Senate committee adopts cap on private‑equity ownership of single‑family homes and refers bill to finance

Senator Bolden presented Senate File 31‑73 to limit private‑equity ownership of single‑family homes and to redirect penalties toward affordable housing programs. The committee considered a compromise A9 amendment that narrowed the bill to a forward‑looking cap: private‑equity entities would be exempt if they hold fewer than 100 single‑family homes acquired after the effective date; entities already holding more than that would not be required to divest. The amendment included exceptions for family entities, land trusts, new construction and corporations primarily engaged in housing development.

Senator Bolden cited Minneapolis Fed data and other studies documenting concentration of investor ownership in some neighborhoods and said the bill is intended to "level the playing field" for prospective homebuyers. The amendment gives enforcement authority to the attorney general, including injunctive relief and civil penalties (attorney general enforcement and civil penalties were discussed in committee), and requires a 90‑day notice period before enforcement action.

Members asked about the definition of private‑equity company, real estate investment trusts and whether limited liability companies or family entities would be affected; counsel and the sponsor said the statutory text exempts family entities and REITs and that the cap is intended to capture large investor entities without penalizing small, closely held owners.

The committee adopted the A9 amendment and recommended the bill be referred to the Finance Committee for budgetary and implementation review.