Irvine Home Builder Alters Ownership Rules

California Coastal Communities Inc. amended its certificate of incorporation to prohibit any new purchase of a 5% stake in the company, the Irvine home builder said Thursday.

The amendment also prohibits holders of more than 5% of the company’s stock to increase their holdings except under certain circumstances.

The company said the moves will allow it to continue to use $190 million in tax loss benefits. The IRS would restrict the company’s use of the tax loss carry-forwards if there is an ownership shift of more than 50%, and the company has had an ownership shift of about 38% this year.