The HOPE for Homeownership Act imposes new taxes on large investment firms—including hedge funds, private equity partnerships, and real estate investment trusts—that own single-family homes. The bill creates two main penalties: a 15 percent excise tax (minimum $10,000) when these firms purchase a home, and an annual $5,000-per-unit tax for holding homes beyond permitted thresholds. Firms with $50 million or more in assets must gradually reduce their single-family home portfolios over nine years, starting at 90 percent of current holdings in the first year and dropping by 10 percentage points annually until reaching zero in year ten, though smaller investors get to retain at least 50 homes. Additionally, the bill eliminates mortgage interest and depreciation deductions for covered investors on these properties. The legislation takes effect in the 2025 tax year and is designed to discourage corporate investment in residential properties and increase housing availability for individual homebuyers.
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