CA AB1240

Prohibits business entities that already own interests in more than 1,000 single-family residential properties from purchasing additional single-family homes and subsequently leasing them out

Exempts nonprofit organizations, entities primarily engaged in new housing construction, and properties built specifically for leasing where the business entity was involved in construction or was the initial purchaser

Authorizes the Attorney General exclusively to enforce violations through civil action, with no liability for sellers who sell to violating entities

Requires courts to impose a $100,000 civil penalty per violation, order the business entity to sell the property to an independent third party within one year of judgment, and award attorney's fees and costs

Defines "single-family residential property" as a single parcel with one detached dwelling unit that has received a certificate of occupancy