The proposed bill aims to address the housing crisis in Washington State by limiting the ability of large business and investment entities to purchase single-family residential properties. Specifically, it prohibits any business entity with an interest in more than 50 such properties from acquiring additional single-family homes, and it outright bans investment entities from purchasing these properties. The bill defines "business entity" and "investment entity," clarifying that certain nonprofit organizations and specific purchasing scenarios, such as those involving property modifications or new construction, are exempt from these restrictions.

Additionally, the bill amends existing consumer protection laws to impose civil penalties for violations of these new provisions. A violation of the purchasing restrictions will result in a penalty of up to $100,000 and requires the offending entity to sell the property to an independent third party within one year of a court judgment. Enhanced penalties are also established for unlawful acts targeting specific demographic groups. The bill includes a provision for the Attorney General to evaluate the effectiveness of these penalties every five years, ensuring that they remain relevant and effective in deterring violations.

Statutes affected:
Original Bill: 19.86.140
Substitute Bill: 19.86.140
Second Substitute: 19.86.140