HB 305: Protect the Dream Act; enact

Georgia law currently does not stop large investment funds from buying up single-family homes. House Bill 305, called the Protect the Dream Act, would add a new section to Georgia's property law (O.C.G.A. § 44-5-49) that bars a 'prohibited business' from acquiring any interest in a single-family dwelling in the state. A prohibited business is defined as a partnership, corporation, or real estate investment trust that pools investor money, acts as a fiduciary for those investors, and either holds at least $6,250,000 in total assets or owns interests in 25 or more single-family homes in one county. Nonprofits and homebuilders who don't work with such businesses are excluded. The definition of single-family dwelling includes manufactured home communities and mobile home parks but excludes condos, townhouses, multifamily buildings, unoccupied foreclosed homes, and homes used as a primary residence by someone with an ownership stake in the prohibited business. The law would take effect July 1, 2025, and apply to home sales made on or after that date.

• Adds a new Code section (O.C.G.A. § 44-5-49) banning 'prohibited businesses' from acquiring any interest in a single-family dwelling in Georgia.
• Defines 'prohibited business' as an investment partnership, corporation, or real estate investment trust meeting asset or property-count thresholds, excluding nonprofits and homebuilders.
• Sets the threshold for a prohibited business at $6,250,000 in total assets or ownership interests in at least 25 single-family homes in one county.
• Defines 'single-family dwelling' broadly to include manufactured home communities and mobile home parks, while excluding condos, townhouses, multifamily communities, foreclosed vacant homes, and owner-occupied primary residences.
• Sets the law's effective date as July 1, 2025, applying to any home conveyance made on or after that date.

Large real estate investment firms, real estate investment trusts, and investment partnerships that buy single-family homes in bulk; homebuyers and renters competing for single-family housing; homebuilders; nonprofit housing organizations; and county property records offices handling conveyances.

If enacted, large investment firms meeting the bill's asset or property-count thresholds would be legally barred from buying single-family homes in Georgia starting July 1, 2025, which could change who is able to purchase homes in the state's housing market.

• Section 1 names the bill the 'Protect the Dream Act.'
• Section 2 adds new Code section 44-5-49 defining 'homebuilder,' 'interest,' 'prohibited business,' and 'single-family dwelling,' and prohibiting a prohibited business from acquiring an interest in any single-family dwelling.
• Section 2 sets the prohibited business threshold at $6,250,000 in total assets or ownership interests in at least 25 single-family homes in a single county.
• Section 2 excludes nonprofits under Section 501(c)(3) of the Internal Revenue Code and homebuilders without ties to prohibited businesses from the definition.
• Section 3 sets the effective date as July 1, 2025, applying to conveyances made on or after that date.
• Section 4 repeals conflicting laws.

1. 2025-02-10House Second Readers (Cámara de Representantes)
2. 2025-02-06House First Readers (Cámara de Representantes)
3. 2025-02-05House Hopper (Cámara de Representantes)

• Phil Olaleye (D, HD-059)Patrocinador principal
• Brian Prince (D, HD-132)
• Yasmin Neal (D, HD-079)
• Anne Westbrook (D, HD-163)
• Joseph Gullett (R, HD-019)
• Esther Panitch (D, HD-051)

• housing market
• real estate investment
• single-family homes
• property law
• housing affordability