Sen. Bolden’s bill to bar private‑equity purchases of single‑family homes advances after tenant and realtor testimony
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Summary
The Senate committee moved Senate File 3173, as amended, to the Judiciary Committee after testimony from tenants and the Minnesota Realtors Association. The bill would ban private‑equity ownership of 1–4‑unit single‑family homes acquired after Aug. 1, 2026, with AG enforcement and civil penalties redirected to an affordable homeownership program.
Sen. Sandra Bolden presented Senate File 3173 and the Housing and Homelessness Prevention Committee voted to recommend the bill, as amended, to the Judiciary Committee. The bill would prohibit private‑equity companies from directly or indirectly owning single‑family homes of one to four units acquired after Aug. 1, 2026, while exempting small "mom and pop" LLCs, new builds and group homes. The attorney general would have enforcement authority, including injunctive relief and civil penalties; the bill author described civil penalties up to $25,000 plus additional penalties up to $100,000 per violation, with proceeds directed to the affordable and workforce homeownership program.
"This bill prohibits private equity companies from having a direct or indirect ownership in a single family home between 1 or 4 units, which are acquired after 08/01/2026," Sen. Bolden told the committee, saying the measure is one piece of a broader effort to restore opportunity to would‑be homebuyers.
Two tenants gave personal testimony about living in investor‑owned properties. Rachel Ruby Jones described repeated habitability and safety failures in a Minneapolis single‑family rental and said her calls to a centralized management line produced delayed or dismissive responses. "When maintenance is deferred, cost and risks are shifted onto tenants," Jones said, urging the committee to "consider the human impact behind these ownership practices and pass the bill."
Minnesota Realtors Association Senior Vice President Paul Eger said his organization supports the goal of increased homeownership but warned that the bill’s definition of "private equity company" could sweep up small or local owners. He suggested exploring incentive‑based alternatives—such as capital‑gains exemptions or tax credits to encourage sales to owner‑occupants—and continuing efforts to increase housing supply.
Committee members from both parties agreed the issue of investor purchasing merits action but expressed concern about unintended consequences in smaller markets and recommended narrower drafting. Several senators urged adding a monetary or structural threshold to target large institutional investors rather than individual local buyers.
After discussion and closing comments from Sen. Bolden, the committee chair put the motion to recommend the measure to Judiciary. "Senator Bolden moves that Senate File 3173 as amended be recommended to pass and re‑referred to the committee on Judiciary," the chair said; the motion was approved by voice vote and the bill was referred to Judiciary.
What’s next: The measure will go to the Judiciary Committee for further refinement of definitions, thresholds and enforcement language. Sponsors said they plan to continue working with counsel to ensure the bill targets large institutional investors and preserves legitimate small owner activity.
