Committee hears bill to limit institutional purchases of single‑family homes

Senators on the Washington State Senate Housing Committee heard public testimony Feb. 5 on Senate Bill 5,496, a measure that would prohibit certain investment entities from buying additional single‑family residential properties in Washington once they hold an interest in more than 25 such homes, with limited exemptions and a civil penalty enforceable by the state Attorney General under the Consumer Protection Act.

Bill Fosbury, staff to the committee, summarized the proposal and a proposed substitute that adds a limited exemption for entities that acquire a property through foreclosure when the entity is already servicing a recorded loan on that property. "It prohibits an investment entity like a REIT or a business entity that has an interest in more than 25 single family residential properties from purchasing, acquiring, or otherwise obtaining an interest in another single family residential…