Our economy will eventually collapse if corporations keep driving up the rent costs. Do we want our future to be “renters only”.  How will people afford to spend money on goods and services if most of their earnings go to rent. Corporations buying up residential homes are making it impossible for average Californians to afford housing. Not to mention thousands upon thousands of properties sitting vacant.  This practice inflates property values and rents, pushing families out of their communities and exacerbating the homelessness crisis. By banning corporate ownership of residential homes, we can ensure that housing remains accessible and affordable for everyone in our state.  Read below a proposal for a law : Sign  and support this proposal on this petition to protect California's housing market from corporate greed!

 

Proposal for Legislation: Prohibition of Corporate Ownership of Residential Homes in California

 

Title
California Residential Property Ownership Act

 

Purpose

To address the housing affordability crisis by preventing corporations from purchasing and owning residential homes, thereby increasing opportunities for individual homebuyers and stabilizing the housing market.

 

Background

The rapid increase in corporate ownership of residential properties has contributed to a shortage of available homes for individual buyers, driving up prices and rents. This trend exacerbates housing unaffordability and destabilizes communities. By restricting corporate ownership of residential properties, this legislation aims to make homeownership more accessible to Californians and promote community stability.

 

Key Provisions

 1. Definitions

 • Residential Property: Any real property improved by a dwelling unit designed for occupancy by one or more families.

 • Corporation: Any legal entity recognized as a corporation under California or federal law, including but not limited to C corporations, S corporations, limited liability companies (LLCs), real estate investment trusts (REITs), and foreign corporations.

 • Exempt Entities: Non-profit organizations, community land trusts, and government agencies are exempt from this prohibition.

 2. Prohibition on Corporate Ownership

 • No corporation shall be permitted to purchase or own residential property within the State of California.

 • Corporations currently owning residential properties must divest such holdings within a period of three years from the date of enactment of this law.

 3. Enforcement and Penalties

 • The California Department of Housing and Community Development (HCD) shall oversee the enforcement of this law.

 • Violations of this prohibition will result in penalties, including fines and forced sale of the residential property.

 • Properties owned in violation of this law may be subject to forfeiture to the State.

 4. Transfer and Divestment

 • Corporations must notify the HCD of any residential property ownership and submit a divestment plan within six months of the law’s enactment.

 • Properties must be sold to individuals, non-profit organizations, community land trusts, or government entities.

 5. Impact Assessment and Review

 • The HCD will conduct an annual review of the law’s impact on housing affordability and availability, reporting findings to the State Legislature.

 • This law shall be subject to review five years after enactment to assess its effectiveness and make necessary adjustments.

 

Implementation

 • Effective Date: This law shall take effect one year from the date of passage to allow for the dissemination of information and compliance preparation.

 • Public Awareness Campaign: The HCD shall initiate a public awareness campaign to inform corporations and the public about the new regulations and compliance requirements.

 

Fiscal Impact

 • Administrative Costs: Initial costs for enforcement and public awareness campaigns.

 • Revenue: Potential increase in state revenue from penalties and sale of forfeited properties.

Justification

 • Housing Affordability: Limiting corporate ownership will help stabilize home prices and rents, making housing more affordable for individual buyers.

 • Community Stability: Promoting individual homeownership fosters community engagement and stability.

 • Market Fairness: Leveling the playing field for individual buyers against large corporations with significant capital advantages.

 

Conclusion

 

The California Residential Property Ownership Act seeks to address the housing crisis by ensuring that residential properties are available for purchase by individuals rather than corporations. This legislation will help make housing more affordable, promote community stability, and ensure fair competition in the housing market. By enacting this law, California can take a significant step toward resolving its housing challenges and creating a more equitable housing market for all residents.