Sponsors
The bill protects disaster-affected homeowners, renters, and local communities by pausing institutional property purchases for six months to reduce predatory solicitations and displacement, but it also reduces immediate capital and buyer options for sellers, may slow large-scale rebuilding, and creates administrative and potential legal costs.
Homeowners and renters in federally declared disaster zones are protected from predatory purchase solicitations for six months, including bans on interstate mail and wire solicitations.
Local governments and recovery organizations gain time to coordinate rebuilding and aid without large-scale institutional investor buyouts disrupting local housing availability.
Low-income households are less likely to be rapidly displaced or lose affordable housing after a disaster because institutional purchases are limited for six months.
Financial institutions, developers, and local rebuilding efforts may face slower capital inflows because institutional investors are barred from buying disaster-damaged properties for six months, potentially delaying large-scale renovation and reconstruction.
Homeowners who need to sell quickly after a disaster (to relocate or obtain funds) may face fewer buyers and lower demand for six months, increasing the likelihood of delayed sales or reduced sale prices.
Limiting the restriction to institutional investors could shift demand to smaller buyers or private actors who may still exploit disaster-affected sellers, leaving some survivors vulnerable despite the ban.
Based on analysis of 4 sections of legislative text.
Introduced March 2, 2026 by Adam Schiff · Last progress March 2, 2026
Prohibits large institutional investors from soliciting to buy property located inside a federally declared major disaster area for six months after the declaration. The bill defines an "institutional investor" as any person or entity that owns at least 75 single‑family homes in a taxable year, and bars them from making purchase offers or solicitations by mail, interstate wire, or any other contact method to properties in the disaster area during that six‑month period.