HF2687

HF2687 (Legislative Session 94 (2025-2026))

Single-family home ownership restricted for corporate entities, increased deed tax rates on conveyances of single-family homes provided to corporate owners, state portion of revenues dedicated from the increased deed tax rates for the workforce and affordable homeownership program, and statewide landlord database created.

Related bill: SF3173

AI Generated Summary

Purpose of the Bill

This bill aims to regulate corporate ownership of single-family homes, increase taxes on corporate real estate transactions, and support affordable homeownership programs. It also seeks to enhance transparency and accountability by creating a statewide database of landlords.

Main Provisions

Restrict Corporate Ownership: Limits corporate entities from owning 50 or more single-family homes.
Increased Deed Tax: Raises the deed tax rate to 0.5% on single-family homes sold to corporate owners, with the goal of deterring excessive corporate acquisition of residential properties.
Allocation of Tax Revenue: Redirects 97% of the increased deed tax revenue to the state's housing development fund to support workforce and affordable homeownership programs.
Statewide Landlord Database: Establishes a database requiring landlords to register and update their ownership and contact information annually, thereby improving tenant access to important landlord information.

Significant Changes to Existing Law

Tax Code Adjustments: Amends existing tax statutes to incorporate increased deed tax rates for corporate property purchases.
New Regulations on Ownership and Accountability: Introduces new laws prohibiting excessive corporate ownership of single-family homes and outlines penalties for violations.
Enhanced Regulatory Oversight: Grants the commissioner of commerce authority to investigate and penalize corporate violations regarding property ownership, including imposing a fine of $25,000 per excess home owned.

Relevant Terms

Corporate ownership restrictions
Single-family homes
Deed tax
Affordable housing development fund
Statewide landlord database
Real estate ownership limits
Housing Finance Agency

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 23, 2025	House	Floor	Action	Introduction and first reading, referred to	Housing Finance and Policy
March 25, 2025	House	Floor	Action	Authors added
March 31, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "New provision for increased deed tax rates for single-family homes conveyed to corporate owners."
      ],
      "removed": [
        ""
      ],
      "summary": "This legislation amends the determination of the deed tax under section 287.21.",
      "modified": [
        "Clarification on tax determination for specific corporate transfers."
      ]
    },
    "citation": "287.21",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Referencing the classification of homestead property as Class 1a under section 273.13.",
      "modified": [
        ""
      ]
    },
    "citation": "273.13",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Reference to nonprofit organization classifications under chapter 317A.",
      "modified": [
        ""
      ]
    },
    "citation": "317A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Specification that a portion of proceeds go to the housing development fund for affordable homeownership."
      ],
      "removed": [
        ""
      ],
      "summary": "This section amends the appointment and payment of tax proceeds under section 287.29.",
      "modified": [
        ""
      ]
    },
    "citation": "287.29",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Provision defines certain corporate ownership exceptions using section 462A.31.",
      "modified": [
        ""
      ]
    },
    "citation": "462A.31",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Provides the commissioner of commerce authority to enforce compliance under section 45.027.",
      "modified": [
        ""
      ]
    },
    "citation": "45.027",
    "subdivision": ""
  }
]