Connecticut SB 256: AN ACT CONCERNING THE PURCHASE OF RESIDENTIAL PROPERTY BY PRIVATE EQUITY ENTITIES.

Bill Text

LCO  
 
1 of 3 
  
General Assembly  
Substitute Bill No. 256  
February Session, 2026 
 
 
 
 
 
AN ACT CONCERNING THE PURCHASE OF RESIDENTIAL 
PROPERTY BY PRIVATE EQUITY ENTITIES.  
Be  it  enacted  by  the  Senate  and  House  of Representatives  in  General 
Assembly convened: 
 
Section 1. (NEW) (Effective October 1, 2026) (a) For the purposes of this 1 
section: 2 
(1)  (A)  "Private  equity  entity"  means  an  institutional  real  estate 3 
investor  or  an  entity  that  receives  funding  from  an  institutional  real 4 
estate  investor  for  the  purchase  of  a  single-family  residence  or  two-5 
family  residence.  A  loan  provided  in  exchange  for  a  mortgage  of  the 6 
residence  that  is  being  purchased  is  not  considered  funding  for  the 7 
purposes  of  this  subdivision,  provided  such  mortgage is of  a  type for 8 
which members of the general public may apply. 9 
(B) "Private equity entity" does not include: (i) An organization which 10 
is described in Section 501(c)(3) of the Internal Revenue Code of 1986, or 11 
any  subsequent  corresponding  internal  revenue  code  of  the  United 12 
States,  as  amended  from  time  to  time,  and  exempt  from  tax  under 13 
Section 501(a) of said Internal Revenue Code, or (ii) a housing land trust 14 
program described in sections 8-214b to 8-214e, inclusive, of the general 15 
statutes. 16 
(2)  "Institutional  real  estate  investor"  means  an  entity  or  combined 17 

Substitute Bill No. 256 
 
 
LCO      2 of 3 
 
group  that:  (A)  Owns  ten  or  more  single-family  residences  or  two-18 
family residences; (B) manages or receives funds pooled from investors 19 
and acts as a fiduciary with respect to one or more investors; and (C) has 20 
fifty million dollars or more in net value or assets under its management 21 
on  any  day  during  the  taxable  year.  An  entity  is  considered to  own a 22 
single-family  residence  or  two-family  residence  if  it  directly  owns  the 23 
single-family residence or two-family residence or indirectly owns ten 24 
per cent or more of the single-family residence or two-family residence. 25 
(3) "Single-family residence" does not include: (A) Any single-family 26 
residence that is to be used as the principal residence of any person who 27 
has  an  ownership  interest  in  the  private  equity  entity  that  seeks  to 28 
purchase the single-family residence; or (B) any single-family residence 29 
constructed,  acquired  or  operated  with  federal,  state  or  municipal 30 
appropriated funds. 31 
(4)  "Two-family  residence"  does  not  include:  (A)  Any  two-family 32 
residence in which one of the dwelling units is to be used as the principal 33 
residence  of  any  person  who  has  an  ownership  interest  in  the  private 34 
equity entity that seeks to purchase the two-family residence; or (B) any 35 
two-family  residence  constructed,  acquired  or  operated  with  federal, 36 
state or municipal appropriated funds. 37 
(b)  (1)  No  private  equity  entity  may  purchase,  acquire  or  offer  to 38 
purchase  or  acquire  any  interest  in  a  single-family  residence  or  two-39 
family   residence   unless   the   single-family   residence   or   two-family 40 
residence has been listed for sale to the general public for at least ninety 41 
days. 42 
(2) The ninety-day waiting period set forth in subdivision (1) of this 43 
subsection  shall  restart  if  the  seller  changes  the  asking  price  for  the 44 
single-family  residence  or  two-family  residence,  and  a  private  equity 45 
entity  shall  be  prohibited  from  purchasing,  acquiring  or  offering  to 46 
purchase or acquire any interest in the single-family residence or two-47 
family residence until it has been listed for sale to the general public at 48 
the new asking price for at least an additional ninety days. 49 

Substitute Bill No. 256 
 
 
LCO      3 of 3 
 
(3) A private equity entity seeking to purchase a single-family or two-50 
family  residence shall  be  required  to  submit  to  the  seller,  or  anyone 51 
acting as an agent for such seller, prior to the finalizing of such purchase, 52 
a written notice signed by the purchaser stating the following: (A) The 53 
purchaser  is  a  private  equity  entity;  (B)  private  equity  entities  are 54 
required to wait until a single-family residence or two-family residence 55 
has  been  listed  for  sale  for  the  general  public  to  purchase  for  at  least 56 
ninety  days  before  purchasing,  acquiring  or  offering  to  purchase  or 57 
acquire   any   interest   in   the   single-family   residence   or   two-family 58 
residence;  and  (C)  such  private  equity  entity  has  complied  with  the 59 
provisions of this section. 60 
(c)  Any  private  equity  entity  that  violates  the  provisions  of  this 61 
section may be subject to civil damages and penalties in an amount not 62 
exceeding two hundred fifty thousand dollars.