SF3173

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

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 31, 2025	Senate	Floor	Action	Introduction and first reading
March 31, 2025	Senate	Floor	Action	Referred to	Judiciary 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"
  }
]