This bill creates a new statutory prohibition and amends the Consumer Protection Act (chapter 19.86 RCW). It bars a "business entity" (as defined) that already has an interest in more than 25 single-family residential properties from acquiring additional single-family residential property, and it bars any "investment entity" (as defined) from acquiring any single-family residential property. The bill lists exceptions for nonprofit legal entities, certain rehabilitation or redevelopment activities, limited short-term holding while pursuing permits, and acquisition through new construction. It also includes a rule that an entity that buys an existing single-family property to increase units may not hold a single-family structure longer than five years without applying for building permits. The bill makes violations unfair or deceptive acts under the Consumer Protection Act, amends RCW 19.86.140 to add these violations and penalties, and establishes civil penalties of up to $100,000 per violation plus a court-ordered requirement that the violator sell the offending property to an independent third party within one year of judgment. Enforcement remains under the Attorney General and superior courts pursuant to chapter 19.86 RCW. The Department of Commerce must report recommendations to the legislature by June 30, 2026. Key definitions provided in the text describe "business entity," "investment entity," and "single-family residential property." The bill identifies affected agencies and expressly states sellers are not liable for violations of the new section. The extracted text does not show the new chapter number or exact RCW citation for the new section, does not explain how to aggregate interests across affiliates or successors to count toward the "more than 25" threshold, does not state an effective date, and does not include enforcement procedures beyond the civil penalties and sale requirement.

If enacted, the law would block institutional investors from buying single-family homes in Washington: real estate investment trusts and pooled-investment managers could not acquire any, and any company that already owns more than 25 single-family houses would be barred from adding more. Practically this will force large landlords and investment funds to stop expanding single-family portfolios in the state, shift capital toward new construction or other property types, or rely on the narrow exceptions (nonprofit activity, certain rehab/redevelopment, short-term holding while pursuing permits). Buyers who ignore the rule would face enforcement by the attorney general under the consumer protection law, including fines up to $100,000 per violation and a court-ordered sale of the offending property within a year. The groups most affected are large private real estate firms and institutional investors, which will likely lose acquisition options in Washington, face new compliance and legal risks, and may change investment strategies; nonprofit owners are exempt and sellers are protected from liability. The Department of Commerce must report recommendations by June 30, 2026, which could lead to further policy changes, but key practical details are missing here—there’s no effective date in the text shown, and the bill does not explain how to count properties across affiliates or the full enforcement mechanics—so some timing and compliance questions remain unresolved.