Resolution would let senator introduce rules for certain home arrangements

The proposed bill would require a purchase agreement to say that the buyer is purchasing an interest in a business entity, not the home itself. It covers an entity that owns a single-family home, duplex, triplex, or fourplex in an arrangement where the buyer has exclusive use while holding an interest in the entity.

The proposed bill would bar agreements from sending disputes to a tribunal other than a state or federal court. It would also let owners transfer their interest without the managing entity’s approval or a transfer fee, and without sharing sale proceeds with the entity. These rules cover disputes about the arrangement or business interest, and transfers of an owner’s interest to a later buyer.

The proposed bill would bar certain actions that violate fair housing rules and bar a managing entity under investigation for a securities-law violation from acting on an ownership interest. The Attorney General and courts could enforce the rules. The rules apply to managing entities that own homes used in the arrangements described in the proposed bill; court orders may also cover people affiliated with an entity. The Attorney General could seek an injunction for a violation of the rule about actions during a securities-law investigation. A court could block development, construction, related district steps, or receipt of public money or benefits after finding a violation. The rules would not cover specified homes on subdivided lots within parcels of at least 25 acres owned by religious organizations or certain related nonprofits, or time-share interests.