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 100 single-family homes from acquiring additional properties, and it outright bans investment entities from purchasing single-family homes. The bill defines "business entity" and "investment entity," clarifying that certain nonprofit organizations and specific property modifications or acquisitions are exempt from these restrictions. The intent is to ensure that affordable housing remains accessible to Washington residents and families, thereby promoting homeownership and intergenerational wealth.

Additionally, the bill amends existing consumer protection laws to impose civil penalties for violations of these new restrictions. A violation of the purchasing prohibitions will result in a civil penalty of up to $100,000, and the offending entity must sell the property in question to an independent third party within one year of a court judgment. The bill also introduces enhanced penalties for unlawful acts targeting specific demographic groups. Furthermore, it mandates a review of the civil penalty amounts every five years to assess their effectiveness in deterring violations of the consumer protection act.

Statutes affected:
Original Bill: 19.86.140
Substitute Bill: 19.86.140
Second Substitute: 19.86.140
Engrossed second substitute: 19.86.140