California AB1240 prohibits business entities owning over 1,000 single-family residential properties from leasing additional properties.

California AB1240 adds Title 8 to the Civil Code, prohibiting business entities with more than 1,000 single-family residential properties from purchasing, acquiring, or leasing additional properties. Exemptions apply to properties constructed for leasing where the entity has an ownership interest in the construction or is the initial purchaser. The Attorney General can bring a civil action for violations, with successful cases resulting in penalties, property sale to an independent third party, and other court-ordered relief.

California AB1240 prohibits business entities owning over 1,000 single-family residential properties from leasing additional properties.

California AB1240 adds Title 8 to the Civil Code, prohibiting business entities with more than 1,000 single-family residential properties from purchasing, acquiring, or leasing additional properties. Exemptions apply to properties constructed for leasing where the entity has an ownership interest in the construction or is the initial purchaser. The Attorney General can bring a civil action for violations, with successful cases resulting in penalties, property sale to an independent third party, and other court-ordered relief.