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