Commission defers proposed limit on investor purchases of single-family homes for 60-day rewrite and stakeholder input

The Knox County Commission voted on May 18 to defer for 60 days a proposed ordinance that would prohibit business entities from purchasing more than 100 single-family homes in the county primarily for rental purposes.

Proponents said the proposal aims to guard affordable ownership opportunities by limiting large-scale investor accumulation of housing stock. Opponents and several commissioners urged more drafting and stakeholder work, saying the draft's definitions could unintentionally sweep up local small landlords or fail to reach large corporate investment vehicles because of corporate structures.

Commissioner Jay and others raised questions about enforcement, how ‘‘person' and affiliate' are defined, and whether real estate investment trusts or private equity funds might evade the restriction. Commissioner Thompson said he favored the policy intent but asked for a workshop with the property assessor's office and other county staff to work through tax-class and deed-recording impacts.

The commission's vote to postpone (substitute motion) passed unanimously with a recorded vote to delay action for 60 days and schedule stakeholder sessions.

What happens next: County staff and sponsors will schedule technical workshops with the county property assessor, local realtors, housing advocates and legal staff to refine definitions, exemptions and enforcement mechanics before the ordinance returns to the commission.

Quote: "We want to protect our homegrown folks," said the measure's sponsor, noting the intent is to prevent large out-of-area funds from bulk-buying smaller neighborhoods while preserving pathways for local owners and affordable housing providers.