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The proposed legislation, the “End Hedge Fund Control of American Homes Act of 2023,” aims to address concerns about hedge funds buying and owning single-family homes, potentially impacting the housing market and accessibility for individual buyers. The bill’s key points include:

  1. Requirement to Sell Single-Family Homes: Hedge funds categorized as entities managing pooled investor funds would be mandated to sell off all single-family homes they own within a 10-year period.
  2. Prohibition on Hedge Funds Owning Single-Family Homes: Eventually, the legislation aims to completely prevent these entities (hedge funds, corporations, partnerships, or real estate investment trusts) from owning any single-family homes.
  3. Stiff Tax Penalties During Phaseout: During the ten-year phaseout period, significant tax penalties would be imposed on these entities, with the generated revenue allocated for down-payment assistance to support individuals seeking to purchase homes from corporate owners.

The rationale behind this bill seems centered on mitigating the influence of large-scale investors, like hedge funds, in the housing market. By incentivizing the sale of single-family homes owned by these entities and channeling the resulting funds to assist individual homebuyers, the aim is to potentially increase the availability of single-family homes for regular buyers and curb the impact of wealthy investors on home prices and rents.

The legislators behind the bill, Senator Jeff Merkley and Representative Adam Smith, are expressing concerns about how the current market dynamics, with both rising home prices and increasing competition from wealthy entities, are making homeownership more challenging for average Americans.

If passed into law, this legislation could potentially reshape the housing market landscape, aiming to level the playing field for individual homebuyers and address the soaring prices and competitive landscape driven by corporate ownership

Please make sure to vote YES to pass the bill!

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