Bill > SF3173

This bill, titled "Prohibit private equity company ownership of single-family homes," aims to prevent private equity companies from owning single-family homes in Minnesota, with the goal of increasing housing affordability and availability for individuals and families. A "private equity company" is defined broadly to include various investment entities that buy and manage companies or assets for profit, but it specifically excludes government entities, land trusts, certain non-profits focused on affordable housing, corporations primarily engaged in housing development, mortgage holders who acquired homes through foreclosure, and "family entities," which are defined as groups of related individuals whose financial transactions are solely between themselves. The bill defines a "single-family home" as a property with one to four dwelling units, with exceptions for licensed assisted living facilities and certain licensed residential support providers. The core provision prohibits private equity companies from directly or indirectly owning single-family homes, though it clarifies that individuals can still own their "homestead," which is a property classified for tax purposes as a primary residence. Violators face a civil penalty of $100,000 per violation, and the Attorney General is empowered to enforce this law, with a 90-day notice period required before legal action. Any penalties collected will be deposited into a state account dedicated to workforce and affordable homeownership development. This legislation is set to take effect on August 1, 2026, and will apply to any ownership interests acquired on or after that date.

Housing and Urban Affairs, Justice

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3173&ssn=0&y=2025