Assembly Bill 213 aims to prohibit hedge funds from acquiring single-family homes in Wisconsin. The bill defines a hedge fund as any organization that manages pooled funds from investors, has a net value or assets under management of $50 million or more, and is not a tax-exempt organization under the Internal Revenue Code. Under this legislation, any ownership interest in a single-family home that is acquired or owned by a hedge fund in violation of this prohibition will be forfeited to the state, with the attorney general responsible for enforcement.

The bill also specifies that the prohibition applies only to ownership interests acquired by hedge funds on or after the first day of the first month following the effective date of the law, ensuring that any interests acquired before this date are not subject to forfeiture. This legislative measure is intended to address concerns regarding the impact of hedge fund investments on the housing market and the availability of single-family homes for individual buyers.