Sponsors (21)
Introduced February 24, 2026 by Elizabeth Warren · Last progress February 24, 2026
The bill shifts tax benefits away from large institutional owners and toward HOME-funded rental production and buyer assistance to expand affordable housing and protect local ownership, but it raises taxes and compliance costs for some property owners, risks reducing private investment in rental housing, and creates funding volatility and legal uncertainty.
Low-income and extremely low-income renters will gain more affordable rental units because 80% of transferred tax-savings are directed to HOME, with a large share reserved for new construction and extremely low-income households.
Qualified homebuyers (including first-time and first-generation buyers) can receive grants up to $20,000 or 10% of purchase price for down payments, closing costs, or interest-rate buydowns, lowering upfront costs and improving access to homeownership.
Smaller, non‑institutional residential property owners (individual landlords and owner‑occupants) keep current interest and depreciation tax treatments, preserving tax benefits and financing flexibility for local owners.
Renters and low‑income households face higher housing costs because institutional and large owners lose interest and depreciation deductions, which is likely to be passed through as higher rents or reduced maintenance/investment.
Limiting deductions and increasing regulatory scrutiny reduces the attractiveness of private capital for rental housing, risking slower investment, fewer acquisitions and new supply, and deterioration of existing properties over time.
Taxpayers, financial institutions, and the IRS will face substantial new compliance, recordkeeping, and reporting burdens from complex definitions, aggregation rules, and documentary requirements, increasing administrative costs and friction for transactions.
Based on analysis of 6 sections of legislative text.
Eliminates interest and depreciation tax deductions for many residential properties owned by institutional investors/large owners, bars federal sales/financing to them, and redirects tax savings to HUD housing programs and homebuyer grants.
Prohibits large institutional investors and certain "large owners" from claiming interest and depreciation tax deductions for many residential properties they control, blocks federal agencies and government housing entities from selling, disposing of, or financing federally backed mortgages or foreclosed residential properties to those investors, and requires antitrust agencies to broaden review of residential property acquisitions. Estimated federal tax savings from the new limits are directed to HUD: most to the HOME program (including new construction and preservation) and a portion to a homebuyer assistance grant fund for eligible buyers. The bill creates statutory definitions and narrow exceptions (for sales to individuals buying a principal residence and to qualified nonprofits), orders Treasury and tax authorities to issue implementing and anti‑avoidance rules, and instructs the FTC and DOJ to remove prior residential‑property exemptions and treat large market shares in residential acquisitions as presumptively unlawful. Tax changes take effect for taxable years after enactment; HUD funding transfers begin in FY2026.