SB 242

This bill enacts the "Homes not Hedge Funds Act, which, for contracts for single-family homes entered into on or after the date this bill becomes a law, this bill makes it unlawful for a person or legal entity (""person""), including an affiliate of the p erson, to purchase a single-family home in Sullivan, Sumner, Montgomery, Williamson, Rutherford, Hamilton, Knox, Davidson, or Shelby County for a purpose other than use by the person as a residence if the person, including an affiliate of the person, owns 1 00 or more single-family homes in such counties that are used primarily for rental purposes. As used in this bill, ""person"" includes an officer or employee of a legal entity, and a member or employee of a partnership who, as officer, employee, member, or manager, acts on behalf of the business entity with whom they are associated or an affiliate of that business entity but does not include a governmental entity. REMEDIES This bill authorizes the attorney general to bring a civil action in a court of competent jurisdiction against a person or affiliate that violates this bill. Additionally, an individual aggrieved by a violation of this bill may bring a civil action agai nst a person or affiliate that acquires a single-family home in violation of this bill. In either action, this bill authorizes a court to impose a civil penalty of up to $100 per day for each single-family home acquired in violation of this bill and may award to the attorney general or a plaintiff who prevails, as applicable, equitable reli ef; compensatory damages; costs and fees, including reasonable attorneys' fees; and punitive damages in an amount not to exceed $50, 000 or three times the total of compensatory damages, costs, and fees, whichever is greater. Likewise, a court may award t o a defendant who prevails costs and fees, including reasonable attorneys' fees, if the court finds the action was not well-grounded in fact or law, or if the action was frivolous. In either action, this bill authorizes a court to order the joinder of parties, if joinder is for the purpose of ensuring a proper accounting regarding the total number of single-family homes owned by the named defendant and any affiliates of the defenda nt, and for the purpose of permitting proper enforcement, remedies, and damages under this bill. If a party is unable to pay an amount awarded by the court, the court may find an interested party so joined to be jointly and severally liable for violation s of this bill and make the award recoverable against one or all of the joined interested parties. This bill clarifies that it does not limit rights and remedies available to this state or an individual under another applicable state law. ON MARCH 9, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 242, AS AMENDED. AMENDMENT #1 makes the following changes:  D efines "" a ffiliate"" as a person, other than an individual, that wholly or partially owns or that has a common ownership interest in a single-family home with another person.  P rohibits a person, including an affiliate of the person, from purchas ing a single-family home in a qualifying county for a purpose other than use by the person as a residence if the person, including an affiliate of the person owns, or has owned within the previous 12 months, 100 or more single-family homes that are bought, renovated, and resold within one year of purchase.  Clarifies that the purchasing prohibition s in the bill do not apply to a person or affiliate if the single-family homes owned by the person or affiliate are affordable housing. This amendment defines "" a ffordable housing"" as housing that, on an annual basis, costs 30% or less than the estimated median household income for households earning 60% or less of the median income for the county as determined by the United States department of housing and urban development, adjusted for family size."