington state by limiting home purchases by large business and investment entities. Specifically, the bill prohibits business entities with interests in more than 25 single-family residential properties from acquiring additional properties, and completely bars investment entities (like real estate investment trusts or investor-funded funds) from purchasing single-family homes. The bill defines "single-family residential property" as detached or semi-detached buildings, including those with accessory dwelling units, and row homes or townhomes that are structurally independent. Some exceptions exist for nonprofit organizations, entities making necessary building code modifications, those planning to increase residential units within five years, and new property construction. Violations of these restrictions will result in civil penalties up to $100,000 per violation, with the violator required to sell the property to an independent third party within one year. The legislature's intent is to preserve housing availability for residents and families, noting that investor purchases increased by 46 percent between 2018 and 2021, with investors currently owning over seven percent of the housing supply. The bill also requires the Department of Commerce to submit a report by June 2026 with recommendations to further disincentivize business and investment entities from owning single-family residential properties.

Housing and Urban Affairs

https://app.leg.wa.gov/billsummary?BillNumber=1732&Year=2025&Initiative=false