If enacted, the bill will amend Chapter 75 of the North Carolina General Statutes by introducing regulations that prohibit entities from purchasing single-family homes in populous counties (those over 150,000 residents) if they already own a large number of homes used primarily for rental. Specifically, it imposes a 100-home limit on the ownership for entities before they may acquire more properties in these regions. This measure is projected to enhance access to home ownership for individuals, thereby assisting in balancing the housing market.
Summary
House Bill 114, titled 'Home Ownership Market Manipulation', is aimed at curbing the excessive buying of single-family homes by business entities for use as rental properties. The bill recognizes the pressures of urban growth in North Carolina, specifically addressing concerns that significant corporate acquisitions of residential homes are inflating housing costs and reducing availability for individual home buyers. Its intent is to protect the opportunities for average citizens to engage in home ownership, which is pivotal for wealth building and community stability.
Sentiment
The sentiment around HB 114 appears to be mixed. Supporters, including various homeowners and local advocacy groups, view the bill favorably as a necessary intervention to combat market manipulation and protect local residents from being priced out of the housing market. On the other hand, critics, particularly from real estate investment sectors, argue that it could deter investment in the housing market, potentially leading to negative impacts on the rental market and overall real estate development.
Contention
Notable points of contention in discussions surrounding the bill include the definition of 'market manipulation' and the feasibility of enforcing ownership quotas. Critics are concerned that the regulations may disproportionately affect rental housing availability and investors who contribute to local economies. Moreover, the enforcement mechanisms, which allow civil actions against violators, could also lead to legal complexities. The potential for significant civil penalties for non-compliance adds another layer of debate regarding the balance between regulation and free enterprise.
Establishing the Pennsylvania Lease Guaranteed Purchase Option Home Ownership Program and the Pennsylvania Lease Guaranteed Purchase Option Home Ownership Program Fund.