H.R.1745 - Humans over Private Equity for Homeownership Act; HOPE for Homeownership Act (119th Congress)
Summary
H.R.1745, the "Humans over Private Equity for Homeownership Act" or "HOPE for Homeownership Act," aims to discourage hedge funds and other applicable entities from owning excessive single-family residences. The bill introduces an excise tax on newly acquired single-family residences by hedge fund taxpayers and on the failure of applicable taxpayers to dispose of excess single-family residences. It also disallows mortgage interest and depreciation deductions for single-family residences owned by covered taxpayers liable for the new excise tax.
Expected Effects
The bill seeks to increase the availability of single-family homes for individual buyers by making it more expensive for large financial entities to hold these properties as investments. This could lead to a decrease in institutional ownership of single-family homes and potentially stabilize or reduce housing prices. The new tax revenue could be used for other government programs.
Potential Benefits
- Increased homeownership opportunities for individuals and families.
- Potential stabilization or reduction of housing prices.
- Discouragement of speculative investment in single-family homes.
- New tax revenue for government programs.
- Leveling the playing field between individual homebuyers and large financial institutions.
Potential Disadvantages
- Potential negative impact on investment returns for hedge funds and other applicable entities.
- Possible reduction in the supply of rental properties.
- Complexity in defining and enforcing the regulations.
- Potential for unintended consequences in the housing market.
- Possible legal challenges from affected entities.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is primarily based on Congress's power to tax and regulate interstate commerce (Article I, Section 8). The excise tax and disallowance of deductions are exercises of the taxing power. The regulation of housing markets, while traditionally a state matter, can be justified under the Commerce Clause if it substantially affects interstate commerce. However, challenges could arise if the law is deemed discriminatory or unduly burdensome.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).