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HB 3167

Prohibits an institutional investor to purchase any covered residential property and gives the attorney general enforcement authority

2026 Regular Session Introduced by Anthony Ealy

Missouri HB3167 bans institutional investors from buying or holding title to most small residential properties, creating a registry, enforcement, and divestiture rules.

Referred: Emerging Issues(H)
#businessandcommerce #corporations #housing #secretaryofstate
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Bill Summary · HB 3167

Overview

Missouri House Bill 3167 (HB 3167), introduced in the 2026 session, would prohibit institutional investors from purchasing or holding title to certain residential properties in Missouri and create enforcement and oversight mechanisms. The bill defines who qualifies as an institutional investor, what properties are covered, and outlines penalties, exemptions, registries, and enforcement roles for state agencies.

Main purpose and intent

  • To restrict institutional investors from acquiring and holding title to certain residential properties in Missouri.
  • To protect or prioritize affordable housing and resident ownership by ensuring such properties are available to individual owners, nonprofit affordable housing providers, and certain public or small-scale entities.
  • To establish a regulatory and enforcement framework, including a registry, penalties, and potential private rights of action for displaced residents.

Key provisions and changes

  • Definition of terms
    • Institutional investor: entities such as hedge funds, private equity firms, REITs, corporations, partnerships, or LLCs that own more than 50 covered residential properties in the United States or manage assets for others with over $100 million in real estate investments.
    • Covered residential property: includes a single-family home, a two- to four-unit residential building, or any residentially zoned parcel with up to four dwelling units.
    • Community-based entity: nonprofits, community development corporations, or community land trusts focusing on affordable housing or resident ownership.
  • Prohibition on acquisitions
    • After August 28, 2026, institutional investors and any of their subsidiaries/affiliates/shells/special-purpose entities cannot purchase, acquire, or take title to covered residential property in Missouri.
  • Transfers and title
    • Any transfer by an institutional investor or its related entities that violates the prohibition is void; title reverts to the prior owner for resale to an eligible buyer.
  • Exemptions
    • Nonprofit affordable housing providers or land trusts.
    • Public housing authorities.
    • Small businesses or local partnerships owning fewer than 50 covered residential units statewide.
    • Financial institutions holding foreclosed properties for resale within 12 months of acquisition.
  • Registry and data sharing
    • The Department of Economic Development (Department) must coordinate with county recorders of deeds (or their portals) to create and maintain a registry of institutional investors and their residential holdings and to review deeds/titles for compliance.
    • Every January 31, 2027, and every six months thereafter, the Department must provide the registry data to the Missouri Housing Development Commission in a format determined by the Department. Data-sharing contracts may be used to protect confidentiality.
  • Enforcement
    • The Attorney General’s Office is authorized to enforce the provisions, including bringing civil actions and forfeiture proceedings where violations occur.
    • Violations can trigger civil penalties up to $50,000 per property and mandatory divestiture (sale, termination of lease, or other disposition) of unlawfully obtained properties.
    • Residents displaced by a violation may bring private civil actions for injunctive relief and actual damages.
  • Regulatory framework
    • The Department must promulgate rules to administer the section, including compliance reporting standards, verification/audit procedures for ownership, and resale guidelines for divested homes to individuals or community-based buyers.
    • Rules and actions must comply with Missouri’s Administrative Procedure and rulemaking provisions, with nonseverability provisions ensuring the rulemaking authority remains valid unless constitutional constraints intervene.

Who is affected

  • Directly affected: institutional investors and their subsidiaries/affiliates/shells/SPVs that own or manage covered residential properties.
  • Indirectly affected: residents living in or seeking to purchase properties in covered categories, nonprofit housing providers, community land trusts, and public housing authorities.
  • Neutral or exempted: small local entities with fewer than 50 covered residential units, banks/financial institutions with foreclosed properties held for resale within 12 months, and nonprofit/public housing actors listed in exemptions.

Procedural and timeline aspects

  • Effective prohibition date: August 28, 2026.
  • Registry and reporting timeline: initial data-sharing and registry implementation by the Department, with mandated data delivery to the Missouri Housing Development Commission starting January 31, 2027, and continued every six months.
  • Enforcement: authority granted to the Attorney General’s Office; civil actions and penalties apply upon violation.
  • Rulemaking: the Department to issue necessary rules and regulations, with standard statutory protections for rulemaking.

Potential implications

  • Reduced institutional ownership of small residential properties in Missouri, potentially increasing availability of homes for individual buyers and community-based entities.
  • Increased administrative oversight of real estate transactions involving large-scale investors.
  • Possible impacts on markets where institutional investors hold significant portfolios, necessitating divestiture or sale of affected properties.
  • Creation of a formal pathway for residents harmed by violations to seek relief and damages.

Compiled from official sources — confirm details with the bill’s official record.

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