Bill · H.R. 9657· House(119-HR-9657)
Protecting American Homes from Hedge Funds Act
- Introduced
- 7/13/2026
- Last activity
- 7/13/2026 — Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- Adam Smith
- Cosponsors
- - 3 - 0
- Introduced
- In Committee
What this bill would do
The Protecting American Homes from Hedge Funds Act creates an excise tax for certain fund managers who acquire or keep too many single-family residences. It imposes a 50 percent tax on the fair market value of newly acquired homes and a $50,000 tax for each "excess" home held beyond a decreasing yearly limit. Tax revenues are placed into a Housing Downpayment Trust Fund to provide grants for down payments and closing costs to low-to-moderate income families. Additionally, the bill removes mortgage interest and depreciation deductions for those liable under these taxes. It also prohibits Fannie Mae, Freddie Mac, and Ginnie Mae from supporting mortgages where the lender is a specified large investor.
Yes· 3 of 20
Would households on low incomes be better off under this?+9
Provides grants for down payments and closing costs for those up to 120% area median income.
Does this make housing cost less?+9
Directly targets institutional ownership to increase availability and provides grants for down payments.
Would people in their twenties and thirties be better off under this?+8
Directly aids first-time homebuyers through the Housing Downpayment Trust Fund.
The opposite· 3 of 7
Would billionaires be better off under this?-10
Heavily penalizes hedge fund operations involving residential real estate.
Would the very wealthiest people be better off under this?-9
Significant tax penalties for large-scale ownership of single-family residences.
Would people with substantial wealth be better off under this?-8
Targets individuals/entities with $50M+ in assets via excise taxes.
Who it would affect, and how
Potential Positive Impacts for People
-
Down Payment Assistance: The bill establishes the Housing Downpayment Trust Fund to provide grants for down payments, closing costs, and interest rate buydowns for families with incomes up to 120 percent of the area median income (Section 3(b)(1)).
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Priority for Home Buyers: Individuals and families seeking assistance are given priority if they are buying a home sold by an "applicable taxpayer," potentially increasing the availability of homes for these buyers (Section 3(b)(2)).
Potential Negative Impacts for People
-
Penalties for Buyers: Individuals who buy a home from an applicable taxpayer must provide a certification; if they provide a false certification, they are subject to a $50,000 penalty (Section 2(c)(2)(C) and Section 5000G(f)(2)).
-
Reporting Burdens: The Secretary can require reporting on the dates residences were acquired and whether the person buying the home already owns other residences (Section 5000G(f)(1)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+9Good For Young Adults+8Good For Middle Class Households+7Good For Rural Residents+6Good For Urban Residents+6Good For African Americans+5Good For Hispanic Americans+5Good For Middle Aged+5Good For Native Americans+5Good For Asian Americans+4Good For White Americans+4Good For Children+3Good For Billionaires-10Good For Ultra High Net Worth Individuals-9Good For High Net Worth Individuals-8Good For Business Owners-5Good For High Income Households-4
- Social Issues And Justice
- Improves Affordable Housing+9Improves Poverty Reduction+6Reduces Homelessness+4Improves Racial Equity+3
- Economy And Finance
- Increases Wealthy Taxes+8Increases Corporate Taxes+7Reduces Inflation+2
- Governance And Ideology
- Increases Federal Power+5Improves Privacy Rights-3Increase States Rights-2
- 7/13/2026
- Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 3 Cosponsors added.
- Introduced in House
Ro KhannaDemocrat · California
Linda SánchezDemocrat · California
Nikema WilliamsDemocrat · Georgia