HB1055: HB1055 Neighborhood Ownership, Transparency, and Accountability (NOTA) Act; enact

26 LC 62 0298 House Bill 1055 By: Representatives Holly of the 116th, Mitchell of the 88th, Cummings of the 39th, Jones of the 143rd, and Myles of the 126th A BILL TO BE ENTITLED AN ACT To amend Chapter 7 of Title 44 of the Official Code of Georgia Annotated, relating to1 landlord and tenant, so as to prohibit certain entities from owning 25 or more single-family2 homes; to provide for the filing of certain information with the Secretary of State; to provide3 for inspections; to provide for civil actions by the Attorney General to enforce the provisions;4 to provide for private rights of action; to provide for damages and remedies; to provide for5 equitable and injunctive relief; to provide for joinder; to pro vide for joint and several6 liability; to provide for construction; to provide for definitions; to provide for a short title;7 to provide for legislative purpose; to provide for legislative findings; to provide for related8 matters; to provide for an effective date and applicability; to repeal conflicting laws; and for9 other purposes.10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 This Act shall be known and may be cited as the "Neighborhood Ownership, Transparency,13 and Accountability (NOTA) Act."14 H. B. 1055 - 1 - 26 LC 62 0298 SECTION 2.15 The purpose of this Act is to balance the interests of building wealth through the use of16 business entities acquiring properties for rental purposes with the state, local, and individual17 economic benefits that result from having a citizenry broadly e ngaged in and accruing the18 advantages attendant to home ownership. This Act further encourages county and municipal19 governments to use their home rule powers to limit the purchase of single-family homes by20 corporate entities and encourage investment by corporate entities into housing development21 and local communities to compensate for the reduction of affordable housing. The purpose22 of this Act is not to inhibit ownership of property but to the address the needs of citizens of23 this state.24 SECTION 3.25 The General Assembly finds that:26 (1) Georgia has experienced significant high rental costs and housing proceeds;27 (2) It is becoming increasingly common for business entities t o purchase substantial28 numbers of single-family homes for use as rental properties;29 (3) The purchase of properties by business entities lowers the supply of and increases the30 cost of homes; and31 (4) Home ownership is recognized as one of the most reliable w ays to build wealth,32 permitting owners to build equity which can serve as reserves i n times of need and, in33 terms of passive income, increases in market value due to such owned property.34 SECTION 4.35 Chapter 7 of Title 44 of the Official Code of Georgia Annotated , relating to landlord and36 tenant, is amended by adding a new article to read as follows:37 H. B. 1055 - 2 - 26 LC 62 0298 "ARTICLE 738 44-7-130.39 As used in this article, the term:40 (1) 'Affiliate' means a person, other than an individual, that wholly or substantially owns,41 is wholly or substantially owned by, or is under common ownership with another person.42 (2) 'Individual' means a natural person.43 (3) 'Person' means any fiduciary, firm, association, partnersh ip, limited liability44 company, corporation, or other business entity or group acting as a unit. Such term45 includes officers and employees of a corporation; members, mana gers, and employees46 of a limited liability company; and members and employees of a partnership who, as an47 officer, employee, member, or manager acts on behalf of a busin ess entity with which48 they are associated or on behalf of an affiliate of such business entity. Such term shall49 not include government entities.50 (4) 'Qualifying county' means a county with a population greater than 150,000 as of the51 most recent United States decennial census.52 (5) 'Single-family home' means a residential structure that is either a fully detached or53 semidetached building or is a row or townhome that:54 (A) Is separated from the adjacent unit by a ground to roof wall;55 (B) Does not share heating or cooling systems or utilities; and56 (C) Does not have units located above or below it.57 44-7-131.58 A person and affiliates of such person shall not purchase a sin gle-family home in a59 qualifying county for a purpose other than for use by such pers on as a residence if the60 person and affiliates of such person own 25 or more single-fami ly homes that are used61 primarily for rental purposes.62 H. B. 1055 - 3 - 26 LC 62 0298 44-7-132.63 (a) A person and affiliates of such person shall provide the following information relative64 to such person and any such affiliates to the Secretary of State by September 1, 2026, and65 by January 30 annually thereafter:66 (1) Any equity or debt financing from any business entity prov iding equity or debt67 financing of $5 million or greater including:68 (A) The name of the entity;69 (B) The place of incorporation;70 (C) The type of equity or debt financing; and71 (D) The amount of equity or debt financing;72 (2) The number of properties owned in this state, the United States, and internationally;73 (3) The number of evictions for the previous year; and74 (4) Identifying information of all properties owned in this state, including:75 (A) Address;76 (B) Ownership of the property;77 (C) Amount of rent charged;78 (D) Appraised value; and79 (E) Management company information, including:80 (i) Name;81 (ii) Address; and82 (iii) Contact information.83 44-7-133.84 A person and affiliates of such person shall have a property inspection conducted on each85 single-family home owned by the person and by such affiliates verifying adherence with86 local regulations. A person and affiliates of such person shall publicize the results of such87 inspection within 30 days of a request to publish such results.88 H. B. 1055 - 4 - 26 LC 62 0298 44-7-134.89 (a) The Attorney General may bring an action to enforce the provisions of this article on90 his or her own initiative for civil penalties, injunctive relief, or any relief as the court deems91 appropriate.92 (b) A person, individual, or municipal or county government may bring an action against93 any person or affiliate of such person that acquires a single-family home in violation of this94 article. The court may impose civil penalties of up to $100.00 per day per each95 single-family home acquired in violation of this article. The court may award:96 (1) Equitable relief;97 (2) General and special damages;98 (3) Attorney's fees and costs; and99 (4) Punitive damages of up to $50,000.00 or three times the to tal damages, costs, and100 fees, whichever is greater.101 (c) A court may award a prevailing defendant attorney's fees and costs upon finding that102 the action was frivolous or was brought for an improper purpose, including to harass, cause103 undue delay, or needlessly increase the cost of litigation.104 (d) In an action brought pursuant to subsections (a) and (b) of this Code section, a court105 may grant a motion for joinder of any affiliate defendant for t he purposes of ensuring a106 proper accounting regarding the total number of single-family homes owned by the named107 defendant and any affiliates of such defendant and permitting p roper enforcement,108 remedies, and damages.109 (e) Liability may be established against individual defendants or jointly and severally for110 the named defendant and any parties joined pursuant to subsection (d) of this Code section.111 (f) This article shall not be construed to limit the rights and remedies available to the state112 or to any individual or person under any other law, and shall n ot alter or restrict the113 Attorney General's authority to enforce this article."114 H. B. 1055 - 5 - 26 LC 62 0298 SECTION 5.115 This Act shall become effective upon its approval by the Governor or upon its becoming law116 without such approval and shall apply to all purchases of single-family homes occurring on117 or after such date.118 SECTION 6.119 All laws and parts of laws in conflict with this Act are repealed.120 H. B. 1055 - 6 -