HB555: HB555 Georgians First Residential Property Protection Act; enact

Georgia law currently places no cap on how many homes a business can own. This bill, called the Georgians First Residential Property Protection Act, would make it illegal for any business enterprise (corporations, LLCs, partnerships, trusts and similar entities, including their affiliates) to own more than 2,000 single-family residences or more than ten multifamily properties in the state, starting January 1, 2026. The bill lets private individuals sue violating businesses for actual damages or $15,000 in statutory damages per property, plus attorney's fees, within four years of the violation, and allows class actions. The Attorney General or a district attorney could force a public sale of illegally held properties through superior court. Businesses that illegally own property could not lease it, and any rent collected on such leases would be subject to forfeiture, with tenants able to sue to get their rent back. Real estate brokers would have to disclose the ownership limits to business clients looking to buy or lease residential property. The law would take effect as soon as the Governor signs it.

• Makes it illegal, starting January 1, 2026, for a business enterprise to own more than 2,000 single-family homes or ten multifamily properties in Georgia, counting affiliates together.
• Creates a private lawsuit allowing an aggrieved person to recover actual damages or $15,000 in statutory damages per violating property, plus attorney's fees.
• Lets the Attorney General or a district attorney petition a superior court to force a public sale of illegally owned residential property, with proceeds paid first to sale costs, then lienholders, then the business.
• Bans businesses that illegally own residential property from leasing it, and makes any rent collected on such leases subject to forfeiture under Georgia's civil forfeiture law.
• Gives tenants who paid rent on an illegal lease the right to sue the business enterprise to get that rent back.
• Requires real estate brokers to disclose the ownership limits to business clients who are buying or leasing residential property.

Corporations, LLCs, partnerships, trusts and other business entities that own large numbers of homes in Georgia, along with their affiliates; tenants renting from such businesses; real estate brokers who represent business buyers or lessors; and the Attorney General and district attorneys, who could pursue enforcement actions.

If enacted, large corporate owners of single-family and multifamily housing in Georgia would have to divest above the caps or face lawsuits, forced public sales, and loss of rental income, which could affect how much corporate-owned housing stock is available to renters and buyers statewide.

• Section 2 adds new Article 8 to Chapter 3 of Title 44, defining key terms like 'business enterprise,' 'affiliate,' 'single-family residence,' and 'multifamily residence' (O.C.G.A. § 44-3-260).
• O.C.G.A. § 44-3-261 sets the ownership cap (2,000 single-family or ten multifamily properties) effective January 1, 2026, and exempts security interests like mortgages and deeds to secure debt.
• O.C.G.A. § 44-3-262 creates a private right of action for statutory damages of $15,000 per violating property or actual damages, plus attorney's fees, with a four-year statute of limitations and class action eligibility.
• O.C.G.A. § 44-3-263 lets the Attorney General or district attorneys seek court-ordered public sales of illegally held properties, barring the violating business or its affiliates from buying at that sale.
• O.C.G.A. § 44-3-264 bars illegal owners from leasing such property, subjects collected rent to forfeiture, and lets tenants sue for return of rent paid, while protecting tenants' existing leasehold rights.
• O.C.G.A. § 44-3-265 requires brokers to disclose the ownership prohibitions to business clients seeking to buy or lease residential property.
• Section 3 makes the Act effective immediately upon the Governor's signature or upon becoming law without signature.

1. 2025-04-04House Withdrawn, Recommitted (House)
2. 2025-03-04House Committee Favorably Reported By Substitute (House)
3. 2025-02-24House Second Readers (House)
4. 2025-02-21House First Readers (House)
5. 2025-02-20House Hopper (House)

• Derrick McCollum (R, HD-030)Primary sponsor
• Martin Momtahan (R, HD-017)
• Joseph Gullett (R, HD-019)
• Chuck Efstration (R, HD-104)
• Spencer Frye (D, HD-122)
• Tyler Smith (R, HD-018)

• corporate landlords
• housing policy
• rental property law
• real estate regulation
• property ownership limits