This bill aims to prohibit hedge funds, private equity firms, corporations, and other businesses from purchasing single-family residential properties in New Mexico. The legislation is designed to protect the housing market and ensure that single-family homes remain accessible to individual buyers rather than being acquired by large investment entities.

However, the bill includes an exemption for limited liability companies (LLCs) that are organized under the Limited Liability Company Act, allowing them to continue purchasing single-family residential properties. This provision acknowledges the role of LLCs in the housing market while still aiming to restrict larger corporate entities from dominating the single-family home sector.