Home purchase limit placed on private equity corporations in MN under new bill

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(FOX 9) - As housing affordability remains a hot topic among Americans nationally, and Minnesota lawmakers are hoping to address the issue of rising home prices by limiting the number of single-family homes that private equity corporations can own in Minnesota.

Private equity home limit in Minnesota

What we know:

A total of eight lawmakers currently back HF 2687, which if approved by both the Minnesota House and Senate, would create a ban on private equity corporations from owning more than 50 single-family residential homes in Minnesota.

Sponsored by Rep. Esther Agbaje (DFL-Minneapolis), the legislation would also limit corporations' stake in duplexes, triplexes and fourplexes.

The mostly DFL-backed bill also received the support of Rep. Elliott Engen (R-Lino Lakes) as a bipartisan sponsor.

Dig deeper:

Under the current proposal, a "private equity company" refers to an investor or group of investors who buys or sells assets – including companies – to turn a profit, while excluding government agencies, land trust and nonprofits that build or rehab housing, or the mortgage holder of a foreclosed property.

In addition to the restrictions applied to single-family homes, the bill would also prohibit a private equity company from having any stake in duplexes, triplexes, and fourplexes as well.

Landlord database

Why you should care:

Under the proposal, the state would also create and maintain a statewide landlord database to track ownership of properties.

The state’s commissioner of commerce would make the database available to the public for free, and it would allow tenants, or prospective ones, to report rental units or landlords who cannot be found in the system.

Property owners would be required to submit the following information to state officials within 60 days of renting a rental unit in the state:

• The complete legal names of the owners, or group of investors, of the residential building, or who have a direct or indirect interest in its stake;
• The business address of each person who has an ownership interest in the building;
• The name, address, and contact information of the landlord or manager of the property

The information would be required to be updated annually, or again if occupancy status changes.

A property owner would also be barred from altering a lease or increasing rent on any tenant as retaliation for reporting any missing information to the database created.

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Big picture view:

If the commissioner of commerce determines a continuing violation 12 months after a cease and desist letter has been provided to a corporate owner, the commissioner could impose a penalty of $25,000 for each single-family home owned in excess of 50 property limits.

What's next:

The bill will be heard before the Housing Finance and Policy Committee on Wednesday.

If approved, and signed into law by Gov. Walz, the bill would apply to home purchases occurring on or after Aug. 1, 2026.