This bill aims to prohibit certain institutional investors from bidding on, acquiring, or purchasing single-family homes in New Jersey. It defines "institutional investor" broadly to include partnerships, corporations, limited liability companies, and trusts, as well as their affiliates and beneficial owners. However, it excludes nonprofit organizations focused on affordable housing, family trusts, and family limited liability companies from this definition. The bill outlines specific exceptions where institutional investors can still engage in transactions involving single-family homes, such as small institutional investors, financial institutions acquiring homes through foreclosure, and governmental authorities.

Additionally, the bill mandates that institutional investors must report annually to the Commissioner of Community Affairs, detailing their activities related to single-family homes. If an institutional investor violates the prohibition, they must sell the home within six months, with any profits going to the Attorney General. Violations are classified as unlawful practices under the New Jersey consumer fraud act, subjecting offenders to civil penalties. The bill also empowers affected individuals to file complaints against violators, allowing them to recover associated legal costs. The provisions of the bill will take effect six months after enactment, with anticipatory actions permitted to ensure compliance.