The bill, introduced by Senator Hinojosa, aims to regulate the ownership and rental of single-family homes by corporate entities in Texas. It establishes new sections in the Education Code and Property Code, specifically Sections 86.531 and 86.532, which mandate the Texas Real Estate Research Center to conduct an annual study and report on corporate ownership of single-family homes. This report will include data on purchases, rentals, and sales by corporate owners, as well as an analysis of their impact on housing costs and market trends. Additionally, a statewide database will be created to maintain and publicly share this information in a searchable format.

Furthermore, the bill imposes limitations on corporate ownership of single-family homes, capping the number of homes a corporate owner can hold for rental purposes to ten. It also outlines penalties for violations, including a civil penalty of $100,000 for each home exceeding this limit. The bill provides exceptions for certain entities, such as state agencies and nonprofit organizations, and establishes enforcement mechanisms through the attorney general and local authorities. The provisions of the bill will take effect on September 1, 2025, with a compliance grace period for corporate owners until September 1, 2027.

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