--- title: HB 555. Georgians First Residential Property Protection Act; enact collection: bills id: 2025-2026/hb555 cite_as: HB 555, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/hb555 md_url: https://georgiacommons.org/bills/2025-2026/hb555.md text_url: https://georgiacommons.org/bills/2025-2026/hb555/text source_url: https://www.legis.ga.gov/legislation/70600 date: 2025-04-04 status: introduced corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/hb554.md next: https://georgiacommons.org/bills/2025-2026/hb556.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 249 omitted_url: https://georgiacommons.org/bills/2025-2026/hb555.md?full=1 bill_number: HB 555 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: House bill_type: bill status_date: 2025-02-20 last_action: House Withdrawn, Recommitted sponsors: - Derrick McCollum - Martin Momtahan - Joseph Gullett - Chuck Efstration - Spencer Frye - Tyler Smith text_version: Comm Sub has_text: true legiscan_url: https://legiscan.com/GA/bill/HB555/2025 upstream_id: 1978497 summaries_model: claude-sonnet-5 topic_tags: - corporate landlords - housing policy - rental property law - real estate regulation - property ownership limits --- # HB 555. Georgians First Residential Property Protection Act; enact ## Text 25 LC 48 1569S The House Committee on Judiciary offers the following substitute to HB 555: A BILL TO BE ENTITLED AN ACT To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to1 regulation of specialized land transactions, so as to prohibit business enterprises from owning2 an interest in more than 2,000 single-family residential proper ties or ten multifamily3 residential properties; to provide a private cause of action against a business enterprise that4 owns an interest in more than 2,000 single-family residential properties or ten multifamily5 residential properties; to provide for public sale of residential properties unlawfully owned6 by business enterprises; to prohibit the leasing of residential properties unlawfully owned by7 business enterprises; to provide for the forfeiture of rental payments paid in connection with8 an unlawful lease of residential property; to provide a private cause of action for the return9 of rental payments paid in connection with an unlawful lease of residential property; to10 provide for the disclosure of information by brokers; to provide an effective date; to provide11 a short title; to provide for related matters; to repeal conflicting laws; and for other purposes.12 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:13 SECTION 1.14 This Act shall be known and may be cited as the "Georgians Firs t Residential Property15 Protection Act."16 H. B. 555 (SUB) - 1 - 25 LC 48 1569S SECTION 2.17 Chapter 3 of Title 44 of the Official Code of Georgia Annotated , relating to regulation of18 specialized land transactions, is amended by adding a new article to read as follows:19 "ARTICLE 820 44-3-260.21 As used in this article, the term:22 (1) 'Affiliate' means any entity that directly or indirectly owns or controls, is owned or23 controlled by, or is under any other common ownership or contro l with a business24 enterprise.25 (2) 'Business enterprise' means any corporation, association, partnership, limited liability26 company, limited partnership, trust, issuer, or other private legal entity organized under27 the laws of this state, the United States, the District of Colu mbia, or any other state,28 territory, or dependency of the United States or under the laws of a foreign country.29 (3) 'Claimant' means an aggrieved person who seeks recovery of damages under this30 article; provided, however, such term shall not include a government entity or any officer31 or employee of a government entity acting in his or her official capacity.32 (4) 'Government entity' means any office, agency, authority, department, commission,33 board, body, division, instrumentality, or institution of the e xecutive, legislative, or34 judicial branch of the state government or of any political subdivision within this state.35 (5) 'Multifamily residence' means a parcel of real property th at has upon it a structure36 that contains four or more individual dwelling units, each of w hich is designed37 exclusively for use and occupation by one family.38 (6) 'Residential property' means a single-family residence or a multifamily residence,39 including all improvements thereon.40 (7) 'Single-family residence' means a parcel of real property that has upon it a:41 H. B. 555 (SUB) - 2 - 25 LC 48 1569S (A) Detached residential structure that contains between one a nd three individual42 dwelling units, each of which is designed for the exclusive use and occupation by one43 family;44 (B) Townhouse; or45 (C) Condominiums as defined in Code Section 44-3-71.46 (8) 'Townhouse' means an individual residential dwelling unit within a larger structure47 that contains two or more attached residential dwelling units constructed in a row where48 each residential dwelling unit is designed exclusively for use and occupation by one49 family, is located on an individual lot or parcel, and shares at least one common wall with50 an adjacent unit.51 44-3-261.52 (a) On and after January 1, 2026, it shall be unlawful for any business enterprise to obtain,53 own, or possess, directly or indirectly, including, but not limited to, through one or more54 affiliates of such business enterprise, an interest in more tha n 2,000 single-family55 residences or more than ten multifamily residences located in this state.56 (b)(1) For purposes of this Code section, an interest in resid ential property shall not57 include a deed to secure debt, security deed, mortgage, security interest, deed of trust, or58 other lien upon residential property that secures a debt or other obligation, and nothing59 in this Code section shall be construed as prohibiting a business enterprise from owning60 or acquiring a deed to secure debt, security deed, mortgage, se curity interest, deed of61 trust, or other lien upon residential property located in this state.62 (2) An interest in residential property acquired pursuant to the enforcement of a deed to63 secure debt, security deed, mortgage, security interest, deed o f trust, or other lien64 described in paragraph (1) of this subsection by a business ent erprise that would65 otherwise violate subsection (a) of this Code section shall not constitute a violation of66 subsection (a) of this Code section, provided that such interest in residential property is67 H. B. 555 (SUB) - 3 - 25 LC 48 1569S sold or otherwise transferred to another person by the business enterprise within two68 years from the date such interest is acquired.69 44-3-262.70 (a) Any claimant may bring a civil action in any court of comp etent jurisdiction against71 a business enterprise that obtains, owns, or possesses an interest in residential property in72 violation of subsection (a) of Code Section 44-3-261 to recover:73 (1) The greater of:74 (A) Actual damages caused by such violation; or75 (B) Statutory damages in the amount of $15,000.00 for each violation; and76 (2) The costs incurred by the claimant in bringing such action , including reasonable77 attorney's fees.78 (b) For purposes of this Code section, each residential proper ty for which a business79 enterprise or shareholder of a business enterprise obtains, owns, or possesses an interest in80 violation of subsection (a) of Code Section 44-2-261 shall constitute separate violations.81 (c) It shall be an affirmative defense to an award of monetary relief in an action brought82 pursuant to subsection (a) of this Code section if the defendant business enterprise in such83 action can demonstrate that:84 (1) The claimant who brought such action can only recover stat utory damages under85 paragraph (1) of subsection (a) of this Code section;86 (2) It has, during the pendency of such action or no more than 30 days prior to the87 initiation of such action, paid a judgment for the full amount of statutory damages88 provided under subparagraph (B) of paragraph (1) of subsection (a) of this Code section89 that was awarded in a separate action brought pursuant to subse ction (a) of this Code90 section for the same violation of subsection (a) of Code Section 44-3-261 giving rise to91 the current action; and92 H. B. 555 (SUB) - 4 - 25 LC 48 1569S (3) It no longer owns or possesses an interest in the residential property that is the subject93 of such action.94 (d) An action pursuant to subsection (a) of this Code section shall be brought within four95 years from the last day a business enterprise obtained, owned, or possessed an interest in96 residential property in violation of subsection (a) of Code Section 44-3-261 and such action97 may be brought in a representative capacity and may be the subject of a class action under98 Code Section 9-11-23.99 (e) Notwithstanding any provision of law to the contrary, the following shall not be a100 defense to an action brought pursuant to subsection (a) of this Code section:101 (1) Ignorance or mistake of law;102 (2) The business enterprise's reliance on any court decision that has been overruled on103 appeal or by a subsequent court, even if such court decision had not been overruled at the104 time the business enterprise violated the provisions of subsect ion (a) of Code105 Section 44-3-261;106 (3) The business enterprise's reliance on any state or federal court decision that is not107 binding on the court where such action has been brought;108 (4) Non-mutual issue preclusion or non-mutual claim preclusion; or109 (5) Any claim that the enforcement of this Code section or the imposition of civil110 liability against the business enterprise would violate the con stitutional rights of third111 parties.112 (f) Notwithstanding any provision of law to the contrary, no g overnment entity or any113 officer or employee of a government entity acting in his or her official capacity, including,114 without limitation, the Attorney General, any district attorney , or any city or county115 attorney, shall be entitled to intervene in an action brought pursuant to subsection (a) of this116 Code section; provided, however, that nothing in this subsectio n shall prohibit the filing117 of an amicus curiae brief in such action.118 H. B. 555 (SUB) - 5 - 25 LC 48 1569S 44-3-263.119 (a) An interest in residential property that is owned or possessed by a business enterprise120 in violation of subsection (a) of Code Section 44-3-261 shall b e subject to public sale as121 provided in this Code section.122 (b)(1) The Attorney General or any district attorney may bring an action against a123 business enterprise that owns or possesses an interest in residential property in violation124 of subsection (a) of Code Section 44-3-261 for an order directi ng a public sale of such125 interest by filing a petition for public sal e in the superior c ourt where the property is126 located. All parties that have an interest in the residential property shall be joined as127 parties to such action and shall be served with process in acco rdance with Code128 Section 9-11-4.129 (2) The superior court where an action is brought pursuant to this Code section shall,130 after notice and hearing, order a public sale of an interest in residential property if it131 determines that such interest is owned or possessed in violation of subsection (a) of Code132 Section 44-3-261, that divestment of such interest is necessary to enforce the provisions133 of this article, and that such public sale would not be unjust or otherwise inequitable. In134 the event the court orders a public sale, the court shall appoi nt one or more persons as135 commissioners to conduct such sal e under such regulations and u pon such just and136 equitable terms as it may prescribe. The sale shall take place on the first Tuesday in the137 month, shall be at the place of public sales in the county in which the property is located,138 and shall be advertised in the official newspaper of the county once a week for four139 consecutive weeks. Neither the business enterprise against who m the action was filed140 pursuant to this Code section nor any affiliate of such business enterprise shall be entitled141 to purchase the interest in residential property at the public sale.142 (3) After a public sale of an interest in residential property is conducted pursuant to this143 Code section, the proceeds derived from such sale shall be paid into the registry of the144 H. B. 555 (SUB) - 6 - 25 LC 48 1569S superior court that ordered such sale. The court shall then di sburse the proceeds as145 follows:146 (A) First, proceeds shall be applied to the reasonable costs associated with the public147 sale of the interest in residential property;148 (B) Thereafter, proceeds shall be disbursed to any person with a superior interest in149 such proceeds to that of the business enterprise against whom the action for public sale150 was brought pursuant to this Code section, including, without l imitation, any person151 that is owed an outstanding debt or other obligation that is secured by a deed to secure152 debt, security deed, mortgage, security interest, deed of trust , or other lien upon the153 interest in residential property, in order of priority as provided by law; and154 (C) Thereafter, any remaining proceeds shall be disbursed to t he business enterprise155 against whom the action for public sale was brought pursuant to this Code section less156 the costs incurred by the Attorney General or district attorney in bringing such action,157 including reasonable attorney's fees.158 (4) The public sale of an interest in residential property pur suant to this Code section159 shall not extinguish any rights of persons in the property othe r than the business160 enterprise against whom the action for public sale was filed pursuant to this Code section,161 including, without limitation:162 (A) Any person that is owed an outstanding debt or other obligation that is secured by163 a deed to secure debt, security deed, mortgage, security interest, deed of trust, or other164 lien upon the interest in residential property that is not satisfied from the sale proceeds165 disbursed pursuant to paragraph (3) of this subsection; and166 (B) Any person with a leasehold interest in the residential property; provided, however,167 that there shall be no automatic renewal of such leasehold interest and any term in the168 lease agreement providing such automatic renewal shall be void and unenforceable.169 H. B. 555 (SUB) - 7 - 25 LC 48 1569S 44-3-264.170 (a) No business enterprise that owns an interest in residentia l property in violation of171 subsection (a) of Code Section 44-3-261 shall enter into a leas e agreement with another172 person for the lease of such residential property.173 (b) A business enterprise that enters into a lease agreement in violation of subsection (a)174 of this Code section shall not be entitled to collect rental payments in connection with such175 lease and any rental payments collected in connection with such lease shall be subject to176 forfeiture in accordance with the procedures set forth in Chapter 16 of Title 9, the 'Georgia177 Uniform Civil Forfeiture Procedure Act.'178 (c) Any person who makes rental payments to a business enterprise in connection with a179 lease agreement that was entered into by a business enterprise in violation of subsection (a)180 of this Code section may bring an action against such business enterprise in any court of181 competent jurisdiction for the return of such rental payments paid by such person.182 (d) Nothing in this Code section shall be construed as impairing or otherwise limiting the183 leasehold interest of a lessee of a residential property pursua nt to a lease agreement that184 was entered into by a business enterprise in violation of subsection (a) of this Code section.185 44-3-265.186 A broker who is engaged by a client that is a business enterprise and that is a prospective187 buyer or prospective lessor of an interest in residential prope rty shall timely disclose to188 such client the prohibitions set forth in this article. For purposes of this Code section, the189 terms 'broker,' 'client,' and 'timely' shall have the same mean ings as set forth in Code190 Section 10-6A-3."191 SECTION 3.192 This Act shall become effective upon its approval by the Governor or upon its becoming law193 without such approval.194 H. B. 555 (SUB) - 8 - 25 LC 48 1569S SECTION 4.195 All laws and parts of laws in conflict with this Act are repealed.196 H. B. 555 (SUB) - 9 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. A Georgia House bill would bar large corporate landlords from owning more than 2,000 single-family homes or ten multifamily properties statewide, with lawsuits and forced public sales as enforcement tools starting January 1, 2026. ### Plain-language summary 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. ### What it does - 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. ### Who it affects 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. ### Why it matters 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. ### Key provisions - 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. ## Status - Status: Introduced (2025-02-20) - Last action: House Withdrawn, Recommitted (2025-04-04) - Sponsors: Derrick McCollum, Martin Momtahan, Joseph Gullett, Chuck Efstration, Spencer Frye, Tyler Smith - Official page: https://www.legis.ga.gov/legislation/70600 > The history, votes, and amendments (249 characters) are at https://georgiacommons.org/bills/2025-2026/hb555.md?full=1