Definitions.

Sec. 3. As used in this act: (a) "Excepted purchase" means a purchase of a single-family home that is any of the following: (i) Purchased under a build-to-rent program where the large institutional investor purchases newly constructed single-family homes to be managed as rental properties, whether as communities exclusively of renter-occupied single-family homes or as communities of single-family homes that are both owner- and renter-occupied. (ii) Purchased pursuant to a renovate-to-rent program that meets both of the following requirements: (A) Substantially rehabilitates single-family homes that do not meet structural or core system elements of local building codes. (B) Makes improvements in an aggregate dollar amount of not less than 15% of the purchase price of the single-family home. (iii) Purchased pursuant to a homeownership program that meets all of the following requirements: (A) Requires rental payments and any other fees that are not greater than those collected by the large institutional investor on other similarly situated single-family homes not covered by the eligible homeownership program. (B) Is subject to a contract between the large institutional investor and renter that is considered a consumer credit transaction secured by a dwelling or real property. (C) Provides for positive reporting of rental payments to consumer reporting agencies for any renter who is informed of and opts into the reporting. (D) Requires contribution of meaningful financial support from the large institutional investor, including price concessions, for the purchase of the single-family home by the renter. (iv) Purchased pursuant to a program to boost homeownership that meets all of the following requirements: (A) Provides for positive reporting of rental payments to consumer reporting agencies for any renter who is informed of and opts into the reporting. (B) Provides for a right of first refusal and a 30-day first look period. (C) May provide meaningful financial support from the large institutional investor, including price concessions, to the renter for the purchase of a single-family home by the renter. The meaningful financial support may be for the purchase of the single-family home the renter occupies or another home. (v) Purchased by a mortgage servicer, lender, or other entity that has a legal right to the single-family home, not as a long-term investment strategy, but to mitigate loss or comply with servicing or investor obligations, and only as a result of a foreclosure, a deed-in-lieu of foreclosure, an enforcement of a mortgage, deed of trust, or other security interest, or an operation of law following a borrower default. A single-family home purchased under this subdivision must be disposed of within a commercially reasonable period after acquisition. (b) "Large institutional investor" means an investment fund, corporation, general or limited partnership, limited liability company, joint venture, association, or other for-profit entity that meets all of the following requirements and is not a local, state, tribal, or federal government entity or instrumentality of a local, state, tribal, or federal government entity: (i) Is engaged, in whole or in part, in the business of investing in, owning, renting, managing, or holding single-family homes. (ii) Beginning on the effective date of this act, alone or in concert with 1 or more other entities, directly or indirectly has investment control of more than 100 single-family homes in the aggregate in this state, not including a single-family home purchased as an excepted purchase made after the effective date of this act. (iii) Manages or has a net value of $375,000,000.00 or more at any point during the taxable year the investor purchases or seeks to purchase a single-family home in this state. (c) "Purchase" means to purchase, transfer, or otherwise acquire a single-family home, including through merger, acquisition, construction, foreclosure, or bulk purchase, whether or not for cash consideration. (d) "Single-family home" means a structure that contains 2 or fewer dwelling units that are each intended for residential occupancy by a single household. Single-family home does not include a manufactured home. As used in this subdivision, "manufactured home" means that term as defined in 42 USC 5402.