Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3121 Compare Versions

Only one version of the bill is available at this time.

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2	2	HOUSE DOCKET, NO. 1735 FILED ON: 1/15/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 3121
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	James K. Hawkins
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act ending large investor control of homes in Massachusetts.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:James K. Hawkins2nd Bristol1/15/2025Patricia A. Duffy5th Hampden1/23/2025Dennis C. Gallagher8th Plymouth1/22/2025Carmine Lawrence Gentile13th Middlesex2/15/2025Erika Uyterhoeven27th Middlesex2/19/2025 1 of 6
16	16	HOUSE DOCKET, NO. 1735 FILED ON: 1/15/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 3121
18	18	By Representative Hawkins of Attleboro, a petition (accompanied by bill, House, No. 3121) of
19	19	James K. Hawkins and others for legislation to establish an excise tax for certain applicable
20	20	taxpayers in excess of the maximum permissible for single-family residences. Revenue.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 4830 OF 2023-2024.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Fourth General Court
26	26	(2025-2026)
27	27	_______________
28	28	An Act ending large investor control of homes in Massachusetts.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. The General Laws is hereby amended by inserting after chapter 64N the
32	32	2following chapter:-
33	33	3 Chapter 64O. Ending Large Investor Control of Homes in Massachusetts.
34	34	4 Section 1. For the purposes of this chapter, the following terms shall, unless the context
35	35	5clearly requires otherwise, have the following meanings:
36	36	6 “Applicable date”, the last day of the first full taxable year: (i) after the date of the
37	37	7enactment of this chapter; or (ii) preceding the taxable year in which the taxpayer became a
38	38	8hedge fund taxpayer. 2 of 6
39	39	9 “Applicable small property”, is any small property acquired on or before the applicable
40	40	10date.
41	41	11 “Applicable taxpayer”, is any person or entity that manages funds pooled from investors
42	42	12and is a fiduciary with respect to such investors. The term “applicable taxpayer” shall not include
43	43	13an organization that is described in section 501(c)(3) and exempt from tax under section 501(a)
44	44	14of the Internal Revenue Code, or an organization primarily engaged in the construction or
45	45	15rehabilitation of single-family residences.
46	46	16 “Disqualified sale”, any sale or transfer to: (i) a corporation or other entity engaged in the
47	47	17conduct of any trade or commerce; or (ii) an individual who does not intend to occupy the single-
48	48	18family residence.
49	49	19 “Large investor”, any applicable taxpayer that has $10,000,000 or more in net value or
50	50	20assets under management on any day during the taxable year.
51	51	21 “Small property”, a residential property located in the commonwealth consisting of 1 to 4
52	52	22dwelling units. The term shall not include any property that: (i) is unoccupied and was acquired
53	53	23through foreclosure; (ii) is used as the principal residence of any person who has an ownership
54	54	24interest in the applicable taxpayer; (iii) was constructed, acquired or operated with federally
55	55	25appropriated funding sources; (iv) is legally deemed affordable housing; or (v) a legal nonprofit.
56	56	26 Section 2. (a) There shall be levied on an applicable taxpayer that fails to meet the
57	57	27requirements of section 3 an excise tax equal to the product of: (i) $10,000,000; and (ii) the
58	58	28number of applicable small properties owned by an applicable taxpayer in excess of the
59	59	29maximum permissible small properties, as determined in section 3. 3 of 6
60	60	30 (b) The Executive Office of Housing and Livable Communities shall deposit any money
61	61	31collected pursuant to this chapter in the Housing Down Payment Trust Fund, established in
62	62	32section 5.
63	63	33 Section 3. (a) As of the last day of a taxable year, an applicable taxpayer shall own equal
64	64	34to or less than the maximum permissible small properties, as determined in subsection (b), or be
65	65	35subject to the excise tax established in section 2. A small property that is sold or transferred in a
66	66	36disqualified sale during the taxable year shall be treated as a small property that is owned by the
67	67	37applicable taxpayer as of the last day of such taxable year for the purposes of this chapter.
68	68	38 (b) The maximum permissible small properties with respect to any applicable taxpayer
69	69	39for any taxable year shall be determined as follows:
70	70	40 In the case of— the maximum permissible small properties for a large investor taxpayer
71	71	41is— the maximum permissible small property residences for any other applicable taxpayer is—
72	72	42 the first taxable year beginning after the applicable date . . . 90 percent of the number of
73	73	43applicable small properties owned by the taxpayer on the applicable date 50 plus 90 percent of
74	74	44the number of small properties owned by the taxpayer on the applicable date
75	75	45 the second taxable year beginning after the applicable date . . . 80 percent of the number
76	76	46of applicable small properties owned by the taxpayer on the applicable date 50 plus 80 percent of
77	77	47the number of applicable small properties owned by the taxpayer on the applicable date
78	78	48 the third taxable year beginning after the applicable date . . . 70 percent of the number of
79	79	49applicable small properties owned by the taxpayer on the applicable date 50 plus 70 percent of
80	80	50the number of applicable small properties owned by the taxpayer on the applicable date 4 of 6
81	81	51 the fourth taxable year beginning after the applicable date . . . 60 percent of the number of
82	82	52applicable small properties owned by the taxpayer on the applicable date 50 plus 60 percent of
83	83	53the number of applicable small properties owned by the taxpayer on the applicable date
84	84	54 the fifth taxable year beginning after the applicable date . . . 50 percent of the number of
85	85	55applicable small properties owned by the taxpayer on the applicable date 50 plus 50 percent of
86	86	56the number of applicable small properties owned by the taxpayer on the applicable date
87	87	57 the sixth taxable year beginning after the applicable date . . . 40 percent of the number of
88	88	58applicable small properties owned by the taxpayer on the applicable date 50 plus 40 percent of
89	89	59the number of applicable small properties owned by the taxpayer on the applicable date
90	90	60 the seventh taxable year beginning after the applicable date . . . 30 percent of the number
91	91	61of applicable small properties owned by the taxpayer on the applicable date 50 plus 30 percent of
92	92	62the number of applicable small properties owned by the taxpayer on the applicable date
93	93	63 the eighth taxable year beginning after the applicable date . . . 20 percent of the number
94	94	64of applicable small properties owned by the taxpayer on the applicable date 50 plus 20 percent of
95	95	65the number of applicable small properties owned by the taxpayer on the applicable date
96	96	66 the ninth taxable year beginning after the applicable date . . . 10 percent of the number of
97	97	67applicable small properties owned by the taxpayer on the applicable date 50 plus 10 percent of
98	98	68the number of applicable small properties owned by the taxpayer on the applicable date
99	99	69 any taxable year beginning more than 9 years after the applicable date . . . 0 50. 5 of 6
100	100	70 Section 4. (a) For the purposes of this chapter, an applicable taxpayer shall be considered
101	101	71as having acquired a small property if it acquires 10 per cent or greater ownership interest in the
102	102	72small property.
103	103	73 (b) For the purposes of this chapter, an applicable taxpayer shall be considered as owning
104	104	74a small property if it owns a 10 per cent or greater ownership interest in the small property.
105	105	75 Section 5. (a) There shall be established and set up on the books of the commonwealth a
106	106	76fund known as the Housing Down Payment Trust Fund, to be administered by the Executive
107	107	77Office of Housing and Livable Communities, in coordination with the Massachusetts Housing
108	108	78Finance Agency and the Department of Revenue. The fund shall be credited with: (i) funds
109	109	79transferred pursuant to section 2; (ii) appropriations or other money authorized or transferred by
110	110	80the general court and specifically designated to be credited to the fund; (iii) funds from public
111	111	81and private sources, including, but not limited to, gifts, grants and donations; and (iv) any
112	112	82interest earned on the assets of the fund.
113	113	83 (b) The executive office, in coordination with the Massachusetts Housing Finance
114	114	84Agency and the Department of Revenue, shall use the fund to provide grants for down payment
115	115	85assistance to first-time homebuyers purchasing small properties.
116	116	86 (c) Annually, the executive office shall submit to the clerks of the House of
117	117	87Representatives and the Senate and the joint committee on housing a report including (i) the
118	118	88amount and source of the deposits to the trust fund; (ii) the number of grants provided from the
119	119	89trust fund under subsection (b); and (iii) demographic and financial information about grant
120	120	90applicants and recipients. 6 of 6
121	121	91 Section 6. For each sale or transfer of an applicable small property by an applicable
122	122	92taxpayer, the Executive Office of Housing and Livable Communities shall require a certification
123	123	93signed by the purchaser or transferee that states: (i) the name and address of the purchaser or
124	124	94transferee; (ii) whether the sale is a disqualified sale; and (iii) whether the purchaser or transferee
125	125	95owns any other small properties at the time of the sale or transfer.
126	126	96 Section 7. Annually, the Executive Office of Housing and Livable Communities shall
127	127	97submit to the clerks of the House of Representatives and the Senate and the joint committee on
128	128	98housing a report including (i) the number of small properties owned by each applicable taxpayer
129	129	99in the preceding taxable year; (ii) the number of small properties acquired by each applicable
130	130	100taxpayer in the preceding taxable year; and (iii) the number of transfers or sales of small
131	131	101properties by each applicable taxpayer in the preceding taxable year, and whether the purchaser
132	132	102or transferee owned any other small properties at the time of the transfer or sale.
133	133	103 SECTION 2. Not later than 180 days following the passage of this act, the Executive
134	134	104Office of Housing and Livable Communities shall publish: (i) a form to be used for calculating
135	135	105the tax owed under chapter 64O of the General Laws, as added by section 1; and (ii) a form to be
136	136	106used for the certification of the sale or transfer of a single-family residence by an applicable
137	137	107taxpayer, as required by section 6 of said chapter 64O.
138	138	108 SECTION 3. The Executive Office of Housing and Livable Communities shall
139	139	109promulgate any rules or regulations necessary to implement this act within 90 days following the
140	140	110passage of this act.