[Congressional Record Volume 172, Number 42 (Thursday, March 5, 2026)]
[Senate]
[Pages S898-S899]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4363. Mr. REED submitted an amendment intended to be proposed by
him to the bill H.R. 6644, a bill to increase the supply of housing in
America, and for other purposes; which was ordered to lie on the table;
as follows:
At the appropriate place, insert the following:
[[Page S899]]
TITLE __--AFFORDABLE HOUSING AND HOMEOWNERSHIP PROTECTION
SEC. __ 1. SHORT TITLE.--
This title may be cited as the ``Affordable Housing and
Homeownership Protection Act of 2026''.
SEC. __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:
``Subchapter G--Certain Home Purchases
``SEC. 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.
``(4) Acquisition of homes by related parties.--
``(A) In general.--For purposes of determining the number
of homes owned or purchased by a covered investor, a covered
home purchase by a person bearing a relationship to the
covered investor specified in section 267(b) or 707(b)(1),
from a person who does not bear such a relationship to the
covered investor, shall be treated as a covered home purchase
by the covered investor.
``(B) Members of family.--For purposes of this paragraph,
sections 267(b) and 707(b)(1) shall be applied as if section
267(c)(4) provided that the family of an individual consists
of the individual's spouse, the individual's children,
grandchildren, and parents, and any spouse of the
individual's children or grandchildren.
``(C) Exception.--This paragraph shall not apply to the
purchase or ownership by any individual of a home which is
the principal residence (within the meaning of section 121)
of the individual.
``(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,
2025.
SEC. __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)).
SEC. __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 ``1.1 percent of
amounts made available under this subsection in a fiscal
year''.
______