NEWS: Sen. Schiff Introduces Bill to Crack Down on Giant Corporate Investors Snatching Up Properties Following Natural Disasters

Washington, D.C. - Today, U.S Senator Adam Schiff (D-Calif.) is introducing new legislation to restrict giant corporate investors such as private equity firms from purchasing properties within areas impacted by major natural disasters. The legislation comes as Congress is considering a major bipartisan housing bill, and as the Trump administration has called to ban institutional investors from buying single-family homes and for Congress to crack down on this practice.

"Across the country, Americans have witnessed giant corporate landlords and Wall Street firms buying up droves of lots in the wake of natural disasters with artificially low offers that take advantage of vulnerable families. I'm proud to introduce legislation to help restrict giant corporate investors from purchasing properties in impacted areas. It's time we crack down on this predatory practice, and I urge my colleagues to include this legislation in the bipartisan housing package currently being considered by Congress," said Senator Schiff.

Senator Schiff's bill comes as neighborhoods across the country, including in the aftermath of last year's Los Angeles wildfires, have witnessed giant investors buying up properties with dramatically lower offers for land than what would otherwise be market price. The practice unfairly drives up recovery costs and shuts families out of their own communities - adding to the challenges Americans already face because of the disaster itself. Of 289 properties sold in Altadena after the Eaton fire, 168 - nearly two thirds - were bought by limited liability investors and private equity firms.

Schiff's bill would specifically prohibit institutional investors that own 75 or more single-family homes from making any offers to purchase properties, including a lot, parcel, or home, for six months within the area affected by the major disaster.

The full text of the bill is available here.

###