End Hedge Fund Control of American Homes Act

Capitol building

The “End Hedge Fund Control of American Homes Act” is a proposed law aimed at addressing the issue of hedge funds owning excessive single-family residences. Here’s what it entails:

Tax on Hedge Funds:

Hedge funds that acquire new single-family residences will be taxed at 50% of the fair market value of those properties.
Hedge funds failing to sell excess single-family residences will face a tax penalty based on the number of excess properties they own.
The number of excess properties owned by hedge funds will be compared to a maximum permissible limit, which decreases over time.

Definitions and Rules:

The bill defines terms like “applicable taxpayer” (entities managing pooled funds from investors), “single-family residence,” and “disqualified sale.”
Certain exemptions are provided, such as for organizations engaged in construction or rehabilitation of single-family residences.
Reporting requirements are outlined, with penalties for failure to report or provide accurate information.

Use of Tax Revenues:

Revenues from the imposed taxes will be directed to a Housing Downpayment Trust Fund.
Grants will be provided to State housing finance agencies to support down payment assistance programs for families purchasing homes, with priority given to families buying homes from hedge fund-owned properties.

Implications for Consumers:

The bill aims to deter hedge funds from holding excess single-family residences by imposing taxes and directing revenues towards down payment assistance programs.
Homebuyers, particularly those seeking assistance with down payments, may benefit from the grants provided through the Housing Downpayment Trust Fund.
Ryan Sparks with Influence Lending is a trusted mortgage professional who can provide guidance and keep clients informed about changes in the mortgage market, including any impact from this proposed legislation.

In essence, this bill seeks to address housing market issues caused by hedge funds acquiring and holding excessive single-family residences, while also providing support for homebuyers through down payment assistance programs. Ryan Sparks with Influence Lending can help navigate these changes and assist clients in achieving their homeownership goals in the Salt Lake City, Utah area.

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