Bill to limit hedge funds’ purchases of single-family homes fails after committee tie

RICHMOND, Va. (WRIC) -- A proposal to restrict hedge funds' purchases of single-family homes within a Virginia locality failed to advance after ending in a tie vote at Wednesday's Senate Committee meeting.

Sen. Glen Sturtevant (R-Colonial Heights) introduced Senate Bill 547 to the Senate Committee on General Laws and Technology on Wednesday, Jan. 28, where he emphasized that it applies to single-family homes rather than agriculture or family farms.

Sturtevant previously highlighted SB 547 in his weekly newsletter on Monday, Jan. 26, describing it as one of several “common sense” bills he introduced this session. Aside from SB 547, he also introduced six other pieces of legislation, including SB 552, aimed at tightening oversight of Virginia's large data centers. That legislation advanced to local government for review the afternoon of Tuesday, Jan. 27.

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The bill would establish the Single-Family Homebuyer Protection Act, which would prohibit covered entities -- including hedge funds like Blackstone -- from acquiring an interest in more than five single-family homes within the same locality in the Commonwealth on or after July 1, 2026.

Despite Sturtevant emphasizing this bill would not affect agriculture or family farms, Sen. Timmy French (R-Shenandoah) argued that the scenario in which the bill does not affect those farms is not merely hypothetical. He said the policy could realistically affect people who buy property through corporations -- to purchase a home through a corporation and was prevented from doing so.

Sellers of single-family homes would be prohibited from entering an agreement with a covered entity unless the property has been publicly marketed to Virginia residents and first-time homebuyers for at least 10 calendar days.

Per the bill, SB 547 would also allow the Department of Housing and Community Development to publish aggregated data using existing information, including the number and percentage of single-family homes owned by covered entities by locality, zip code and census tract, as well as trends showing the concentration of that ownership covered entity.

The bill allows the Attorney General to seek an injunction and a civil penalty to restrain any violation of its provisions.

A motion and second to pass by indefinitely was left in a 3-3 tie and failed.