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SF3173 (Legislative Session 94 (2025-2026))

Ownership of single-family homes restriction for corporate entities

Related bill: HF2687

AI Generated Summary

Purpose of the Bill

The bill aims to regulate the ownership of single-family homes by corporate entities, increase deed tax rates for corporate purchases of such properties, and use the revenue for affordable housing programs. It also introduces a statewide landlord database to improve transparency and tenant rights.

Main Provisions

  • Restrictions on Corporate Ownership: Corporations, partnerships, or real estate investment trusts are restricted from owning 50 or more single-family homes (defined as properties with one to four dwelling units).

  • Exceptions: The restrictions do not apply to government entities, land trusts, specific non-profits, corporations engaged in housing development, or banks holding foreclosed properties.

  • Deed Tax Increases: The bill proposes a higher deed tax rate of 0.5% on the net consideration of single-family homes transferred to corporate owners.

  • Usage of Revenue: Additional revenue from the deed tax increase will be allocated to the Minnesota Housing Finance Agency for the workforce and affordable homeownership development program.

  • Statewide Landlord Database: A database is to be established by the commissioner of commerce where landlords must submit ownership and contact information, which will be searchable and accessible to the public.

  • Tenant Protections: The bill protects tenants from retaliatory actions by landlords if they report missing landlord information to the database. It also permits tenants or prospective tenants to notify the agency if a landlord is not listed in the database.

Significant Changes to Existing Law

  • Enforcement and Penalties: The commissioner of commerce can levy penalties on corporate owners exceeding ownership limits and can enforce compliance using existing legal frameworks.

  • Deed Tax Allocation: Changes the apportionment of deed tax proceeds to dedicate significant revenues to the housing development fund for affordable housing initiatives.

  • Landlord Accountability: Mandates annual submissions from landlords to the new database and outlines penalties for non-compliance, enhancing transparency and accountability for property ownership.

Relevant Terms

  • Corporate ownership
  • Single-family homes
  • Deed tax
  • Affordable housing
  • Landlord database
  • Tenant rights
  • Housing finance
  • Non-profits

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 01, 2025SenateActionIntroduction and first reading
April 01, 2025SenateActionReferred toJudiciary and Public Safety

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section relates to the classification of property as homestead, affecting the definition of homestead for taxation as used in this bill.",
      "modified": []
    },
    "citation": "273.13",
    "subdivision": "subdivision 22"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section provides the definition for a land trust as referenced in the bill.",
      "modified": []
    },
    "citation": "462A.31",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section is referenced for the commissioner's enforcement authority related to commerce violations.",
      "modified": []
    },
    "citation": "45.027",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section of the Minnesota Statutes is amended to modify the determination of tax rates on property reconveyance.",
      "modified": [
        "Amends existing deed tax rules to include corporate ownership of single-family homes."
      ]
    },
    "citation": "287.21",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section is amended to address the appointment and payment of tax proceeds, with modifications targeting single-family home transfers to corporate entities.",
      "modified": [
        "Reallocates tax proceeds for certain conveyances to the housing development fund."
      ]
    },
    "citation": "287.29",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section is cited concerning the electronic transfer requirements for tax proceeds made to the state treasury.",
      "modified": []
    },
    "citation": "270C.42",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "New allocation of tax proceeds to support affordable housing initiatives."
      ],
      "removed": [],
      "summary": "This section relates to the appropriation of funds for the workforce and affordable homeownership development program.",
      "modified": []
    },
    "citation": "462A.38",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The definition of a landlord is used here to establish requirements for landlord database inclusion.",
      "modified": []
    },
    "citation": "504B.001",
    "subdivision": "subdivision 7"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines residential building, influencing database and tenant-landlord regulations.",
      "modified": []
    },
    "citation": "504B.001",
    "subdivision": "subdivision 11"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The definition of a tenant as referenced in the landlord database context.",
      "modified": []
    },
    "citation": "504B.001",
    "subdivision": "subdivision 12"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors