SoapZone Community: Politics Message Board

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Regarding housing, I think one other thing should have been included - a ban on corporations buying up the housing stock. Building new "starter" housing stock will only be effective if actual homeowners buy those homes rather than corporations.

There is a bill on congress right now that most likely won't get passed by the end of the session. That bill should be rolled into whatever bill includes funds for first time home buyers. I especially like it because it can be used to fund the first time home buyer incentives.

The most prominent of these bills was introduced in December 2023: the End Hedge Fund Control of American Homes Act, introduced in the Senate by Oregon Sen. Jeff Merkley with companion legislation introduced in the House by Rep. Adam Smith.

The bill, which has been referred to committee but has yet to receive a vote, would effectively ban hedge funds from owning any single-family homes within 10 years of its passage.

The Merkley/Smith bill as written would force large corporate owners to divest from their current holdings of single-family homes over 10 years. An applicable entity that manages investor funds, is a fiduciary of the funds, and purchases new homes would be taxed half the cost of each additional home. Entities that fail to divest homes they own in excess of the 50-home cap would be taxed $50,000 for each excess home. And hedge funds, specifically, would pay that fine if they own any homes at all (with 10 years to divest of them).

The taxes would go toward a new housing trust fund for downpayment assistance for aspiring homeowners.

The legislation defines a “hedge fund” as any taxpayer with $50 million or more of assets under management. There are exemptions for nonprofits or any organization that primarily builds or rehabilitates single-family housing.