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

203706 February Session, 2026 Substitute Senate Bill No.

256 Senate, MarchApril 26,21, 2026 The Committee on HousingJudiciary reportedreportedthrough through SEN.

MARXWINFIELD of the 20th10th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

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203706 Section 501(a) of said Internal Revenue Code, or (ii) a housing land trust program described in sections 8-214b to 8-214e, inclusive, of the general statutes.

and (C) has thirtyfifty million dollars orormore more in net value or assets under its management on any day during the taxable year.

(2) The ninety-day waiting period set forth in subdivision (1) of this subsection shall restart if the seller changes the asking price for the single-family residence or two-family residence, and a private equity sSB256 / File No.

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203706 single-family residence or two-family residence, and a private equity entity shall be prohibited from purchasing, acquiring or offering to purchase or acquire any interest in the single-family residence or two- family residence until it has been listed for sale to the general public at the new asking price for at least an additional ninety days.

Section 1 October 1, 2026 New section StatementJUD ofJoint LegislativeFavorable Commissioners:Subst.

Subsec.

(b)(3) was reworded for clarity.

HSG Joint Favorable Subst.

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203706 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

None Explanation The bill prohibitslimits private equity companiescompanies' fromability purchasingto purchase or acquiringacquire certain residences and subjectssubjects' violators to civil damages and penalties of up to $250,000 resulting in a potential revenue gain to the state to the extent violations occur.

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203706 OLR Bill Analysis sSB 256 AN ACT CONCERNING THE PURCHASE OF RESIDENTIAL PROPERTY BY PRIVATE EQUITY ENTITIES.

Under the bill, a “private equity entity” is an (1) institutional real estateinvestorestateinvestormeetingcertaincriteria(suchasowningatleast10single- meetingcertaincriteria(suchasowningatleast10single- or two-family residences and managing at least $30$50 million in assets) or (2) entity that receives funding from one for purchasing a single- or two- family residence, excluding a residential mortgage loan of the type for which members of the public can apply.

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203706 The bill authorizes the attorney general to bring a civil action on the state’sbehalfseekinginjunctiveanddeclaratoryreliefandcivildamages and penalties against a private equity entity that violates the bill’s provisions.

manages at least $30$50 million in net value or assets on any day during the taxable year.

21st21stCentury Century ROAD to Housing Act On March 12, 2026, the U.S.

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203706 indirectly purchase) any single-family home and (2) establishes various requirements related to divestment.

Legislative History The Senate referred the bill (File 203) to the Judiciary Committee, which reported out a substitute that increased, from $30 million to $50 million, the amount of net value or assets an entity or combined group must manage to be considered an “institutional real estate investor.” COMMITTEE ACTION Housing Committee Joint Favorable Substitute Yea 13 Nay 6 (03/10/2026) Judiciary Committee Joint Favorable Substitute Yea 34 Nay 6 (04/10/2026) sSB256 / File No.

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