Protecting American Homes from Hedge Funds Act

This bill would create a federal tax on investment funds that pool money from investors and own single-family homes (properties with 1 to 4 units). Covered funds would pay a tax equal to 50 percent of a home's value when they buy a new single-family home, and a $50,000-per-home yearly tax if they do not sell off their existing homes on a schedule that shrinks their allowed holdings by 10 percent of their starting count each year over about ten years. Funds with $50 million or more in assets would get no 50-home allowance. Covered funds liable for the tax could not deduct mortgage interest or depreciation on these homes, and Fannie Mae, Freddie Mac, and Ginnie Mae would be barred from newly backing certain mortgages held by large investors. Tax money would go to a new trust fund for federal grants to state housing finance agencies for down payment help for buyers earning up to 120 percent of area median income.

Full text and official record on Congress.gov

Sponsors

• Adam Smith Democrat sponsor
• 3 cosponsors