Advocates from the Sustainable Economies Law Center presented a proposal to the Richmond City Council on Aug. 26 that would bar for‑profit corporations and institutional investors from purchasing single‑family homes up to fourplexes in the city.

Hope Williams, legislative director for the Law Center, said the proposal would create a short list of permitted buyers — individuals, nonprofits, limited‑equity cooperatives and public entities — and would prohibit non‑listed entities such as hedge funds from future acquisitions. "Corporate speculators are not serving us, and the city has the power to stop them from treating our homes and communities like financial assets," Williams said.

Presenters cited housing market data to make the case. They said more than 1,000 single‑family homes in Richmond are now owned by corporations, that median home prices increased more than 300% between 1990 and 2020, and that rising investor ownership correlates with higher rent increases in other jurisdictions. The Law Center outlined state and federal bills that address institutional ownership and transparency but said state proposals (cited as SB 1212 and AB 1240 in the presentation) are narrow or have enforcement gaps and that a local ordinance could provide stronger, more immediate protections.

Council members asked detailed questions about the ordinance draft during an extended discussion. Topics included: legal risk of an unconstitutional taking; whether corporations could use individuals or shell LLCs to evade the ban; treatment of family trusts and multi‑member trusts; whether current owners would be grandfathered; and what enforcement mechanisms would look like. A presenter said the draft would be forward‑looking and would not force existing owners to sell; title companies or the assessor could be asked to certify buyer eligibility at the time of sale.

Councilmembers also debated the appropriate scope. Several said they support limiting large corporate investors but worried a numeric cap such as four properties could unintentionally affect extended families, trusts and small local landlords. Others said Richmond should act now to prevent large‑scale institutional purchases witnessed in other regions. Councilmembers asked the Law Center to return with a more developed draft addressing enforcement, exemptions for family property transfers and LLC ownership nuances.

No ordinance vote occurred; the council received the presentation and asked staff and the presenters to continue drafting and analysis.