KNOX COUNTY, Tenn. (WATE) — The Knox County Commission is set to consider an ordinance that would aim to limit how many single-family homes can be owned by large entities like hedge funds and private equity firms.
This comes after a similar state law, known as the “Homes not Hedge Funds Act” failed to pass in the Tennessee General Assembly last year. The proposed ordinance — called the “Knox County Homes Not Hedge Funds Ordinance” — cites the failed bill, saying it would give similar protections.
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It argues that large institutional investors could buy many homes and convert them into rental properties. This could lower the supply for everyone else, driving up prices and making it harder for county residents to become homeowners, the ordinance argues.
To try to prevent this, the proposed ordinance would stop any out-of-state people or entities from buying more than 100 single-family homes to use as rental properties. There are several exceptions, including for Tennessee businesses, publicly traded companies worth less than $1 billion, government entities, and affordable housing.
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The ordinance was proposed by Commissioner Damon Rawls and is scheduled for its first reading on Monday.
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President Donald Trump has also expressed support for stopping large institutional investors from buying additional single-family homes…