Bill > S3754

This bill, the Affordable Housing and Homeownership Protection Act of 2026, amends the Internal Revenue Code of 1986 to impose a new tax on certain large investors who purchase single-family homes, aiming to protect affordable housing and homeownership. Specifically, it introduces a tax on "covered investors" who purchase "covered home purchases," which are defined as single-family homes. The tax rate varies based on the investor's size: 1% for "medium-sized investors" (owning 16-25 homes), 3% for "large investors" (owning 26-100 homes), and 5% for "giant investors" (owning over 100 homes). These thresholds are determined by the number of single-family homes owned as of the last day of the taxable year, with rules in place to aggregate ownership among related entities and individuals, though new construction is generally excluded unless it replaces a home on the same site. Certain entities are exempt from this tax, including tax-exempt organizations focused on affordable housing, government entities, public housing authorities, land banks, and community land trusts. The bill also mandates reporting requirements for covered investors regarding their home ownership and purchases. Revenues generated from this tax will be allocated: 65% to the Housing Trust Fund and 35% to the Capital Magnet Fund, both of which support affordable housing initiatives. Additionally, the bill adjusts the minimum funding for the Housing Trust Fund in small states.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3754/all-info