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 any single-family residential properties. The bill defines "business entity" and "investment entity," clarifying the types of organizations affected and exempting certain entities, such as nonprofits and those involved in property modifications or new construction, from these restrictions.

Additionally, the bill amends existing consumer protection laws to impose civil penalties for violations of these new provisions. Specifically, it establishes a penalty of up to $100,000 for each violation of the new purchasing restrictions, along with a requirement to sell the property in violation to an independent third party within one year of a court judgment. Enhanced penalties are also introduced for unlawful acts targeting specific demographic groups. The bill includes provisions for the evaluation of these penalties every five years to ensure their effectiveness in deterring violations.

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