HOUSE BILL NO. 3167 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE EALY.
6897H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 620, RSMo, by adding thereto one new section relating to investor purchase of residential homes, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 620, RSMo, is amended by adding thereto one new section, to be 2 known as section 620.5000, to read as follows: 620.5000. 1. As used in this section, the following terms mean: 2 (1) "Community-based entity", a nonprofit organization, community 3 development corporation, or community land trust whose mission includes affordable 4 housing or resident ownership; 5 (2) "Covered residential property", includes: 6 (a) A single-family home; 7 (b) A two-family duplex, three-family triplex, or four-family quadplex dwelling 8 unit; or 9 (c) Any parcel zoned primarily for residential use containing up to four dwelling 10 units; 11 (3) "Department", the department of economic development; 12 (4) "Individual owner", a natural person who holds title in their own name, or in 13 a revocable trust for their primary residence or family use; 14 (5) "Institutional investor", any entity: 15 (a) Including a hedge fund, private equity firm, real estate investment trust, 16 corporation, partnership, or limited liability company, that owns, directly or indirectly, 17 more than fifty covered residential properties within the United States; or
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 3167 2
18 (b) That manages assets on behalf of others with an aggregate value exceeding 19 one hundred million dollars and engages in real estate investment as part of its business 20 operations. 21 2. (1) No institutional investor shall purchase, acquire, or take title to any 22 covered residential property on or after August 28, 2026. 23 (2) No subsidiary, affiliate, shell company, or special-purpose entity created for 24 the purpose of evading the provisions of this section shall be permitted to hold title to a 25 covered residential property. 26 3. Any transfer of ownership made by an institutional investor or its subsidiary, 27 affiliates, shell company, or special-purpose entity in violation of this section shall be 28 void, and title shall revert to the prior owner for resale to an eligible buyer. 29 4. The provisions of this section shall not apply to: 30 (1) Nonprofit affordable housing providers or land trusts; 31 (2) Public housing authorities; 32 (3) Small businesses or local partnerships owning fewer than fifty covered 33 residential units statewide; or 34 (4) Financial institutions holding foreclosed properties for resale within twelve 35 months of acquisition. 36 5. The department shall coordinate with each county recorder of deeds in the 37 appropriate county office or use the county's official website portal to: 38 (1) Create and maintain a registry of institutional investors and their residential 39 property holdings in the state; and 40 (2) Review recorded deeds and titles to ensure compliance with this section. 41 6. No later than January 31, 2027, and every six months thereafter, the 42 department shall provide the registry data generated under subsection 5 of this section 43 to the Missouri housing development commission created under chapter 215. Such 44 information or data shall be provided in a format established by the department. The 45 department is authorized to enter into data-sharing contracts to maintain the 46 confidentiality of the information as required by law. 47 7. The attorney general's office is authorized to enforce this section and shall 48 bring a civil action including, but not limited to, forfeiture proceedings in a court of 49 competent jurisdiction in the county where all or part of the real property that is the 50 subject of the violation is located. 51 8. Any permanent injunction, judgment, or order of the court shall be prima 52 facie evidence in an action brought under this section that the defendant used or 53 engaged in an action or practice that is contrary to the state's prioritization for 54 affordable housing or resident ownership. HB 3167 3
55 9. An institutional investor or entity that a court determines in an action brought 56 under this section by the attorney general's office to have violated the provisions of this 57 section is subject to: 58 (1) A civil penalty or fines of up to fifty thousand dollars per property; and 59 (2) Divestiture of property or properties unlawfully obtained either through sale, 60 termination of a leasehold, or other disposition of the interest in property. 61 10. Any resident displaced by a violation under this section may bring a private 62 civil action in the circuit court where all or part of the real property that is the subject of 63 the violation is located, to seek injunctive relief and recover actual damages. 64 11. The department shall promulgate all necessary rules and regulations for the 65 administration of this section including, but not limited to, the following: 66 (1) Define compliance reporting standards; 67 (2) Establish verification and audit procedures for institutional ownership; and 68 (3) Develop guidelines for the resale of divested homes to individual and 69 community-based buyers. 70 12. Any rule or portion of a rule, as that term is defined in section 536.010, that 71 is created under the authority delegated in this section shall become effective only if it 72 complies with and is subject to all of the provisions of chapter 536 and, if applicable, 73 section 536.028. This section and chapter 536 are nonseverable and if any of the powers 74 vested with the general assembly pursuant to chapter 536 to review, to delay the 75 effective date, or to disapprove and annul a rule are subsequently held unconstitutional, 76 then the grant of rulemaking authority and any rule proposed or adopted after August 77 28, 2026, shall be invalid and void. ✔
Statutes affected: