Bill > S788

This bill introduces the HOPE (Humans over Private Equity) for Homeownership Act, which aims to discourage large hedge funds and investment entities from acquiring and holding excessive numbers of single-family residential properties. The bill establishes a new excise tax framework targeting hedge fund taxpayers with $50 million or more in net value or assets under management. The tax structure imposes a 15% levy or $10,000 (whichever is greater) on the purchase of newly acquired single-family residences, and creates a progressive penalty system that gradually reduces the maximum number of residential units these entities can own over time. Specifically, in the first year after the law's enactment, hedge fund taxpayers would be limited to owning 90% of their existing residential properties, with this percentage decreasing by 10% each subsequent year until reaching a hard cap of 50 total units after nine years. Additionally, the bill disallows mortgage interest deductions and depreciation tax benefits for properties owned by these covered taxpayers, further disincentivizing large-scale residential property accumulation. The legislation is designed to help reduce corporate ownership of housing and potentially improve housing affordability for individual homebuyers by making it financially less attractive for large investment entities to hold numerous residential properties.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/788/all-info