Bill > A5451

Introduced Session

This bill would prohibit certain institutional investors from placing a bid on, acquiring, or purchasing a single-family home. Specifically, the bill would prohibit an institutional investor, subject to the exceptions provided in the bill, from placing a bid on, acquiring, or purchasing, directly or indirectly, or through any combination of the institutional investor's constituent persons or entities, a single-family home in this State. The bill defines the term "institutional investor" to mean: (1) a partnership, corporation, limited liability company, or trust; (2) an affiliate, subsidiary, or holding company of a partnership, corporation, limited liability company, or trust; (3) a beneficial owner, as defined in the bill, of a partnership, corporation, limited liability company, or trust; or (4) a beneficial owner of an affiliate, subsidiary, or holding company of a partnership, corporation, limited liability company, or trust. The bill specifies that an "institutional investor" does not mean: a nonprofit corporation organized for the development and provision of affordable housing; a family trust; or a family limited liability company, as those terms are defined in the bill. The bill would not apply to certain nonprofit organizations; certain new construction of a single-family home; small institutional investors, as defined in the bill; financial institutions owning or acquiring a single-family home through foreclosure or through a secured transaction; an institutional investor acting as a condemnor; a governmental authority; a public utility; or other institutional investors allowed by the Commissioner of Community Affairs (commissioner), as specified in the bill. The bill requires all institutional investors to provide an annual report to the commissioner containing certain information required by the bill. The bill specifies that the report is to be provided on a form established by the Department of Community Affairs (department). The bill requires an institutional investor that places a bid on, acquires, or purchases, directly or indirectly, or through any combination of the institutional investor's constituent persons or entities, a single-family home in this state to alienate the single-family home within six months of acquiring the single-family home. Any profit is to be payable to the Attorney General. The bill provides that it would be an unlawful practice, pursuant to and in violation of the New Jersey consumer fraud act, for an institutional investor to place a bid on, acquire, or purchase a single-family home in violation of the bill. An institutional investor that violates the bill would also be liable to a civil penalty charged for each day, as specified in the bill, that the violation continues or has not been remedied, which is to be collected in a civil action brought by the Attorney General by a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). Additionally, the bill permits any person or entity adversely affected by a violation to file a complaint against the institutional investor in violation of the bill. The complainant would be permitted to recover certain fees and expenses incurred in proving a violation of the bill, and the amount of any actual economic benefits accruing to the violator from the violation. The bill requires the commissioner to adopt rules and regulations to implement the provisions of the bill. The bill would take effect on the first day of the sixth month next following the date of enactment, and apply to the acquisition of, and all bids placed and contracts executed for the purchase of, a single-family home, on or after the effective date of the bill, except that the commissioner would be permitted to take anticipatory action necessary to effectuate the provisions of the bill.

AI Summary

Committee Categories

Dan Hutchison (D)*,  Jessica Ramirez (D)*, 

Introduced, Referred to Assembly Housing Committee (on 03/17/2025)

Official Document