The proposed bill aims to restrict corporate entities, developers, and contractors from converting single-family homes into rental properties in Minnesota. It introduces new legal language under Minnesota Statutes, chapter 500, specifically stating that no corporate entity may purchase or acquire single-family homes classified as class 1a and subsequently convert them into nonhomestead residential real estate with rental units. The bill emphasizes the importance of homeownership for families and the stability it brings to communities. It also defines key terms such as "corporate entity," "affordable housing," and "family trust," which are essential for understanding the scope of the legislation.

Additionally, the bill allows for exemptions to this restriction, provided that a corporate entity can demonstrate that their proposed acquisition would not contradict the bill's purpose or adversely impact affordable housing availability. The commissioner of the Minnesota Housing Finance Agency is tasked with reviewing these exemptions annually. Enforcement measures are also outlined, granting the attorney general the authority to take legal action against any corporate entity found in violation of the new regulations, including the potential for property divestment within a specified timeframe.