A House bill filed on Wednesday would limit corporations and investment firms from buying up single-family homes and converting them into rentals, giving local governments the authority to restrict investor-owned housing.
The Strengthening Home Ownership in Florida Act (HB 401), filed by Rep. Berny Jacques, seeks to protect homeownership opportunities by keeping more properties in the hands of individual buyers.
The measure allows counties and cities to zone land exclusively for owner-occupied homes, preventing large-scale rental conversions in certain areas. It additionally creates a new classification, “single-family hybrid housing,” which applies to homes primarily used as rentals and owned by corporations, investment groups, or related entities. Under the proposal, an individual or related entity cannot own more than three single-family properties in a county and still qualify for residential zoning.
“Evolving housing needs require adaptable policy frameworks that promote inclusivity and economic diversity within communities,” the bill reads. “Distinguishing between land use categories for owner occupied single-family residential use and hybrid housing use addresses the diverse needs and preferences of the residents of this state. There is currently no mechanism to ensure that rezoning land into uses for single-family residential use will provide for home ownership opportunities, necessitating legislative action to address this concern.”
Local governments would have broad authority to enforce these rules through zoning and land-use regulations. Under the bill’s purview, municipalities could prohibit hybrid housing in designated areas while still allowing it elsewhere. The law would not apply to government-owned properties, ensuring that affordable housing projects are unaffected.
As of 2023, Florida’s homeownership rate stands at 67.3 percent, according to the Federal Reserve Bank of St. Louis. Meanwhile, corporate investors have been steadily increasing their presence in the state’s housing market, with more than 117,000 single-family homes now owned by corporate entities, according to a 2024 report from Florida Trend.
The bill also includes exemptions for builders and developers, allowing them to construct and sell new homes without restrictions as long as the properties are unoccupied and intended for sale.
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