Sponsors (5)
The bill creates a tax-funded Housing Trust Fund that can expand down-payment assistance and encourage sale of underused single-family homes — improving access and supply — but does so by imposing a new excise tax, adding administrative complexity, and restricting who and what the funds can help.
Low- and middle-income buyers gain access to down-payment assistance funded by a new federal Housing Trust Fund, making homeownership more attainable for those groups.
Owners of underused single-family residences may face incentives to sell, which could increase available housing supply and turnover in neighborhoods.
Establishes a dedicated, tax-financed federal funding source for housing assistance and includes placement/table clarifications that should improve administrability and predictability for state programs and the IRS once operative text is finalized.
Imposes a new excise tax (IRC sec. 5000E) on targeted owners that will raise tax liabilities (beginning in 2026), increasing the cost of owning certain single-family properties.
Prioritizing buyers of properties sold by 'covered taxpayers' risks excluding other needy buyers and concentrates benefits toward transactions tied to that seller class.
The bill currently lacks operative tax text and detail on scope, exemptions, and compliance, creating uncertainty for affected owners and likely increasing recordkeeping and administrative burdens for taxpayers and the IRS.
Based on analysis of 3 sections of legislative text.
Imposes an excise tax on certain holders of excess single-family homes and channels the revenues into a new Housing Trust Fund for HUD grants to state HFAs for down payment assistance, prioritizing buyers of those homes.
Introduced June 5, 2025 by Alma Adams · Last progress June 5, 2025
Imposes an excise tax on certain taxpayers that hold or fail to sell excess single-family residences and directs revenues from that tax into a new federal Housing Trust Fund. The Trust Fund will finance HUD grants to State housing finance agencies (HFAs) to create or supplement down payment assistance programs, with priority for families buying single-family homes sold or transferred by the taxed "covered taxpayers." The tax provisions apply to taxable years beginning after December 31, 2025.