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REFERENCE TITLE: single-family homes; institutional investors |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2325 |
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Introduced by Representative Kupper
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AN ACT
amending title 44, Arizona Revised Statutes, by adding chapter 42; relating to real property purchases.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, Arizona Revised Statutes, is amended by adding chapter 42, to read:
CHAPTER 42
Institutional Investor SINGLE-FAMILY home PURCHASES
ARTICLE 1. GENERAL PROVISIONS
44-8041. Definitions
In this chapter, unless the context otherwise requires:
1. "Bulk Purchase" means the acquisition of two or more single-family homes in a single transaction or in multiple transactions within a rolling twelve-month period by the same entity.
2. "Homebuilder" means an entity whose primary business is the construction of new single-family homes that are offered for sale to individual buyers and are not for long-term rental purposes.
3. "Institutional Investor" means any corporation, limited liability company, partnership, limited partnership, real estate investment trust, trust or other similar entity that owns or manages ten or more single-family homes in this state, without regard to whether the institutional investor is established, registered, incorporated or located outside of this state.
4. "Single-Family Home" means a residential structure that is intended for occupancy by one family, such as a detached house.
44-8042. Single-family homes; institutional investors; compliance; exemptions
A. An Institutional Investor may not:
1. Own more than fifty single-family homes in this state.
2. submit a bid or otherwise offer to purchase a single-family home within the first sixty days after the single-family home is listed or otherwise publicly offered for sale.
3. Acquire any single-family homes in a bulk purchase.
B. An institutional investor that exceeds the limits PRESCRIBED by this section on the effective date of this section shall not make new single-family home acquisitions and may voluntarily sell holdings until the INSTITUTIONAL investor comes into compliance with this section.
C. This chapter does not apply to:
1. A NONPROFIT ORGANIZATION that is focused on providing affordable housing.
2. A government HOUSING agency.
3. A community land trust.
4. A person or entity that owns fewer than fifty single-family homes in this state.
5. A pension fund or other fiduciary entity with assets of less than $5,000,000.
6. A homebuilder.
44-8043. Reporting requirements; Arizona department of housing; confidentiality
A. On or before March 15 of each year, each institutional investor shall file with the Arizona department of housing a DISCLOSURE that identifies for the preceding calendar year:
1. All single-family homes the institutional investor owned during the year.
2. All single-family homes the institutional investor purchased and sold during the year.
3. the institutional investor's compliance with title 33, chapter 10.
B. All reports filed pursuant to this section are confidential, except that the Arizona department of housing may be aggregated for use for policy purposes.
44-8044. Enforcement; attorney general; county attorney; city attorney; notice; affirmative defense
A. The attorney general shall enforce this chapter, except that if the attorney general declines to enforce this chapter in any particular matter, the county attorney and city or town attorney for the county and city or town in which the single-FAMILY home is located may enforce this chapter. Enforcement may include any of the following:
1. INVESTIGATING potential violations of this chapter.
2. APPLYING for injunctive relief when appropriate.
3. enforcing any other provisions of law.
B. Before taking any enforcement action under subsection A, paragraph 2 or 3 of this section, the attorney general, county attorney or city or town attorney, as appropriate, shall provide the institutional investor with notice and an opportunity for a hearing.
c. good faith compliance is a defense to an alleged violation of this chapter.
Sec. 2. Applicability
Title 44, chapter 42, Arizona Revised Statutes, as added by this act, applies to real estate transactions of institutional investors that occur after the effective date of this act.
Sec. 3. Severability
If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
Sec. 4. Short title
Title 44, chapter 42, Arizona Revised Statutes, as added by this act, may be cited as the "Own Something and Be Happy Act".