HOPE for Homeownership Act

This bill aims to curb large investment firms from buying and holding many single-family homes. It would charge a tax when a covered hedge fund buys a single‑family home: the greater of 15% of the purchase price or $10,000. It also sets a limit on how many single‑family homes these firms can hold. If they keep more than allowed at the end of the year, they pay $5,000 for each extra home. The tax applies to homes bought in tax years that begin after the law takes effect, and it targets firms that fail to reduce holdings above the limit .

It applies to “hedge fund taxpayers,” meaning investment firms that manage pooled money and have $50 million or more in assets. The rules cover homes with 1 to 4 units, with some exceptions (for example, certain foreclosures and some low‑income housing credit properties). Nonprofits and builders who mainly construct or fix up homes to sell are not covered. Owning a majority interest counts as ownership, and related companies are treated as one firm for these rules.

• Who is affected: Investment funds with $50M+ in assets; includes partnerships, corporations, and REITs; excludes 501(c)(3) nonprofits and builders/rehab sellers.
• What changes: Tax on each new home purchase by a covered fund (≥15% of price or $10,000), plus $5,000 per home above the allowed cap at year’s end; majority-interest ownership counts; related entities are combined .
• When: Applies to homes acquired in tax years beginning after enactment; the excess‑home tax is based on holdings at the end of each tax year.