HB864: HB864 End Corporate Ownership of Georgia Homes Act; enact

25 LC 62 0112 House Bill 864 By: Representatives Sanchez of the 42nd, Taylor of the 92nd, Frye of the 122nd, Holly of the 116th, Cummings of the 39th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 5 of Title 44 of the Official Code of Georgia Annotated, relating to1 acquisition and loss of property, so as to require corporations to report the number of2 single-family dwellings they own; to provide for annual reports to the state auditor; to3 provide for the creation of a public portal listing such report s; to provide for a fine; to4 provide for definitions; to provide for a short title; to provide for related matters; to provide5 for an effective date; to repeal conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 This Act shall be known and may be cited as the "End Corporate Ownership of Georgia9 Homes Act."10 SECTION 2.11 Chapter 5 of Title 44 of the Official Code of Georgia Annotated, relating to acquisition and12 loss of property, is amended by adding a new article to read as follows:13 H. B. 864 - 1 - 25 LC 62 0112 "ARTICLE 2A14 44-5-50.15 As used in this article, the term:16 (1) 'Corporation' means any entity subject to the annual corporate net worth tax provided17 for by Article 4 of Chapter 13 of Title 48 or any entity that would be subject to such tax18 if not otherwise excluded by paragraph (2) of Code Section 48-1 3-71; any person or19 entity required to file Form 600, Form 600-S, or Form 700; and real estate investment20 trusts. Such term shall include other persons or entities that o w n m o r e t h a n 2 021 single-family dwellings. Such term shall not include limited liability corporations that22 file as a nonprofit corporation, an entity subject to paragraph (3) of Code23 Section 48-13-71, and any entity solely engaged in the construction or rehabilitation of24 single-family dwellings that does not conduct business by or on behalf of a business25 engaged in another industry.26 (2) 'Housing ownership factor' means the total number of singl e-family dwellings a27 corporation owns an interest in on July 1, 2025.28 (3) 'Interest' means any right, title, or interest in a single-family dwelling.29 (4) 'Real estate investment trust' means an entity that has elected such status for federal30 income tax purposes and meets the requirements of Section 856 of the Internal Revenue31 Code of 1986, as amended.32 (5) 'Single-family dwelling' means any residential property co mposed of one to four33 dwelling units. Such term shall not include unoccupied residen ces acquired through34 foreclosure.35 H. B. 864 - 2 - 25 LC 62 0112 44-5-51.36 (a) On or before December 31, 2025, any corporation owning any interest in a37 single-family dwelling shall submit a report under penalty of p erjury to the state auditor38 which shall include:39 (1) The total number of single-family dwellings in which the corporation has an interest;40 (2) A list identifying each single-family dwelling by county, address, and deed book and41 page number;42 (3) The purchase price of each single-family dwelling;43 (4) The most recent assessed value of each single-family dwelling; and44 (5) The ownership interest in each single-family dwelling.45 (b) The state auditor shall provide such reports to the commis sioner of revenue and the46 Department of Community Affairs.47 (c) By December 31 of each year starting in 2026, every corporation subject to this article48 shall submit a report with the information required by subsection (a) of this Code section. 49 The report shall also include any single-family dwelling sold since the previous report and50 the sale price of such single-family dwelling.51 (d) Any corporation that had owned a single-family dwelling on July 1, 2025, but no52 longer owns the single-family dwelling on December 31, 2025, sh all certify such to the53 state auditor.54 44-5-52.55 The Department of Community Affairs shall create a public portal listing each corporation56 that submitted a report pursuant to Code Section 44-5-51. The listing shall include the57 number of properties owned by the corporation in each county. The Department of58 Community Affairs shall update the portal by March 31 of each year.59 H. B. 864 - 3 - 25 LC 62 0112 44-5-53.60 (a)(1) A corporation shall be permitted to own an interest in single-family dwellings as61 follows:62 (A) By December 31, 2026, a corporation may own an interest in 80 percent of its63 housing ownership factor;64 (B) By December 31, 2027, a corporation may own an interest in 60 percent of its65 housing ownership factor;66 (C) By December 31 2028, a corporation may own an interest in 40 percent of its67 housing ownership factor; and68 (D) By December 31, 2029, a corporation may own an interest in 20 percent of its69 housing ownership factor.70 (2) Any corporation that at any time owns an interest in singl e-family dwellings in71 excess of the number permitted under this subsection shall be subject to a $750,000.0072 fine per excess single-family dwelling in which an interest is owned.73 (b) Any corporation owning an interest in a single-family dwel ling after December 31,74 2030, shall be subject to a $750,000.00 fine per single-family dwelling."75 SECTION 3.76 This Act shall become effective on July 1, 2025.77 SECTION 4.78 All laws and parts of laws in conflict with this Act are repealed.79 H. 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