HB 3191

                                SECOND REGULAR SESSION
                   HOUSE BILL NO. 3191
                          103RD GENERAL ASSEMBLY
                         INTRODUCED BY REPRESENTATIVE HAUSMAN.
6881H.01I  JOSEPH ENGLER, Chief Clerk
                                           AN ACT
To amend chapter 135, RSMo, by adding thereto one new section relating to ownership of
      single-family residential property, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
       Section A. Chapter 135, RSMo, is amended by adding thereto one new section, to be
2 known as section 135.1675, to read as follows:
       135.1675. 1. As used in this section, the following terms mean:
2(1) "Affiliate entity", any entity directly or indirectly controlling, controlled by,
3 or under common control with another entity including through beneficial ownership or
4 contractual control;
5(2) "Control", ownership of ten percent or more of voting interests, profit
6 interests, or the power to direct management or policies of an entity;
7(3) "Covered institutional investor":
8(a) A hedge fund;
9(b) A private equity fund;
10(c) A real estate investment trust (REIT); or
11(d) An investment vehicle, partnership, trust, or corporation that:
12a. Pools capital from investors;
13b. Is managed by an investment advisor or sponsor; and
14c. Acquires residential real estate primarily for rental income or asset
15 appreciation;
16(4) "Department", the department of revenue;
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.
HB 3191  2
17(5) "Single-family residential real estate property", a detached residential
18 structure designed for occupancy by one household, including a condominium or
19 townhome classified as a single-family dwelling but excluding duplexes, triplexes,
20 apartment buildings, and other multifamily residential property.
212. (1) A covered institutional investor shall be prohibited from purchasing or
22 acquiring any interest in single-family residential real estate located in this state on or
23 after January 1, 2027. Such prohibition applies to purchases made directly or indirectly
24 including through subsidiaries or affiliates, special-purpose entities, nominee
25 purchasers, or any structure created to evade the prohibition on purchasing single-
26 family residential real estate.
27(2) The attorney general, on behalf of the state of Missouri, may void any
28 transaction entered into by a covered institutional investor in violation of this
29 subsection.
303. Covered institutional investors that lawfully own single-family residential real
31 estate in Missouri prior to January 1, 2027:
32(1) May continue to own and manage such property, subject to the penalty
33 provisions in subsection 4 of this section; and
34(2) Shall not be required to divest their interest in the property.
354. (1) Beginning January 1, 2027, any covered institutional investor that owns
36 one or more single-family residential real estate properties in Missouri shall be subject
37 to an annual civil penalty assessed against each property by the department, as follows:
38(a) For ownership of one to fifty single-family residential real estate properties,
39 two thousand five hundred dollars per home;
40(b) For ownership of fifty-one to one hundred single-family residential real
41 estate properties, three thousand seven hundred fifty dollars per home; and
42(c) For ownership of one hundred one or more single-family residential real
43 estate properties, five thousand dollars per home.
44(2) Covered institutional investors may reduce or eliminate future penalty
45 assessments through divestment of single-family residential real estate properties.
46(3) Existing owners shall not expand their Missouri single-family residential real
47 estate property portfolio on or after January 1, 2027.
485. The department of revenue is hereby authorized to assess the annual penalties
49 under subsection 4 of this section which are payable by the covered institutional
50 investors regardless of whether the property subject to the assessment is occupied,
51 rented, or vacant.
526. The provisions of this section shall not apply to:
53(1) Individuals purchasing a primary residence;
HB 3191  3
54(2) Family-owned businesses where Missouri residents have a majority-
55 ownership interest;
56(3) Nonprofit housing organizations;
57(4) Entities engaged solely in construction of new single-family residential real
58 estate properties intended for sale to owner-occupants;
59(5) Transfers of single-family residential real estate property acquired by
60 inheritance; or
61(6) Transfers of single-family residential real estate property based upon
62 foreclosure or deed in lieu of foreclosure.
637. Each covered institutional investor that owns single-family residential real
64 estate property in Missouri shall file an annual report certified under penalty of perjury
65 with the department before January fifteenth of each year, in the manner and format
66 determined by the department through rule. The report shall include, but not be
67 limited to:
68(1) The number and location of the single-family residential real estate
69 properties owned;
70(2) Ownership of the single-family residential real estate properties by a covered
71 institutional investor or affiliate entity;
72(3) Identification of the ownership by beneficial owners who have majority
73 control; and
74(4) Any other information that the department in coordination with the attorney
75 general determines is necessary for inclusion in the report.
768. The department and the attorney general's office are vested with concurrent
77 authority to enforce this section.
789. The attorney general is authorized to bring a civil action in a court of
79 competent jurisdiction in the county where all or part of the real estate property that is
80 the subject of the violation is located. The attorney general has discretionary authority
81 to aggregate transactions across affiliated entities for enforcement purposes.
8210. Any permanent injunction, judgment, or order of the court shall be prima
83 facie evidence in an action brought under this section that the defendant used or
84 engaged in an action or practice that is contrary to the provisions of this section.
8511. An institutional investor or affiliated entity that a court determines in an
86 action brought under subsection 9 of this section to have violated the provisions of this
87 section, is subject to:
88(1) A civil penalty or fine of fifty thousand dollars per prohibited transaction
89 relating to ownership of single-family residential real estate; and
 HB 3191  4
90(2) Disgorgement of profits derived from the acquisition of single-family
91 residential real estate purchased on or after January 1, 2027, in violation of this section.
9212. The department shall promulgate all necessary rules and regulations for the
93 administration of this section. Any rule or portion of a rule, as that term is defined in
94 section 536.010, that is created under the authority delegated in this section shall
95 become effective only if it complies with and is subject to all of the provisions of chapter
96 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable
97 and if any of the powers vested with the general assembly pursuant to chapter 536 to
98 review, to delay the effective date, or to disapprove and annul a rule are subsequently
99 held unconstitutional, then the grant of rulemaking authority and any rule proposed or
100 adopted after August 28, 2026, shall be invalid and void.
10113. This section shall become effective on January 1, 2027.
                                              ✔