Bill > SB582

This bill aims to address hedge fund ownership of residential properties in Maryland through several key provisions. First, the bill establishes an Excess Ownership of Single-Family Residences Excise Tax, which imposes a 50% tax on hedge funds acquiring single-family residential properties and limits the number of properties such entities can own. Specifically, hedge fund taxpayers (defined as entities with $50 million or more in assets) will be restricted from owning any single-family residences after a four-year phase-out period. Additionally, the bill modifies the real estate sales process by requiring that for the first 30 days a property is on the market, sellers may only accept offers from individuals, community development organizations, nonprofit organizations, or small real estate enterprises (those owning less than 3% of residential properties in a county). The bill also increases the transfer tax rate to 15% for sales of improved single-family residential properties to real estate enterprises that own more than 120 properties or have over $12 million in residential property value. Revenue from the new excise tax will be distributed to a Down Payment and Settlement Expense Loan Program Fund to help eligible homebuyers purchase homes. The legislation is set to take effect on July 1, 2025, and is designed to prevent large institutional investors from dominating the residential real estate market and make homeownership more accessible to individual buyers.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0582?ys=2025RS