New Bill Would Crack Down on Corporations Buying Florida Homes
Background
A bill filed in the Florida House of Representatives could make it more difficult for Wall Street-backed landlords to buy homes in the Sunshine State. The bill, known as the Strengthening Homeownership Act, aims to distinguish between traditional owner-occupied single-family homes and rental homes owned by corporations.
Concerns Over Corporate Ownership
According to a first-of-its-kind analysis from the Tampa Bay Times, large corporations own more than 117,000 single-family homes across Florida. Proponents of the growing single-family rental industry say it’s creating more options for those who can’t afford to buy. However, the Times found that these landlords neglected ongoing maintenance issues, evicted tenants at higher rates, and accelerated gentrification in Black neighborhoods.
Impact on Housing Market
Experts say that the concentration of ownership among a handful of companies is linked to rising rent and sales costs, and can shut out individual buyers in the housing market. The bill’s sponsor, Representative Berny Jacques, R-Seminole, said that the reporting by the Times confirmed what he was hearing on the ground from constituents and helped inspire the bill.
Key Provisions
The bill would categorize rental homes owned by corporations as “single-family hybrid” housing, allowing local governments to prohibit them in certain neighborhoods through zoning rules. Additionally, the bill would exempt mom-and-pop landlords, who own three or fewer properties in the same county, from the new regulations.
Alternative Approaches
Some experts have suggested alternative approaches to addressing the issue of corporate ownership, such as capping corporate ownership at a certain number of homes or taxing companies that own more than a given amount. However, Representative Jacques opted to leverage existing land-use rules to make the policy more appealing to his colleagues.
Reaction from Industry
The National Rental Home Council, a trade group representing some of the largest companies operating single-family rentals, contends that its members play a crucial role amid growing housing demand in a market with ballooning population. CEO David Howard said that the bill seems to be nothing more than a blatant attempt to prevent renters from having the right to live in certain communities.
Conclusion
The bill aims to address concerns over corporate ownership of single-family homes in Florida, but its effectiveness remains to be seen. While some experts argue that the bill is a creative way to address the issue, others say that it may not have a significant impact on the current situation.
FAQs
Q: What is the purpose of the bill?
A: The bill aims to distinguish between traditional owner-occupied single-family homes and rental homes owned by corporations, allowing local governments to prohibit corporate-owned rentals in certain neighborhoods.
Q: How does the bill define “single-family hybrid” housing?
A: The bill categorizes rental homes owned by corporations as “single-family hybrid” housing, which would be subject to zoning rules and regulations.
Q: What is the exemption for mom-and-pop landlords?
A: The bill exempts mom-and-pop landlords, who own three or fewer properties in the same county, from the new regulations.
Q: What is the reaction from the industry?
A: The National Rental Home Council, a trade group representing some of the largest companies operating single-family rentals, has expressed concerns over the bill, saying it would limit housing options for renters.
