Legislation Restricting Large-Scale Home Purchases Moves to Senate

Assembly Bill 1240 (Lee) has passed the Assembly and would prohibit a business entity that has an interest in more than 1,000 single-family residential properties from purchasing, acquiring, or otherwise obtaining an ownership interest in another single-family residential property for leasing purposes.

Under the bill, the Attorney General would be authorized to bring a civil action for a violation of the law, recover a civil penalty, and require that the business entity sell the property to an independent third party within one year of the date that the court enters judgment.