The bill, introduced by Representative Hinojosa, aims to regulate the ownership and rental of single-family homes by corporate entities in Texas. It amends the Education Code by adding Sections 86.531 and 86.532, which require 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 introduces new provisions in the Property Code, specifically Subchapter H, which limits corporate ownership of single-family homes to a maximum of ten properties used as rental units. It establishes civil penalties for violations of this limit, with fines of $100,000 for each additional home owned beyond the allowed number. The bill also outlines enforcement mechanisms, allowing the attorney general and local authorities to investigate violations and collect penalties. The provisions of the bill will take effect on September 1, 2025, with a grace period for compliance until September 1, 2027.

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