Bill > AB1240

This bill aims to restrict large corporate entities from purchasing and leasing single-family residential properties in California. Specifically, the bill prohibits any business entity (defined as a corporation, partnership, LLC, or similar legal entity) that already owns more than 1,000 single-family homes from buying additional single-family residential properties with the intent to lease them out. The bill provides some exceptions, such as for nonprofit corporations and entities primarily engaged in new housing construction. If a corporate entity violates this prohibition, the California Attorney General can file a civil lawsuit, and if successful, the court would be required to impose a $100,000 penalty for each violation and mandate that the property be sold to an independent third party within one year. The bill defines a single-family residential property as a single parcel with one detached dwelling unit that has a certificate of occupancy. The legislation is designed to prevent large corporations from further consolidating residential real estate ownership and potentially limiting housing availability for individual homebuyers.

Budget and Finance, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1240