25 LC 48 1569S
The House Committee on Judiciary offers the following substitute to HB 555:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to1
regulation of specialized land transactions, so as to prohibit business enterprises from owning2
an interest in more than 2,000 single-family residential properties or ten multifamily3
residential properties; to provide a private cause of action against a business enterprise that4
owns an interest in more than 2,000 single-family residential properties or ten multifamily5
residential properties; to provide for public sale of residential properties unlawfully owned6
by business enterprises; to prohibit the leasing of residential properties unlawfully owned by7
business enterprises; to provide for the forfeiture of rental payments paid in connection with8
an unlawful lease of residential property; to provide a private cause of action for the return9
of rental payments paid in connection with an unlawful lease of residential property; to10
provide for the disclosure of information by brokers; to provide an effective date; to provide11
a short title; to provide for related matters; to repeal conflicting laws; and for other purposes.12
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:13
SECTION 1.14
This Act shall be known and may be cited as the "Georgians First Residential Property15
Protection Act."16
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SECTION 2.17
Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to regulation of18
specialized land transactions, is amended by adding a new article to read as follows:19
"ARTICLE 820
44-3-260.21
As used in this article, the term:22
(1) 'Affiliate' means any entity that directly or indirectly owns or controls, is owned or23
controlled by, or is under any other common ownership or control with a business24
enterprise.25
(2) 'Business enterprise' means any corporation, association, partnership, limited liability26
company, limited partnership, trust, issuer, or other private legal entity organized under27
the laws of this state, the United States, the District of Columbia, or any other state,28
territory, or dependency of the United States or under the laws of a foreign country.29
(3) 'Claimant' means an aggrieved person who seeks recovery of damages under this30
article; provided, however, such term shall not include a government entity or any officer31
or employee of a government entity acting in his or her official capacity.32
(4) 'Government entity' means any office, agency, authority, department, commission,33
board, body, division, instrumentality, or institution of the executive, legislative, or34
judicial branch of the state government or of any political subdivision within this state.35
(5) 'Multifamily residence' means a parcel of real property that has upon it a structure36
that contains four or more individual dwelling units, each of which is designed37
exclusively for use and occupation by one family.38
(6) 'Residential property' means a single-family residence or a multifamily residence,39
including all improvements thereon.40
(7) 'Single-family residence' means a parcel of real property that has upon it a:41
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(A) Detached residential structure that contains between one and three individual42
dwelling units, each of which is designed for the exclusive use and occupation by one43
family;44
(B) Townhouse; or45
(C) Condominiums as defined in Code Section 44-3-71.46
(8) 'Townhouse' means an individual residential dwelling unit within a larger structure47
that contains two or more attached residential dwelling units constructed in a row where48
each residential dwelling unit is designed exclusively for use and occupation by one49
family, is located on an individual lot or parcel, and shares at least one common wall with50
an adjacent unit.51
44-3-261.52
(a) On and after January 1, 2026, it shall be unlawful for any business enterprise to obtain,53
own, or possess, directly or indirectly, including, but not limited to, through one or more54
affiliates of such business enterprise, an interest in more than 2,000 single-family55
residences or more than ten multifamily residences located in this state.56
(b)(1) For purposes of this Code section, an interest in residential property shall not57
include a deed to secure debt, security deed, mortgage, security interest, deed of trust, or58
other lien upon residential property that secures a debt or other obligation, and nothing59
in this Code section shall be construed as prohibiting a business enterprise from owning60
or acquiring a deed to secure debt, security deed, mortgage, security interest, deed of61
trust, or other lien upon residential property located in this state.62
(2) An interest in residential property acquired pursuant to the enforcement of a deed to63
secure debt, security deed, mortgage, security interest, deed of trust, or other lien64
described in paragraph (1) of this subsection by a business enterprise that would65
otherwise violate subsection (a) of this Code section shall not constitute a violation of66
subsection (a) of this Code section, provided that such interest in residential property is67
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sold or otherwise transferred to another person by the business enterprise within two68
years from the date such interest is acquired.69
44-3-262.70
(a) Any claimant may bring a civil action in any court of competent jurisdiction against71
a business enterprise that obtains, owns, or possesses an interest in residential property in72
violation of subsection (a) of Code Section 44-3-261 to recover:73
(1) The greater of:74
(A) Actual damages caused by such violation; or75
(B) Statutory damages in the amount of $15,000.00 for each violation; and76
(2) The costs incurred by the claimant in bringing such action, including reasonable77
attorney's fees.78
(b) For purposes of this Code section, each residential property for which a business79
enterprise or shareholder of a business enterprise obtains, owns, or possesses an interest in80
violation of subsection (a) of Code Section 44-2-261 shall constitute separate violations.81
(c) It shall be an affirmative defense to an award of monetary relief in an action brought82
pursuant to subsection (a) of this Code section if the defendant business enterprise in such83
action can demonstrate that:84
(1) The claimant who brought such action can only recover statutory damages under85
paragraph (1) of subsection (a) of this Code section;86
(2) It has, during the pendency of such action or no more than 30 days prior to the87
initiation of such action, paid a judgment for the full amount of statutory damages88
provided under subparagraph (B) of paragraph (1) of subsection (a) of this Code section89
that was awarded in a separate action brought pursuant to subsection (a) of this Code90
section for the same violation of subsection (a) of Code Section 44-3-261 giving rise to91
the current action; and92
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(3) It no longer owns or possesses an interest in the residential property that is the subject93
of such action.94
(d) An action pursuant to subsection (a) of this Code section shall be brought within four95
years from the last day a business enterprise obtained, owned, or possessed an interest in96
residential property in violation of subsection (a) of Code Section 44-3-261 and such action97
may be brought in a representative capacity and may be the subject of a class action under98
Code Section 9-11-23.99
(e) Notwithstanding any provision of law to the contrary, the following shall not be a100
defense to an action brought pursuant to subsection (a) of this Code section:101
(1) Ignorance or mistake of law;102
(2) The business enterprise's reliance on any court decision that has been overruled on103
appeal or by a subsequent court, even if such court decision had not been overruled at the104
time the business enterprise violated the provisions of subsection (a) of Code105
Section 44-3-261;106
(3) The business enterprise's reliance on any state or federal court decision that is not107
binding on the court where such action has been brought;108
(4) Non-mutual issue preclusion or non-mutual claim preclusion; or109
(5) Any claim that the enforcement of this Code section or the imposition of civil110
liability against the business enterprise would violate the constitutional rights of third111
parties.112
(f) Notwithstanding any provision of law to the contrary, no government entity or any113
officer or employee of a government entity acting in his or her official capacity, including,114
without limitation, the Attorney General, any district attorney, or any city or county115
attorney, shall be entitled to intervene in an action brought pursuant to subsection (a) of this116
Code section; provided, however, that nothing in this subsection shall prohibit the filing117
of an amicus curiae brief in such action.118
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44-3-263.119
(a) An interest in residential property that is owned or possessed by a business enterprise120
in violation of subsection (a) of Code Section 44-3-261 shall be subject to public sale as121
provided in this Code section.122
(b)(1) The Attorney General or any district attorney may bring an action against a123
business enterprise that owns or possesses an interest in residential property in violation124
of subsection (a) of Code Section 44-3-261 for an order directing a public sale of such125
interest by filing a petition for public sale in the superior court where the property is126
located. All parties that have an interest in the residential property shall be joined as127
parties to such action and shall be served with process in accordance with Code128
Section 9-11-4.129
(2) The superior court where an action is brought pursuant to this Code section shall,130
after notice and hearing, order a public sale of an interest in residential property if it131
determines that such interest is owned or possessed in violation of subsection (a) of Code132
Section 44-3-261, that divestment of such interest is necessary to enforce the provisions133
of this article, and that such public sale would not be unjust or otherwise inequitable. In134
the event the court orders a public sale, the court shall appoint one or more persons as135
commissioners to conduct such sale under such regulations and upon such just and136
equitable terms as it may prescribe. The sale shall take place on the first Tuesday in the137
month, shall be at the place of public sales in the county in which the property is located,138
and shall be advertised in the official newspaper of the county once a week for four139
consecutive weeks. Neither the business enterprise against whom the action was filed140
pursuant to this Code section nor any affiliate of such business enterprise shall be entitled141
to purchase the interest in residential property at the public sale.142
(3) After a public sale of an interest in residential property is conducted pursuant to this143
Code section, the proceeds derived from such sale shall be paid into the registry of the144
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superior court that ordered such sale. The court shall then disburse the proceeds as145
follows:146
(A) First, proceeds shall be applied to the reasonable costs associated with the public147
sale of the interest in residential property;148
(B) Thereafter, proceeds shall be disbursed to any person with a superior interest in149
such proceeds to that of the business enterprise against whom the action for public sale150
was brought pursuant to this Code section, including, without limitation, any person151
that is owed an outstanding debt or other obligation that is secured by a deed to secure152
debt, security deed, mortgage, security interest, deed of trust, or other lien upon the153
interest in residential property, in order of priority as provided by law; and154
(C) Thereafter, any remaining proceeds shall be disbursed to the business enterprise155
against whom the action for public sale was brought pursuant to this Code section less156
the costs incurred by the Attorney General or district attorney in bringing such action,157
including reasonable attorney's fees.158
(4) The public sale of an interest in residential property pursuant to this Code section159
shall not extinguish any rights of persons in the property other than the business160
enterprise against whom the action for public sale was filed pursuant to this Code section,161
including, without limitation:162
(A) Any person that is owed an outstanding debt or other obligation that is secured by163
a deed to secure debt, security deed, mortgage, security interest, deed of trust, or other164
lien upon the interest in residential property that is not satisfied from the sale proceeds165
disbursed pursuant to paragraph (3) of this subsection; and166
(B) Any person with a leasehold interest in the residential property; provided, however,167
that there shall be no automatic renewal of such leasehold interest and any term in the168
lease agreement providing such automatic renewal shall be void and unenforceable.169
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44-3-264.170
(a) No business enterprise that owns an interest in residential property in violation of171
subsection (a) of Code Section 44-3-261 shall enter into a lease agreement with another172
person for the lease of such residential property.173
(b) A business enterprise that enters into a lease agreement in violation of subsection (a)174
of this Code section shall not be entitled to collect rental payments in connection with such175
lease and any rental payments collected in connection with such lease shall be subject to176
forfeiture in accordance with the procedures set forth in Chapter 16 of Title 9, the 'Georgia177
Uniform Civil Forfeiture Procedure Act.'178
(c) Any person who makes rental payments to a business enterprise in connection with a179
lease agreement that was entered into by a business enterprise in violation of subsection (a)180
of this Code section may bring an action against such business enterprise in any court of181
competent jurisdiction for the return of such rental payments paid by such person.182
(d) Nothing in this Code section shall be construed as impairing or otherwise limiting the183
leasehold interest of a lessee of a residential property pursuant to a lease agreement that184
was entered into by a business enterprise in violation of subsection (a) of this Code section.185
44-3-265.186
A broker who is engaged by a client that is a business enterprise and that is a prospective187
buyer or prospective lessor of an interest in residential property shall timely disclose to188
such client the prohibitions set forth in this article. For purposes of this Code section, the189
terms 'broker,' 'client,' and 'timely' shall have the same meanings as set forth in Code190
Section 10-6A-3."191
SECTION 3.192
This Act shall become effective upon its approval by the Governor or upon its becoming law193
without such approval.194
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SECTION 4.195
All laws and parts of laws in conflict with this Act are repealed.196
H. B. 555 (SUB)
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