HOPE (Humans over Private Equity) for Homeownership Act

Key Points

• The bill would impose a 15% excise tax on hedge funds every time they buy a single-family home or small residential property with up to 4 units. This applies to any entity managing $50 million or more in pooled investor funds.
• Hedge fund taxpayers are defined as partnerships, corporations, or real estate investment trusts that manage pooled investor funds and have at least $50 million in net value or assets under management. Nonprofits and homebuilders who sell homes in the ordinary course of business are exempt.
• Starting in 2031, hedge fund taxpayers would lose key tax breaks: they could no longer deduct mortgage interest or claim depreciation on single-family rental homes. This makes it significantly more expensive for large firms to hold and rent out houses.
• Beginning in 2036, hedge fund taxpayers that are corporations would face a 5-percentage-point increase in their corporate tax rate, adding another financial penalty on top of the excise tax and deduction losses.
• Introduced by Sens. Merkley and Hawley, the bill enjoys bipartisan sponsorship — a progressive Democrat and a conservative Republican united by the goal of making it harder for Wall Street firms to outbid regular families for starter homes.

Votes

No votes have been recorded for this legislation yet.

Related Bills

No related bills have been identified yet.