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

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.