Affordable Housing and Homeownership Protection Act of 2026

Support for Affordable Housing Programs: 65 percent of the tax revenues will be allocated to the Secretary of Housing and Urban Development to provide additional funding for the Housing Trust Fund (Section 3).

Support for Capital Magnet Fund: 35 percent of the tax revenues will be used to provide additional funding for the Capital Magnet Fund (Section 3).

Exemptions for Community-Focused Groups: Certain organizations are not subject to the tax, including those exempt from taxation under section 501(a) whose primary purpose relates to affordable housing, housing counseling, or neighborhood stabilization (Section 2(c)(6)(A)).

Exemptions for Government and Public Entities: Tax-exempt status is granted to States, political subdivisions, public housing authorities, land banks, and community land trusts (Section 2(c)(6)).

Exemptions for New Construction: The tax does not apply to the construction of a new single-family home by the taxpayer, provided it is not replacing a previous home purchased by that same taxpayer (Section 2(c)(5)).

Financial Burden on Investors: Investors who own more than 15 single-family homes will face a tax on their purchases, with rates of 1 percent for medium-sized, 3 percent for large, and 5 percent for giant investors (Section 2(a) and Section 2(b)).

Taxation of Indebtedness: The tax is calculated based on the total purchase price, which includes any debt incurred or assumed to acquire the home (Section 2(d)(2)).