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.