The bill introduces an excise tax on the sale or transfer of single-family homes by specified large investors, which is equivalent to the sale price of the homes. The revenue generated from this tax is earmarked for low-income housing assistance through the Housing Trust Fund, supporting affordable housing initiatives. Additionally, the bill prohibits federal mortgage assistance to specified large investors, preventing them from accessing government-backed financing. This could significantly shift the landscape for large institutional investors in the housing market by increasing their operational costs and limiting their growth potential.
Summary
House Bill 10028, titled the 'Stop Wall Street Landlords Act of 2024', aims to amend the Internal Revenue Code of 1986 by disallowing certain deductions for specified large investors involved in single-family home ownership. It specifically targets large entities managing substantial real estate portfolios, which are often blamed for the affordability crisis in housing markets. By implementing this bill, the government seeks to limit the tax benefits available to these investors, thereby promoting fairer housing options for individual homeowners and renters.
Contention
Despite its intentions, the bill has incited concerns about the broader implications for the housing market. Opponents argue that limiting the ability for large investors to deduct expenses or receive federal assistance may reduce the amount of capital available for property maintenance and construction, potentially exacerbating housing shortages in certain markets. Advocates for the bill, however, maintain that the current model allows for overreach by large investors at the expense of everyday citizens, thus necessitating such legislative action.
Converts the Angel Investor Tax Credit Program to the Angel Investor Rebate Program and provides for the rebate program (EN -$20,000,000 GF RV See Note)