SB 1424

Abstract

Prohibited acquisition and ownership of single-family homes; restrictions; civil penalty. Restricts any partnership, corporation, or real estate investment trust that manages funds pooled from investors and has $50 million or more in net value or assets under management on any day during a taxable year from acquiring any interest in single-family homes, as defined in the bill, in the Commonwealth and requires registration with the Secretary of the Commonwealth by September 1, 2026, for any such business that acquired such interest prior to July 1, 2026. The bill also requires any such business to divest at least 10 percent of such interest per year over a course of 10 years whereby no such business shall own any interest in single-family homes on and after July 1, 2036. The bill requires the Secretary of the Commonwealth to report annually by December 1 on the registrations and any penalties assessed for failure to register or divest ownership interests and to submit such report to the Governor and the General Assembly. The bill also requires all real property tax bills to contain notice of such prohibited business ownership restrictions and registration requirements. The bill has a delayed effective date of July 1, 2026.

A BILL to amend and reenact §§ 55-507 and 58.1-3912 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 2.2-408.1 and by adding in Chapter 5.1 of Title 55.1 a section numbered 55.1-510, relating to prohibited acquisition and ownership of single-family homes; restrictions; civil penalty; report.