S.788 - HOPE (Humans over Private Equity) for Homeownership Act (119th Congress)
Summary
The HOPE (Humans over Private Equity) for Homeownership Act aims to discourage hedge funds and other applicable entities from owning excessive single-family residences. It proposes to amend the Internal Revenue Code of 1986 by imposing an excise tax on these entities if they fail to dispose of excess residences according to a specified schedule. The bill also disallows mortgage interest and depreciation deductions for single-family residences owned by covered taxpayers liable for the new excise tax.
Expected Effects
The primary effect of this bill, if enacted, would be to increase the cost of owning single-family homes for hedge funds and similar entities. This could lead to a reduction in the number of single-family homes owned by these entities, potentially increasing the availability of homes for individual buyers and families.
Potential Benefits
- Increased homeownership opportunities for individuals and families.
- Reduced market manipulation by large financial institutions in the housing sector.
- Potential stabilization of housing prices by limiting institutional investment.
- Discourages the conversion of single-family homes into rental properties owned by large entities.
- Promotes community stability by encouraging owner-occupancy.
Most Benefited Areas:
Potential Disadvantages
- Potential reduction in investment in the housing market, which could slow down new construction.
- Increased complexity in the tax code.
- Possible legal challenges from affected entities.
- Could disproportionately affect certain real estate investment strategies.
- May not significantly impact overall housing affordability in all markets.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's constitutional alignment is primarily related to Congress's power to tax and regulate commerce. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts, and excises. The proposed excise tax falls under this enumerated power. Additionally, the regulation of financial entities involved in real estate could be argued under the Commerce Clause, as it affects interstate economic activity. However, challenges could arise if the tax is deemed discriminatory or unduly burdensome, potentially raising concerns under the Fifth Amendment's Due Process Clause.
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).