S.Amdt. 4363

This amendment, submitted by Mr. Reed, proposes to add a title called the Affordable Housing and Homeownership Protection Act of 2026 to bill H.R. 6644. Its primary purpose is to create a tax on specific investors who purchase single-family homes.

Key Changes and Additions

The amendment aims to add the following to the bill:

• Investor Tax: It establishes a tax on "covered investors" based on the purchase price of single-family homes. The tax rate depends on the size of the investor:

  • Medium-sized investor (owning more than 15 and not more than 25 homes): 1 percent.
  • Large investor (owning more than 25 and not more than 100 homes): 3 percent.
  • Giant investor (owning more than 100 homes): 5 percent.

• Exceptions: The tax does not apply to certain groups, including:

  • Organizations exempt under section 501(a) focused on affordable housing, neighborhood stabilization, or housing counseling.
  • States, political subdivisions, public housing authorities, land banks, or community land trusts.
  • New construction by the taxpayer, unless the new home replaces a previous home purchased by the taxpayer on the same site.

• Revenue Distribution: The money collected from this tax will be split:

  • 65 percent to the Secretary of Housing and Urban Development for the Housing Trust Fund.
  • 35 percent for the Capital Magnet Fund.

• Housing Trust Fund Adjustment: The amendment changes the small state minimum in Section 1338(c)(4)(C) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 from "$3,000,000" to "1.1 percent of amounts made available" in a fiscal year.

• Implementation: These changes are set to apply to taxable years beginning after December 31, 2025.