Bill Text: AZ SB1209 | 2025 | Fifty-seventh Legislature 1st Regular | Introduced
Bill Title: Single-family residence purchases; limitations.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (N/A) - [SB1209 Detail]
Download: Arizona-2025-SB1209-Introduced.html
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REFERENCE TITLE: single-family residence purchases; limitations. |
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State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
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SB 1209 |
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Introduced by Senators Ortiz: Alston, Bravo, Epstein, Hatathlie, Kuby, Miranda, Sundareshan; Representative Sandoval
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AN ACT
amending title 33, chapter 4, article 1, Arizona Revised Statutes, by adding section 33-401.o1; amending section 41-3955, Arizona Revised Statutes; amending title 44, Arizona Revised Statutes, by adding chapter 14; relating to real estate.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 33, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 33-401.01, to read:
33-401.01. Single-family residence purchases; corporate buyer; county recorder; deed; requirements; exception; definitions
A. If a corporation or a limited liability company or an affiliate of a corporation or a LIMITED liability company purchases a single-family residence:
1. The county recorder may not record the deed unless both of the following occur:
(a) The deed that contains the information about the ownership of the corporation or the limited liability company or the affiliate of the corporation or the limited liability company is registered pursuant to section 44-4003.
(b) The corporation or the limited liability company or the affiliate of the corporation or the limited liability company submits to the county recorder a copy of the certificate of registration issued by the corporation commission pursuant to section 44-4003 and the name of the corporation or the limited liability company or the affiliate of the corporation or the limited liability company on the deed matches the name on the certificate of registration accompanying the deed.
2. The deed must clearly state that the single-family residence is not the primary residence of the owner.
B. Subsection A of this section does not apply to a corporation or a limited liability company or an affiliate of a CORPORATION or a limited liability company that owns fewer than ten single-family residences located in this State.
C. For the purposes of this section:
1. "Corporation" has the same meaning prescribed in section 44-4001.
2. "Limited liability company" has the same meaning prescribed in section 44-4001.
3. "single-family residence" has the same meaning prescribed in section 33-1310.
Sec. 2. Section 41-3955, Arizona Revised Statutes, is amended to read:
41-3955. Housing trust fund; purpose; annual report
A. The housing trust fund is established, and the director shall administer the fund. The fund consists of monies from unclaimed property deposited in the fund pursuant to section 44-313, monies deposited in the fund pursuant to section 44-4003 monies transferred pursuant to section 35-751 and investment earnings.
B. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.
C. Except as provided in subsection D of this section, fund monies shall be spent on approval of the department for developing projects and programs connected with providing housing opportunities for low and moderate income households and for housing affordability programs. Pursuant to section 44-313, subsection A, A portion of fund monies shall be used exclusively for housing in rural areas.
D. Fund monies may be spent on constructing or renovating facilities and on housing assistance, including support services, for persons who have been determined to be seriously mentally ill and to be chronically resistant to treatment.
E. For the purposes of subsection C of this section, in approving the expenditure of monies, the director shall give priority to funding projects that provide for operating, constructing or renovating facilities for housing for low-income families and that provide housing and shelter to families that have children.
F. The director shall report annually to the legislature on the status of the housing trust fund. The report shall include a summary of facilities for which funding was provided during the preceding fiscal year and shall show the cost and geographic location of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility. The report shall also include the number of individuals who benefit from housing assistance pursuant to subsection D of this section. The report shall be submitted to the president of the senate and the speaker of the house of representatives, and a copy provided to the secretary of state, not later than September 1 of each year.
G. Monies in the housing trust fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
H. An amount not to exceed ten percent of the housing trust fund monies may be appropriated annually by the legislature to the department for administrative costs in providing services relating to the housing trust fund.
I. For any construction project financed by the department pursuant to this section, the department shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The department shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations.
Sec. 3. Title 44, Arizona Revised Statutes, is amended by adding chapter 14, to read:
CHAPTER 14
SINGLE-FAMILY RESIDENCE PURCHASES
ARTICLE 1. GENERAL PROVISIONS
44-4001. Definitions
In this chapter, unless the context otherwise requires:
1. "Commission" means the corporation commission.
2. "Corporation":
(a) means a corporation that is organized pursuant to title 10.
(b) Does not include a housing authority as defined in section 36-1401.
3. "Limited liability company" means a limited liability company that is organized by filing articles of organization with the commission pursuant to title 29.
4. "Single-family residence" has the same meaning prescribed in section 33-1310.
44-4002. Corporations; limited liability companies; affiliates; single-family residence purchases; limitations; rules; exceptions
A. Except as provided in subsection C of this section:
1. The total number of single-family residences located in this state that may be purchased by a corporation or a limited liability company or an affiliate of a corporation or a limited liability company in any county may not exceed five percent of the total number of any county's single-family residences.
2. The total number of single-family residences located in a county with a population of four hundred thousand persons or more that may be purchased by a corporation or a limited liability company is one hundred units per calendar year.
B. The commission shall adopt rules necessary to carry out this section.
C. Subsection A of this section does not apply to The sale or transfer of single-family residences within a corporation or a limited liability company.
44-4003. Corporations; limited liability companies; affiliates; single-family residence purchases; registration; limitations; exceptions; civil penalty; rules; attorney general
A. a corporation or a limited liability company or an affiliate of a corporation or a LIMITED liability company shall register with the Securities Division of the commission before purchasing a single-family residence located in this State. the registration must include the name under which the corporation or limited liability company or the AFFILIATE of the corporation or LIMITED liability company conducts business.
B. The commission may charge a fee for the registration in an amount to be determined by the commission.
C. The commission shall issue a certificate of registration to each corporation or each limited liability company or an affiliate of a corporation or a limited liability company that registers pursuant to this section.
D. The registration requirement does not apply to any of the following:
1. A corporation or a limited liability company or an affiliate of a corporation or a limited liability company that owns fewer than ten single-family residences located in this State.
2. A gOVERNMENTAL entity. For the purposes of this paragraph, "governmental entity" means this state or any county, city, town, municipality or other political subdivision of this state.
3. Any nonprofit group that is RECOGNIZED by the United States internal revenue service under section 501(c)(3) of the internal revenue code.
4. A lAND TRUST.
5. A gROUP HOME. For the purposes of this paragraph, "Group home" means a home that is certified pursuant to title 36, chapter 7.1, article 4.
6. An eMPLOYER that rents single-family residences to EMPLOYEES.
E. The Securities Division of the commission shall establish and maintain a registry of corporations and limited liability companies and affiliates of the corporations and the limited liability companies that purchase or own single-family residences located in this State. The Securities Division of the commission shall make the registry available on the commission's website.
f. A corporation or a limited liability company or an affiliate of a CORPORATION or a limited liability company that does not register with the securities division in compliance with this section or that intentionally provides misleading information on the application is in violation of this section, and the commission shall provide notice and an opportunity for a formal hearing. If a corporation or a limited liability company or an affiliate of a corporation or a limited liability company is found to be in violation of this section after a formal hearing, the commission shall impose a civil penalty of not more than $20,000 for each violation. The commission shall deposit, pursuant to sections 35-146 and 35-147, penalties collected pursuant to this section in the housing trust fund established by section 41-3955. a VIOLATION OF THIS SECTION DOES NOT APPLY TO EXCUSABLE NEGLECT.
G. The commission shall adopt rules necessary to carry out this section.
H. tHE ATTORNEY GENERAL MAY ENFORCE THIS SECTION PURSUANT TO TITLE 44, CHAPTER 10, ARTICLE 7.
44-4004. Annual report
On or before January 31, 2026 and each year THEREAFTER, the commission shall submit a report to the governor, the president of the senate, the speaker of the house of representatives, the minority leader of the senate and the minority leader of the house of representatives and shall provide a copy to the secretary of state. The report must contain all of the following:
1. The identification of any corporation or any limited liability company or any affiliate of a corporation or a limited liability company that:
(a) Purchased a single-family residence in the previous year. The report must include the zip code of each purchase.
(b) Sold a single-family residence in the previous year. The report must include the zip code of each sale.
2. Any other information that the commission deems necessary.
