118 S3673 IS: Affordable Housing and Homeownership Protection Act of 2024 U.S. Senate 2024-01-25 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II118th CONGRESS2d SessionS. 3673IN THE SENATE OF THE UNITED STATESJanuary 25, 2024Mr. Reed (for himself, Ms. Smith, Mrs. Gillibrand, Mr. Blumenthal, Ms. Klobuchar, Mr. Fetterman, and Ms. Baldwin) introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo amend the Internal Revenue Code of 1986 to impose a tax on the purchase of single-family homes by certain large investors, and for other purposes.

1.

Short title

This Act may be cited as the Affordable Housing and Homeownership Protection Act of 2024.

2.

Tax on certain investor purchases of single-family homes

(a)

In general

Chapter 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:G

Certain home purchases

4499.

Tax on certain investor purchases of single-family homes

(a)

In general

There is hereby imposed on each covered investor a tax equal to the applicable percentage of the purchase price paid by such covered investor with respect to any covered home purchase during the taxable year.(b)

Applicable percentage

For purposes of subsection (a), the applicable percentage is—(1)1 percent in the case of a medium-sized investor,(2)3 percent in the case of a large investor, and(3)5 percent in the case of a giant investor.(c)

Covered investor

For purposes of this section—(1)

In general

The term covered investor means any person, other than a person described in paragraph (6), who is a medium-sized investor, large investor, or giant investor.(2)

Medium-sized investor

The term medium-sized investor means any person who owns more than 15 and not more than 25 single-family homes as of the last day of the taxable year.(3)

Large investor

The term large investor means any person who owns more than 25 and not more than 100 single-family homes as of the last day of the taxable year.(4)

Giant investor

The term giant investor means any person who owns more than 100 single-family homes as of the last day of the taxable year.(5)

New construction excluded

Any new single-family home which is constructed by the taxpayer shall not be taken into account for purposes of this subsection, unless such single-family home replaces a previous single-family home on the same site which was purchased by the taxpayer and replaced with the newly constructed single-family home.(6)

Exceptions

A person described in this paragraph is—(A)any organization which is exempt from taxation under section 501(a), the primary purpose of which is related to affordable housing, housing counseling, or neighborhood stabilization,(B)any State or political subdivision thereof,(C)any public housing authority or its instrumentalities,(D)any land bank, or(E)any community land trust.(d)

Terms relating to home purchase, etc

For purposes of this section—(1)

Covered home purchase

(A)

In general

The term covered home purchase means the purchase of a single-family home by a covered investor.(B)

New construction

The construction of a new single-family home by the taxpayer shall not be treated as a purchase, unless such new single-family home is taken into account for purposes of subsection (c) by reason of paragraph (5) thereof.(2)

Purchase price

The term purchase price means the total amount paid, including the amount of any indebtedness incurred or assumed, by the taxpayer to acquire a single-family home from the seller.(3)

Single-family home

The term single-family home has the meaning given such term by section 81.2 of title 24, Code of Federal Regulations.(4)

Own

The term own means directly or indirectly possessing a majority interest in a single-family home.(e)

Aggregation rules

(1)

In general

Except as otherwise provided in paragraph (2), all persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, shall be treated as 1 person for purposes of this section.(2)

Modifications

For purposes of this subsection—(A)section 52(a) shall be applied by substituting component members for members, and(B)for purposes of applying section 52(b), the term trade or business shall include any activity treated as a trade or business under paragraph (5) or (6) of section 469(c) (determined without regard to the phrase To the extent provided in regulations in such paragraph (6)).(3)

Component member

For purposes of paragraph (2), the term component member has the meaning given such term by section 1563(b), determined without regard to paragraph (2) thereof.(f)

Reporting

Each person who is a covered investor for the taxable year shall attach to the return of the tax imposed by this section a report containing information, in such form as the Secretary shall prescribe, on—(1)the number of single-family homes owned on the last day of the taxable year by such person, and(2)the number of single-family homes purchased by such person during the taxable year.

.(b)

Clerical amendment

The table of subchapters for chapter 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:SUBCHAPTER G—Certain home purchases.(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2023.

3.

Revenues

The Secretary of the Treasury shall allocate or otherwise transfer such revenues resulting from the tax imposed by section 4499 of the Internal Revenue Code of 1986 as follows:(1)65 percent of such amounts to the Secretary of Housing and Urban Development to provide additional funding for the Housing Trust Fund established under section 1338(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568(a)).(2)35 percent of such amounts to provide additional funding for the Capital Magnet Fund established under section 1339(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4569(a)).

4.

Housing Trust Fund small State minimum

Section 1338(c)(4)(C) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568(c)(4)(C)) is amended by striking $3,000,000 each place that term appears and inserting $7,000,000.