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. It establishes that a business entity with interests in more than 25 such properties is prohibited from acquiring additional single-family homes, while investment entities are completely barred from purchasing these properties. The bill defines "business entity" and "investment entity," and outlines exceptions for nonprofit organizations and certain property modifications or developments. It emphasizes that these practices significantly impact public interest and are considered unfair or deceptive acts under the consumer protection act.

Additionally, the bill amends existing penalties for violations of consumer protection laws, introducing a civil penalty of up to $100,000 for violations of the new provisions regarding single-family residential property purchases. It mandates that violators must sell the property in question 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 requires the Department of Commerce to report to the legislature by June 30, 2026, with recommendations to further discourage business and investment entities from holding single-family residential properties.

Statutes affected:
Original Bill: 19.86.140