S.Amdt. 4309

The amendment, titled Homes for American Families, aims to change the Sherman Act by adding a new section regarding residential real estate contracts in restraint of trade. Its purpose is to address the purchase of residential real estate by specific large-scale entities.

Key Changes and Additions

• Covered Entities: The amendment identifies covered entities as real estate investment trusts, insurance companies, and investment companies or private funds with assets under management of at least $150,000,000 (including those owned or controlled by persons with such assets).

• Restrictions on Purchases: Any purchase of residential real estate (single-family homes, condominiums, townhouses, or zoned land for these properties) by a covered entity is deemed a civil violation of section 1 of the Sherman Act as a contract in restraint of trade.

• Exceptions: The rules do not apply to homebuilders, developers, or redevelopers if the residential units are constructed for ownership by someone not prohibited from purchasing them.

• Enforcement: The Assistant Attorney General for the Antitrust Division of the Department of Justice is directed to prioritize:

• Reviewing residential real estate purchases by covered entities for anti-competitive effects.

• Enforcing antitrust laws against covered entities for pricing strategies, coordinated vacancy, and other anti-competitive practices in local markets.

• Timeline: The amendment applies to purchases made on or after the date of enactment and takes effect 90 days after the Act is enacted.