Ban Land Grabs in Richmond
Presented by: Hasmik Geghamyan, JD; Hope Williams;
Mohini Mookim, JD; T obias Damm-Luhr, JD
From the Sustainable Economies Law Center
Date: January 27, 2026
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. • 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.
Responding to Feedback
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.
• 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.
Equitable Homeownership
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 T ailored
• 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
T akings
• 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.
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.
Thank you for your leadership!