Committee debates ban on hedge funds, private equity buying single-family homes; no committee recommendation

Senate Bill 77, a sponsor-led measure to prohibit hedge funds, private equity firms and other large corporate buyers from purchasing single-family homes in New Mexico, drew extended testimony and questions on May 20 but did not receive a committee recommendation.

Sponsor Senator Pope described the bill as an attempt to preserve access to single-family homeownership for families rather than allow institutional investors to purchase large numbers of homes and hold them as rental portfolios. He framed the bill as a preventive step, saying New Mexico should avoid problems seen in other states where institutional buyers acquired significant shares of single-family housing.

Testimony in favor came from advocacy groups including Meredith Machen (American Association of University Women and National Organization for Women). In opposition, the New Mexico Association of Realtors and multiple brokers and property managers—represented by Brent Moore, Josh Price and Tigo Venturi—argued the bill would reduce market liquidity, harm small local landlords and raise constitutional questions about restricting sales. Opponents also challenged some data points used in fiscal or policy analyses and said the bill lacked clear definitions and enforcement mechanisms.

Committee members pressed for specifics: how the bill would treat in-state small LLCs, whether existing owners would be grandfathered, and whether the proposal is constitutionally defensible. Several senators suggested narrower options, such as targeting out-of-state institutional owners, imposing caps on holdings, or adding enforcement language and clearer definitions. Senator Sedillo Lopez and others urged further study, including data on the scale and location of institutional ownership in New Mexico.

A motion to give the bill a do-pass recommendation was called; after roll-call discussion the chair said the committee did not have a recommendation to move it forward and suggested the sponsor work on amendments and consider a memorial or interim study and to consult with judiciary and title companies about enforcement mechanisms.

Because the committee did not advance the measure, no formal committee outcome for passage was recorded. Committee members asked the sponsor to refine definitions (hedge fund, private equity, corporation), consider exemptions for small local investors and work with stakeholders on enforceability before bringing a revised bill back.