Acording to USAToday.com, a bill limiting the number of houses that a corporation can buy has passed the California State Assembly and is now in the state Senate.
The bill, introduced by Democratic Rep. Alex Lee, would prevent businesses from buying more than 1,000 single-family home properties and renting them out, as enforced by the state's Attorney General. Lee says such institutional investors profit off of real estate markets with increasing rents while outbidding everyday Californians who are trying to buy homes.
The vote passed the Democratic-controlled Assembly on Tuesday with 48 in favor and 11 against, with at least two Republicans showing support.
Guess California doesn't know how easy shell companies are to aet up.
ReplyDeleteAs expected, a politician does something that only looks effective but is trivially easy to evade. Create one LLC for every 1000 homes, rent 999 out and you are free and clear and under their threshold. Remember, Hollywood considers it totally normal to spin up a new corporation for EVERY movie they make, that is how a popular film can bring in 100s of millions of dollars at the box office and still have ZERO net profit.
ReplyDeleteWhen we lived in CA we got at least one cash purchase offer each week, and sometimes one every day.
The cash offers i always received were for at least 40% to 60% below market value.
DeleteSo we no longer will have corporations owning 10,000 homes.
ReplyDeleteWe'll now have 20 subsidiaries owning 1000 homes each.
As usual with Progressives and RINOs it isn't about solving a problem, it's about control.
ReplyDelete