Ban Land Grabs in Richmond

Presented by: Hasmik Geghamyan, JD; Hope Williams; Mohini Mookim, JD; Tobias Damm-Luhr, JD

From the Sustainable Economies Law Center

Date: February 3, 2026

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Purpose of Presentation

• Summary of the issue and proposed solution
• How we incorporated feedback from last session
• Summary of revised proposal
• Our evaluation of legal risks
• Encourage Council to direct City Attorney’s office to evaluate legal risks

Reminder: The Crisis of Land Grabs

• Nationwide, housing is increasingly treated as a financial asset
• Increasingly, this issue is coming to Richmond: Corporations and investors are speculating on our homes and communities
• This drives up housing costs and displaces long-time residents

The City Can Buck These Trends...

…by proactively excluding the worst actors from the market.

Responding to Feedback

• What would be a covered residential property:
• Single-family homes
• Duplexes, triplexes, fourplexes, and
• Separately deeded units (e.g., condos & townhomes).

Apartment complexes would NOT be covered.

Responding to Feedback

• Natural person limit:
• Up to 4 covered properties per individual if own > 50% of each.
• Up to 8 covered properties per individual if own < 50% of each.

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Responding to Feedback

• Allowing certain corporate entities and trusts:
• People could create business entities to buy covered real estate, but natural person limit still applies.
• Eligible nonprofits and cooperatives could still use trusts or LLCs, for example, to purchase housing.

Equitable Homeownership

• This ordinance WOULD protect the ability of residents to accumulate generational wealth.
• Just sets limit at four properties per �person (or eight if < 50%).
• Makes homeownership more �fairly accessible.

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We can afford to buy �in our �neighborhood!

How the Proposed Ordinance Works

• Covers only Residential Property, defined as single family homes, duplexes, triplexes, or fourplexes; or separately deeded units such as condominiums or townhouses.
• Only Eligible Purchasers may purchase Residential Property.
• Exempts:
• Affordable‑housing nonprofits
• Limited‑equity housing cooperatives
• Community‑controlled housing cooperatives
• Governmental agencies

How the Proposed Ordinance Works

• Establishes a Natural Person Limit, capping an individual’s ownership at up to four properties when holding majority interest; or up to eight properties when holding minority interest.
• Allows Eligible Purchasers to form trusts, LLCs, corporations, or similar entities to acquire housing.
• Allows non-eligible owners to retain current holdings, while preventing future acquisitions beyond the effective date.

Ordinance Outcomes

• Exempts eligible nonprofits and cooperatives or government so that they can purchase residential properties without limitation.
• Allows individuals to purchase several residential properties in Richmond, but sets a cap after which they cannot purchase more.
• Prohibits certain for-profit entities (e.g. an LLC owned by a for-profit, non-cooperative corporation) from acquiring single family homes in Richmond.

Ordinance Enforcement

• Requires the use of an Eligibility Affidavit at the time of property transfer.
• Requires the party handling escrow and closing (usually, a Title Company) to ensure that this affidavit is completed.
• Provide enforcement tools for the City, including ability to void non‑compliant transactions, issue fines, and require divestiture.

What This Ordinance Would Do

• Stabilize neighborhoods
• Curb profit-seeking speculation
• Support community-based housing
• Block corporate home hoarding
• Create a fairer housing market

Municipal Authority & State Preemption

• Home-rule power under Cal. Const. Art XI Sec. 5 for “municipal affairs.”
• Proposed ordinance does not conflict with any state law
• State preemption risk is reduced where local purpose aligns with statewide housing goals; charter police powers support regulations promoting prosperity, health, and safety

Ordinance is Narrowly Tailored

• Applies to “Covered Transactions” after an effective date
• Limits acquisition to Eligible Purchases and caps natural person ownership
• Includes exemptions

Dormant Commerce Clause

• No facial discrimination; applies the same to in-state and out-of-state buyers
• No residency preference
• Land-use regulation is inherently local; national uniformity generally not required for housing transactions
• Pike test balancing - anti-speculation, neighborhood balancing

Due Process (Substantive Due Process)

• Would-be corporate buyers typically lack a protected property interest in “future” purchases
• Even if property interest were found, ordinance targets a legitimate government interest (housing stability), subject to rational basis test

Equal Protection

• No suspect classification (race, national origin, etc); and wealth is not a protected class, so it is subject to rational basis test
• Neutral ownership-cap rule is reasonably tied to anti-speculation goals

Takings

• Fifth Amendment prohibits government from “taking” private property for public use without just compensation
• Proposed ordinance does not disrupt existing property interests; nor does it deprive owners of economically beneficial uses of their land
• Adjusts the benefits and burdens of economic life to promote the common good (Penn Central)

First-Time Buyers Need Your Support

We humbly ask Richmond City Council to request an evaluation from the City Attorney, so that City staff can develop this common-sense and much needed ordinance.

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Large real estate investors have scaled up acquisition of single family homes in recent years—contributing to housing price increases, displacement pressures, and reduced access to first-time homeownership. The City has the power to buck these trends.

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Thank you for your leadership!