Bill > S01572

This bill imposes a significant tax and regulatory mechanism targeting large investment entities (primarily hedge funds) that own multiple single-family residential properties. Specifically, the bill creates an excise tax on hedge funds and similar asset managers with over $50 million in assets that own more than a progressively decreasing number of single-family residences over time. For newly acquired properties, these entities will be taxed 50% of the property's fair market value, and they will face additional taxes of $50,000 per excess property beyond a declining threshold (starting at 90% of their existing portfolio and reducing to 0% after nine years). The bill also establishes a "housing down payment trust fund" that will collect these tax revenues and use them to provide grants to state housing finance agencies, which will then offer down payment assistance to families purchasing homes, with priority given to properties sold by these large investment entities. The goal appears to be discouraging institutional investors from holding large numbers of residential properties and helping more families become homeowners by providing financial assistance for down payments. The bill includes detailed definitions and reporting requirements to ensure compliance and transparency in the implementation of these new regulations.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S1572