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    AB-1240
    Housing & Homelessness

    Single-family residential real property: corporate entity: ownership.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Prohibits large corporations owning over 1,000 single-family homes from buying additional houses to rent out.
    • Requires violating companies to sell properties within one year and pay $100,000 penalties per violation.
    • Empowers the California Attorney General to enforce these restrictions through civil lawsuits.
    • Exempts nonprofit organizations and companies primarily focused on new housing construction.

    Summary

    Assembly Member Lee's proposal to limit corporate ownership of single-family homes would prohibit business entities that own more than 1,000 residential properties from purchasing additional houses for rental purposes. The measure establishes new restrictions in California's Civil Code specifically targeting large-scale corporate landlords while exempting nonprofit organizations and companies primarily engaged in housing construction.

    Under the proposed framework, the California Attorney General would have exclusive authority to pursue civil enforcement actions against violating entities. Companies found in breach of the ownership limits would face penalties of $100,000 per violation and be required to sell non-compliant properties to independent third parties within one year of a court judgment. The bill also allows courts to award attorney's fees and additional relief as deemed appropriate.

    The legislation carves out specific exemptions for properties that business entities construct themselves for rental purposes or purchase as initial buyers from developers. These provisions maintain pathways for corporate involvement in expanding housing supply while targeting restrictions at the acquisition of existing single-family homes.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Judiciary
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Judiciary
    Hearing has not been scheduled yet
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1240 Lee Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass
    Assembly Judiciary Hearing
    Assembly Committee
    Assembly Judiciary Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Introduced. To print.

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Roger NielloR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Benjamin AllenD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Scott WienerD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 15 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Roger NielloR
    Senator
    Committee Member
    Profile
    Benjamin AllenD
    Senator
    Committee Member
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Profile
    Scott WienerD
    Senator
    Committee Member
    Profile
    Henry SternD
    Senator
    Committee Member
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Profile
    John LairdD
    Senator
    Committee Member
    Profile
    Akilah Weber PiersonD
    Senator
    Committee Member
    Profile
    Angelique AshbyD
    Senator
    Committee Member
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    Senator
    Bill Author
    Profile
    Suzette ValladaresR
    Senator
    Committee Member

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-2584
    Single-family residential real property: corporate entity: ownership.
    February 2024
    Failed
    View Bill
    Showing 1 of 1 items
    Page 1 of 1

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Alex Lee
    Alex LeeD
    California State Assembly Member
    Co-Author
    Sasha Renee Perez
    Sasha Renee PerezD
    California State Senator
    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

    Latest Voting History

    View History
    June 3, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    42181979PASS

    Key Takeaways

    • Prohibits large corporations owning over 1,000 single-family homes from buying additional houses to rent out.
    • Requires violating companies to sell properties within one year and pay $100,000 penalties per violation.
    • Empowers the California Attorney General to enforce these restrictions through civil lawsuits.
    • Exempts nonprofit organizations and companies primarily focused on new housing construction.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Alex Lee
    Alex LeeD
    California State Assembly Member
    Co-Author
    Sasha Renee Perez
    Sasha Renee PerezD
    California State Senator

    Summary

    Assembly Member Lee's proposal to limit corporate ownership of single-family homes would prohibit business entities that own more than 1,000 residential properties from purchasing additional houses for rental purposes. The measure establishes new restrictions in California's Civil Code specifically targeting large-scale corporate landlords while exempting nonprofit organizations and companies primarily engaged in housing construction.

    Under the proposed framework, the California Attorney General would have exclusive authority to pursue civil enforcement actions against violating entities. Companies found in breach of the ownership limits would face penalties of $100,000 per violation and be required to sell non-compliant properties to independent third parties within one year of a court judgment. The bill also allows courts to award attorney's fees and additional relief as deemed appropriate.

    The legislation carves out specific exemptions for properties that business entities construct themselves for rental purposes or purchase as initial buyers from developers. These provisions maintain pathways for corporate involvement in expanding housing supply while targeting restrictions at the acquisition of existing single-family homes.

    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Judiciary
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Judiciary
    Hearing has not been scheduled yet
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1240 Lee Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass
    Assembly Judiciary Hearing
    Assembly Committee
    Assembly Judiciary Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Introduced. To print.

    Latest Voting History

    View History
    June 3, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    42181979PASS

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Roger NielloR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Benjamin AllenD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Scott WienerD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 15 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Roger NielloR
    Senator
    Committee Member
    Profile
    Benjamin AllenD
    Senator
    Committee Member
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Profile
    Scott WienerD
    Senator
    Committee Member
    Profile
    Henry SternD
    Senator
    Committee Member
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Profile
    John LairdD
    Senator
    Committee Member
    Profile
    Akilah Weber PiersonD
    Senator
    Committee Member
    Profile
    Angelique AshbyD
    Senator
    Committee Member
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    Senator
    Bill Author
    Profile
    Suzette ValladaresR
    Senator
    Committee Member

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-2584
    Single-family residential real property: corporate entity: ownership.
    February 2024
    Failed
    View Bill
    Showing 1 of 1 items
    Page 1 of 1