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REFERENCE TITLE: single-family residences; corporate buyer restrictions |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2706 |
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Introduced by Representative De Los Santos
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AN ACT
amending title 44, Arizona Revised Statutes, by adding chapter 14; amending title 44, chapter 15.1, article 1, arizona revised statutes, by adding section 44-5102; relating to REAL ESTATE.
(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 14, to read:
CHAPTER 14
SINGLE-FAMILY RESIDENCE PURCHASES
ARTICLE 1. GENERAL PROVISIONS
44-4001. Definitions
In this chapter, unless the context otherwise requires:
1. "Commission" means the corporation commission.
2. "Corporation":
(a) means a corporation that is organized pursuant to title 10.
(b) Does not include a housing authority as defined in section 36-1401.
3. "Limited liability company" means a limited liability company that is organized by filing articles of organization with the commission pursuant to title 29.
4. "Single-family residence":
(a) Means a structure that is maintained and used as a single detached dwelling unit.
(b) Does not include a dwelling unit that shares one or more walls with another dwelling unit.
44-4002. Corporations; limited liability companies; affiliates; single-family residence purchases; registration; limits; exceptions; civil penalty; rules; fees; attorney general
A. a corporation or a limited liability company or an affiliate of a corporation or a LIMITED liability company shall register with the Securities Division of the commission before purchasing a single-family residence, condominium or townhome located in this State. the registration must include the name under which the corporation or limited liability company or the AFFILIATE of the corporation or LIMITED liability company conducts business.
B. The commission may charge a fee for the registration in an amount to be determined by the commission.
C. The commission shall issue a certificate of registration to each corporation or each limited liability company or an affiliate of a corporation or a limited liability company that registers pursuant to this section.
D. The registration requirement does not apply to any of the following:
1. A corporation or a limited liability company or an affiliate of a corporation or a limited liability company that owns fewer than ten single-family residences, condominiums or townhomes located in this State.
2. A gOVERNMENTAL entity. For the purposes of this paragraph, "governmental entity" means this state or any county, city, town or other political subdivision of this state.
3. Any nonprofit group that is RECOGNIZED by the United States internal revenue service under section 501(c)(3) of the internal revenue code.
4. A lAND TRUST.
5. A gROUP HOME. For the purposes of this paragraph, "Group home" means a home that is certified pursuant to title 36, chapter 7.1, article 4.
6. An eMPLOYER that rents single-family residences, condominiums or townhomes to EMPLOYEES.
E. The Securities Division of the commission shall establish and maintain a registry of corporations and limited liability companies and affiliates of the corporations and the limited liability companies that purchase or own single-family residences, condominiums or townhomes located in this State. The Securities Division of the commission shall make the registry available on the commission's website.
f. A corporation or a limited liability company or an affiliate of a CORPORATION or a limited liability company that does not register with the securities division in compliance with this section or that intentionally provides misleading information on the application is in violation of this section, and the commission shall provide notice and an opportunity for a formal hearing. If a corporation or a limited liability company or an affiliate of a corporation or a limited liability company is found to be in violation of this section after a formal hearing, the commission shall impose a civil penalty of not more than $20,000 for each violation. The commission shall deposit, pursuant to sections 35-146 and 35-147, penalties collected pursuant to this section in the housing trust fund established by section 41-3955. a VIOLATION OF THIS SECTION DOES NOT APPLY TO EXCUSABLE NEGLECT.
G. The commission shall adopt rules necessary to carry out this section. The commission may establish a fee in rule.
H. tHE ATTORNEY GENERAL MAY ENFORCE THIS SECTION PURSUANT TO TITLE 44, CHAPTER 10, ARTICLE 7.
44-4003. Annual report
On or before January 31, 2027 and each year THEREAFTER, the commission shall submit a report to the governor, the president of the senate, the speaker of the house of representatives, the minority leader of the senate and the minority leader of the house of representatives and shall provide a copy to the secretary of state. The report must contain all of the following:
1. The identification of any corporation or any limited liability company or any affiliate of a corporation or a limited liability company that:
(a) Purchased a single-family residence, condominium or townhome in the previous year. The report must include the zip code of each purchase.
(b) Sold a single-family residence, condominium or townhome in the previous year. The report must include the zip code of each sale.
2. Any other information that the commission deems necessary.
Sec. 2. Title 44, chapter 15.1, article 1, Arizona Revised Statutes, is amended by adding section 44-5102, to read:
44-5102. Corporations; single-family residence; purchase restrictions
A corporation may not purchase a single-family residence, condominium or townhome unless the single-family residence, condominium or townhome has been on the market for more than ninety days or there is a change in the asking price.