Senate Bill 242, also known as the "Homes not Hedge Funds Act," aims to address the issue of housing market manipulation in Tennessee, particularly concerning the purchase of single-family homes by business entities for rental purposes. The bill introduces new provisions to Tennessee Code Annotated, specifically adding a part that outlines the definitions of key terms such as "affiliate," "individual," "person," "qualifying county," and "single-family home." It establishes that it is unlawful for any person or their affiliates to purchase a single-family home in a qualifying county for non-residential use if they already own 100 or more single-family homes primarily used for rental.

The bill also empowers the attorney general to initiate civil actions against violators and allows individuals aggrieved by such violations to seek legal recourse. Courts may impose civil penalties of up to $100 per day for each home acquired in violation of the law and can award various remedies, including compensatory and punitive damages. Additionally, the bill provides for the potential joinder of parties in legal actions to ensure proper accounting of home ownership and enforcement of the law. The act will take effect upon becoming law and will apply to contracts for single-family homes entered into thereafter.