S.Amdt. 4343

SA 4343, submitted by Mr. Warnock, is an amendment to bill H.R. 6644. Its primary purpose is to stop large institutional investors from buying single-family homes to ensure these properties are available for individual people to buy.

Key Changes and Additions

• Ban on Purchases: The amendment prohibits "large institutional investors" (for-profit entities that control 350 or more single-family homes) from purchasing or contracting to purchase single-family homes.

• Allowed Exceptions: Certain purchases are still permitted, such as:

  • New constructions or renovated homes for sale.
  • Build-to-rent or renovate-to-rent programs.
  • Homeownership programs that provide renters with financial support or the right of first refusal to buy the home.
  • Foreclosures handled by mortgage servicers for loss mitigation.
  • Homes for people aged 55 or older that meet specific standards.

• Selling Requirements: For specific excepted purchases (like new constructions or renovations), the investor must sell the home to an individual homebuyer within 7 years.

• Renter Protections: If a home must be sold, the current renter has the right of first refusal and a 30-day "first look" period to purchase the property.

• Penalties and Funding: Investors who break these rules face civil penalties of up to $1,000,000 per violation or 3 times the property's purchase price. This money will be transferred to HUD to fund the HOME Investment Partnerships program for new construction and first-time homebuyer assistance.

• Accountability and Review: The amendment requires reports from the GAO and HUD after 2 and 10 years to study the impact on housing affordability and the effectiveness of the ban.

• Timeline: These rules would start 180 days after the Act is passed and would be repealed after 15 years.