Amends and adds to existing law to prohibit the purchase of single-family homes by institutional investors.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 947 BY WAYS AND MEANS COMMITTEE AN ACT1 RELATING TO IDAHOMES FOR IDAHO CITIZENS NOT CORPORATIONS; AMENDING CHAPTER2 1, TITLE 55, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 55-116, IDAHO3 CODE, TO ESTABLISH PROVISIONS PROHIBITING THE PURCHASE OF SINGLE-FAM-4 ILY HOMES BY INSTITUTIONAL INVESTORS, TO DEFINE TERMS, TO PROVIDE FOR5 ENFORCEMENT, AND TO PROVIDE FOR IMMUNITY FROM LIABILITY; AMENDING SEC-6 TION 55-103, IDAHO CODE, TO REVISE A PROVISION REGARDING EXCEPTIONS TO7 WHO MAY OWN PROPERTY AND TO MAKE A TECHNICAL CORRECTION; AND DECLARING8 AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.9

Be It Enacted by the Legislature of the State of Idaho:10

SECTION 1. That Chapter 1, Title 55, Idaho Code, be, and the same is11 hereby amended by the addition thereto of a NEW SECTION, to be known and des-12 ignated as Section 55-116, Idaho Code, and to read as follows:13 55-116. IDAHOMES FOR IDAHO CITIZENS NOT CORPORATIONS. (1) On and after14 July 1, 2026, an institutional investor, as defined in this section, shall15 not be permitted to purchase or acquire a controlling interest in the owner-16 ship of a single-family home property in Idaho.17 (2) For the purpose of this section:18 (a) "Home builder" means an entity whose primary business is the con-19 struction of new single-family homes that are offered for sale to indi-20 vidual buyers and are not for long-term rental purposes.21 (b) "Institutional investor" means any corporation, limited liabil-22 ity company, limited partnership, partnership, or other corporate23 structure with more than one (1) member that purchases or otherwise24 acquires title or ownership to single-family dwellings for the purpose25 of profit. "Institutional investor" does not include the following,26 regardless of how they hold real property: a home builder, remodeler,27 natural person, marital community, family trust or estate, nonprofit,28 community land trust, tribal housing, or a foreclosure or deed-in-lieu29 acquisition by a lender or servicer with a mandatory disposition win-30 dow.31 (c) "Single-family home" means a residential structure that is in-32 tended for occupancy by one (1) family, such as a detached house.33 (3) An institutional investor that acquires, directly or indirectly,34 control of a single-family home property on or after July 1, 2026, by de-35 vise, by descent, through the enforcement of security interests, or through36 the collection of debts, must sell, transfer, or otherwise divest itself of37 such property within one hundred eighty (180) days of acquiring control of38 the property.39 (4) If an institutional investor does not divest the single-family home40 property as required by this section, the attorney general shall commence an41 action in the district court within the jurisdiction of the property.42

2 (5) If the property is held in violation of this section, the district1 court shall order that the property be sold through judicial foreclosure.2 Proceeds of the sale shall be disbursed to lienholders, in the order of pri-3 ority, except for liens that, under the terms of the sale, are to remain on4 the property.5 (6) The responsibility for determining whether an institutional in-6 vestor is subject to the provisions of this section rests solely with the7 institutional investor and the attorney general. An individual or entity8 who is not an institutional investor shall not be required to determine or9 inquire whether another person or entity is or may be subject to the provi-10 sions of this section and shall bear no civil or criminal liability under11 this section.12

SECTION 2. That Section 55-103, Idaho Code, be, and the same is hereby13 amended to read as follows:14 55-103. WHO MAY OWN PROPERTY. (1) Except as provided in subsection (2)15 or (3) of this section or as otherwise provided in this chapter, any person,16 whether citizen or alien, may take, hold, and dispose of property, real or17 personal.18 (2) Notwithstanding any provision of law to the contrary, on and af-19 ter the effective date of this subsection, a foreign government or a foreign20 state-controlled enterprise shall not purchase, acquire, or hold any con-21 trolling interest in agricultural land, forest land, water rights, mining22 claims, or mineral rights in the state of Idaho. This subsection does not23 apply to any interest in agricultural land, forest land, water rights, min-24 ing claims, or mineral rights acquired by a foreign government or foreign25 state-controlled enterprise prior to the effective date of this subsection26 or to any foreign pension fund.27 (3) Notwithstanding any other provision of law to the contrary, a for-28 eign principal from a foreign adversary shall not purchase, acquire, or hold29 any controlling interest, except a de minimis indirect interest, in agricul-30 tural land, water rights, mining claims, or mineral rights in the state of31 Idaho. A foreign principal has a de minimis indirect interest if any owner-32 ship is the result of the foreign principal's ownership of registered equi-33 ties in a publicly traded company owning the land and if the foreign princi-34 pal's ownership in the company is either:35 (a) Less than five percent (5%) of any class of registered equities or36 less than five percent (5%) in the aggregate in multiple classes of reg-37 istered equities; or38 (b) A noncontrolling interest in an entity controlled by a company that39 is both registered with the United States securities and exchange com-40 mission as an investment advisor under the investment advisers act of41 1940, as amended, and is not a foreign entity.42 (4) A foreign principal that directly or indirectly owns or otherwise43 controls agricultural land, water rights, mining claims, or mineral rights44 in the state of Idaho must sell, transfer, or otherwise divest itself of45 the agricultural land, mining claims, or mineral rights within one hundred46 eighty (180) days of the effective date of this act.47 (5) A foreign principal that directly or indirectly owns or acquires48 agricultural land, water rights, or any interest in such land in this state49

3 must register with the Idaho state department of agriculture within sixty1 (60) days of the effective date of this act or the date of acquisition,2 whichever is latest. The department must establish a form for such registra-3 tion, which, at a minimum, must include all of the following:4 (a) The name of the owner of the agricultural land, water rights, or the5 owner of the interest in such land;6 (b) The address of the agricultural land, the property appraiser's par-7 cel identification number, and the property's legal description; and8 (c) The number of acres of agricultural land.9 (6) A foreign principal that directly owns or acquires mining claims10 or mineral rights or any interest in such claims in this state must register11 with the Idaho department of lands and the Idaho secretary of state within12 sixty (60) days of the effective date of this act or the date of acquisition,13 whichever is latest. The foreign principal shall be registered to do busi-14 ness with the Idaho secretary of state's office. The Idaho department of15 lands shall provide the form for such registration, which at a minimum must16 include the following:17 (a) The mineral lease number with lease length and premises by parcel18 and acres; and19 (b) The application for use of state land by the individual or legal en-20 tity.21 (7) Notwithstanding the provisions of subsection (3) of this section, a22 foreign principal from a foreign adversary country may acquire agricultural23 land, mining claims, or mineral rights on or after July 1, 2025, by devise24 or descent, through the enforcement of security interests, or through the25 collection of debts, provided that the foreign principal sells, transfers,26 or otherwise divests itself of the agricultural land, water rights, mining27 claims, or mineral rights within one hundred eighty (180) days of acquiring28 the agricultural land, mining claims, or mineral rights.29 (8) The provisions of subsections (3) through (7) of this section shall30 not apply to an entity that has a national security agreement with the com-31 mittee on foreign investment in the United States as of July 1, 2025, and32 maintains such national security agreement.33 (9) The Idaho state department of agriculture and department of lands34 shall adopt rules, subject to legislative approval, to implement the provi-35 sions of this section.36 (10) The responsibility for determining whether an entity is subject to37 this section rests solely with the foreign entity, the attorney general, or38 any qualifying whistleblower, and no other individual or entity. An indi-39 vidual or entity who is not a foreign entity shall not be required to deter-40 mine or inquire whether another person or entity is or may be subject to the41 provisions of this section and shall bear no civil or criminal liability un-42 der this section.43 (11) If a foreign principal from a foreign adversary country does not44 divest the public or private lands, mining claims, or mineral rights as re-45 quired by this section, the attorney general shall commence an action in the46 district court within the jurisdiction of the public or private land, mining47 claims, or mineral rights.48

4 (12) If the public or private land is held in violation of this sec-1 tion, the district court shall order that the public or private land be sold2 through judicial foreclosure.3 (13) Proceeds of the sale shall be disbursed to lienholders, in the or-4 der of priority, except for liens that, under the terms of the sale, are to5 remain on the public or private land.6 (14) Any individual may act as a whistleblower and provide a referral to7 the office of the attorney general for violations of this section.8 (15) If a whistleblower referral results in a divestiture of land, min-9 ing claims, or mineral rights or other assets held in violation of this sec-10 tion, the whistleblower shall be entitled to a reward equal to thirty percent11 (30%) of the proceeds of the land, mining claims, mineral rights, or asset12 sale resulting from a violation of this section after payment of lienhold-13 ers. Proceeds of the sale shall be disbursed in the following order:14 (a) To bona fide lienholders, in order of priority, except for liens15 that, under the terms of the sale, are to remain on the property;16 (b) The payment of authorized costs of the sale, including all approved17 fees and expenses of the referee and any taxes and assessments due;18 (c) The payment, in an amount approved by the court, to the attorney19 general for reimbursement of investigation and litigation costs and ex-20 penses;21 (d) To whistleblowers; and22 (e) To the restricted foreign entity.23 (16) The whistleblower enforcement provision takes effect one hundred24 eighty (180) days after the enforcement date of this section.25 (17) As used in this section:26 (a) "Agricultural land" shall have the same meaning as "land actively27 devoted to agricultural purposes" as provided in section 63-604, Idaho28 Code.29 (b) "Controlling interest" means:30 (i) Possession of more than fifty percent (50%) of the ownership31 interest in an entity; or32 (ii) A percentage of ownership interest in an entity that is fifty33 percent (50%) or less if a foreign government actually directs the34 business and affairs of the entity without the requirement or con-35 sent of any other party.36 (c) "Foreign adversary" means any foreign government or foreign non-37 government person engaged in a long-term pattern or serious instances38 of conduct significantly adverse to the national security of the United39 States or security and safety of United States persons as determined un-40 der 15 CFR 791.4, as it existed on January 1, 2025.41 (d) "Foreign government" means a government other than the federal gov-42 ernment of the United States or the government of any state, political43 subdivision of a state, territory, federally recognized Indian tribe,44 or possession of the United States.45 (e) "Forest land" means privately owned or state-owned land being held46 and used primarily for the continuous purpose of growing and harvesting47 trees of a marketable species. Having met the above criteria, forest48 land includes:49

5 (i) Forest land is land evidenced by present use and silvicul-1 tural treatment.2 (ii) Forest land is land that has a dedicated use that is further3 evidenced by a forest land management plan that includes eventual4 harvest of the forest crop.5 (iii) Forest land is land bearing forest growth or land that has6 not been converted to another use.7 (iv) Forest land is land that has had the trees removed by man8 through harvest, including clear-cuts or by natural disaster,9 such as but not limited to fire, and which within five (5) years af-10 ter harvest or initial assessment will be reforested as specified11 in the forest practices act, chapter 13, title 38, Idaho Code.12 (f) "Foreign pension fund" means a trust, corporation, or other entity13 created or organized under the law of a country other than the United14 States to provide retirement or pension fund benefits. However, the15 term "foreign pension fund" shall not include any trust, corporation,16 or other entity that is owned by or subject to a controlling interest of17 a sovereign wealth fund.18 (g) "Foreign principal" means:19 (i) The government or any official of the government of a foreign20 adversary;21 (ii) A political party or member of a political party or any subdi-22 vision of a political party of a foreign adversary;23 (iii) A partnership, association, corporation, organization, or24 other combination of persons organized under the laws of or having25 its principal place of business in a foreign adversary, or a sub-26 sidiary of such entity, owned or controlled wholly or in part by27 any person, entity, or collection of persons or entities of a for-28 eign adversary;29 (iv) Any person who is domiciled in a foreign adversary and is not30 a citizen or lawful permanent resident of the United States; and31 (v) Any person, entity, or collection of persons or entities de-32 scribed in this paragraph having a controlling interest in a part-33 nership, association, corporation, organization, trust, or any34 other legal entity or subsidiary formed for the purpose of owning35 real property.36 (h) "Mineral right" shall have the same meaning as provided in section37 47-701, Idaho Code.38 (i) "Mining claim" means a portion of land containing minerals that a39 miner has a right to occupy and possess for the purpose of extracting40 minerals.41 (j) "State-controlled enterprise" means a business enterprise, how-42 ever denominated, sovereign wealth fund, or state-backed investment43 fund in which a foreign government has a controlling interest.44 (k) "Water right" shall have the same meaning as provided in section45 42-230, Idaho Code.46 (4)(a) (18)(a) The attorney general shall investigate acquisitions of47 interests in real property reasonably suspected of violating the prohi-48 bitions provided for in subsection (2) of this section upon receipt of a49 complaint alleging such violation.50

6 (b) The attorney general shall enforce the prohibitions provided for1 in subsection (2) of this section for any interest in land, rights, or2 claims held in violation of the provisions of subsection (2) of this3 section by petitioning the district court for an order and judgment4 that: finds such violation; appoints a receiver; and authorizes the5 receiver to sell such land, rights, or claims. For a receivership pro-6 ceeding under this section:7 (i) Proceeds of the sale shall be disbursed to lienholders, in8 order of priority, except for liens that, under the terms of the9 sale, are to remain on the land, rights, or claims;10 (ii) At the receivership sale, lienholders shall be permitted to11 have a credit bid; and12 (iii) Any excess proceeds shall be disbursed to the owner of record13 of the real property.14 (c) Upon the commencement of an action provided for in this section, the15 attorney general shall promptly file a notice of lis pendens with the16 court.17 (d) Upon the entry of a court order appointing a receiver and authoriz-18 ing the receiver's powers to sell the property pursuant to the provi-19 sions of this section, the attorney general shall promptly record a copy20 of the court order in the office of the county where the property is lo-21 cated that is responsible for the maintenance of property records.22 (e) No title to land, rights, or claims shall be invalid or subject to23 divestiture due to a violation of the provisions of this section by any24 former owner or other individual or entity having formerly held or owned25 an interest in the real property.26 (f) Divestiture of a foreign government's or foreign state-controlled27 enterprise's title under this section shall not be a basis to void,28 invalidate, or otherwise extinguish any bona fide mortgage, lien, or29 other interest granted by, through, or under the foreign government or30 foreign state-controlled enterprise.31 (g) No person or entity that is not a foreign government or a foreign32 state-controlled enterprise shall bear any civil or criminal liability33 for failing to determine or to make an inquiry about whether an indi-34 vidual or other entity is a foreign government or a foreign state-con-35 trolled enterprise.36

SECTION 3. An emergency existing therefor, which emergency is hereby37 declared to exist, this act shall be in full force and effect on and after38 July 1, 2026.39