HB 555: Georgians First Residential Property Protection Act; enact

Georgia currently has no limit on how many houses or apartment buildings a corporation, LLC, or other business entity can own. This bill, called the Georgians First Residential Property Protection Act, would change that starting January 1, 2026, by making it illegal for a business enterprise (and its affiliates combined) to own or control more than 2,000 single-family residences or more than ten multifamily residences in the state. The bill lets any aggrieved person sue a violating business for actual damages or $15,000 per property, plus attorney's fees, within four years of the violation. It also lets the Attorney General or a district attorney force a public sale of illegally held properties through the superior courts, bans leasing out illegally held properties, allows tenants to sue to get rental payments back, and requires real estate brokers to tell business clients about these rules. Mortgage lenders and lienholders are exempted as long as they sell off any foreclosed property within two years. The law would take effect as soon as the Governor signs it.

• Makes it illegal, starting January 1, 2026, for any business enterprise to own or control more than 2,000 single-family homes or ten multifamily properties in Georgia, counting affiliated companies together.
• Creates a private lawsuit allowing any affected person to collect the greater of actual damages or $15,000 per illegally owned property, plus attorney's fees.
• Lets the Attorney General or a district attorney petition a superior court to force a public sale of properties a business owns in violation of the cap.
• Bans businesses that illegally hold residential property from leasing it out, and makes any rental payments collected on such leases subject to forfeiture.
• Gives tenants who paid rent under an illegal lease the right to sue the business to get that rent money back.
• Requires real estate brokers working for a business client to disclose these ownership limits before a purchase or lease.

Corporations, LLCs, partnerships, trusts, and other business entities that own large numbers of homes or apartment buildings in Georgia, along with their affiliated companies. It also affects tenants renting from such businesses, mortgage lenders and lienholders, real estate brokers, and the Attorney General and district attorneys who would enforce the law.

If enacted, large institutional owners of Georgia housing would have to shed properties above the caps or face lawsuits, forced court-ordered sales, and loss of rental income. Tenants of noncompliant landlords could get rent refunds, while brokers would face new disclosure duties when representing corporate buyers or landlords.

• Section 2 adds new Code Section 44-3-260 defining terms including 'business enterprise,' 'affiliate,' 'single-family residence,' and 'multifamily residence.'
• Code Section 44-3-261 sets the ownership caps (2,000 single-family or 10 multifamily properties) effective January 1, 2026, and exempts liens and mortgages, plus a two-year grace period to sell foreclosed property.
• Code Section 44-3-262 creates a private right of action with damages of the greater of actual harm or $15,000 per violation, plus costs and attorney's fees, and a four-year statute of limitations.
• Code Section 44-3-263 lets the Attorney General or a district attorney sue in superior court to force a public sale of illegally held property, with proceeds distributed by priority of claims.
• Code Section 44-3-264 bars leasing of illegally owned property and subjects any collected rent to forfeiture under Georgia's civil forfeiture law, while letting tenants sue to recover rent paid.
• Code Section 44-3-265 requires brokers representing corporate buyer or lessor clients to disclose the ownership restrictions in this article.
• Section 3 makes the Act effective immediately upon the Governor's signature or upon becoming law without signature.

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

• Derrick McCollum (R, HD-030)Patrocinador principal
• 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)

• housing policy
• corporate homeownership
• real estate law
• tenant rights
• property regulation