SF 4102

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/13/2026 08:59 a.m.

A bill for an act
relating to housing; prohibiting private equity company ownership of single-family
homes; providing attorney general enforcement; proposing coding for new law in
Minnesota Statutes, chapter 500.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [500.50] SINGLE-FAMILY HOMES; PRIVATE EQUITY OWNERSHIP
PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Private equity company" means an investor or group of investors who primarily
engage in the raising or returning of capital and who invest, develop, or dispose of specified
assets. A private equity company includes publicly or nonpublicly traded entities, real estate
investment trusts, and any investment firm that buys and manages private companies to
make a profit. A private equity company does not include any of the following:
new text end

new text begin (1) a local, state, or federal unit of government or agency;
new text end

new text begin (2) a land trust as defined in section 462A.31;
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new text begin (3) a nonprofit organized under chapter 317A that is creating, rehabilitating, or providing
affordable housing to low- and moderate-income renters or home buyers;
new text end

new text begin (4) a corporation primarily engaged in housing development through the construction
and rehabilitation of single-family homes; or
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new text begin (5) a mortgage note holder that owns the single-family homes through foreclosure.
new text end

new text begin (c) "Homestead" means a property classified as class 1a under section 273.13, subdivision
22.
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new text begin (d) "Real estate investment trust" has the meaning given in United States Code, title 26,
section 856.
new text end

new text begin (e) "Single-family home" means a residential property consisting of one to four dwelling
units.
new text end

new text begin Subd. 2. new text end

new text begin Single-family homes; private equity ownership prohibition. new text end

new text begin A private equity
company is prohibited from having a direct or indirect ownership interest in a single-family
home. This subdivision does not prohibit a natural person from acquiring an ownership
interest in a home that is classified as homestead property for tax purposes.
new text end

new text begin Subd. 3. new text end

new text begin Enforcement. new text end

new text begin The attorney general may enforce this section pursuant to section
8.31.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to interests
in real property acquired on or after that date.
new text end