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. 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 laws regarding civil penalties for violations of consumer protection regulations. It introduces a new civil penalty of up to $100,000 for violations of the new section regarding property purchases, 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 established for unlawful acts targeting specific demographic groups. The bill mandates a report from the Department of Commerce by June 30, 2026, to recommend further disincentives for business and investment entities holding single-family residential properties.

Statutes affected:
Original Bill: 19.86.140