St. Louis sues slow flip investor accused of targeting low-income buyers

ST. LOUIS, Mo. — St. Louis officials have filed a lawsuit in Missouri Circuit Court for the Twenty-Second Judicial Circuit against Bustling Funding, LLC, alleging the company used a “slow flip” housing practice to sell homes to low-income buyers without first obtaining required occupancy permits. The complaint, announced Wednesday, follows a First Alert 4 investigation in which local families described purchasing properties that turned out to be uninhabitable and then facing eviction proceedings. City attorneys say the company’s conduct bypassed essential housing and safety checks that are intended to ensure properties meet minimum habitability standards before families move in. According to the lawsuit, Bustling Funding, LLC targeted buyers with limited resources and then transferred homes that lacked valid occupancy clearances, leaving residents vulnerable to health and safety risks as well as displacement. The city argues that this pattern of conduct violates St. Louis ordinances governing occupancy permits and tenant protections, and it seeks to hold the firm accountable through the courts. By bringing the case, St. Louis officials aim to enforce compliance with existing housing rules and to send a signal that similar “slow flip” arrangements that disregard local regulations will face legal challenge.