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Bill

HR 7138

To amend the Internal Revenue Code of 1986 to disallow the deduction of certain expenses relating to ownership of single-family homes by specified large investors, to impose an excise tax on the sale of such homes by such investors, and to prohibit Federal mortgage assistance relating to certain large investors.

119th Congress Introduced by Sheila Cherfilus-McCormick and 13 co-sponsors

Bill restricts large investors' single-family home purchases by denying tax deductions, imposing sale excise taxes, and blocking federal mortgage access to improve homebuyer affordability.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 7138

Legislative bill overview

HR 7138 targets large institutional investors purchasing single-family homes by eliminating their tax deductions on related expenses, imposing an excise tax on sales of these properties, and barring them from accessing federal mortgage assistance programs. The bill aims to reduce corporate and large investor acquisition of residential housing, which advocates argue restricts housing supply and drives up prices for individual homebuyers.

Why is this important

Single-family home ownership has become increasingly concentrated among institutional investors, particularly since the 2008 financial crisis. This trend is linked to rising housing costs and reduced homeownership accessibility for ordinary Americans, making housing policy a significant economic and political issue affecting affordability in local markets nationwide.

Potential points of contention

  • Definition and scope of "large investors": The bill's effectiveness depends on how "specified large investors" is defined—the threshold could significantly impact different investor sizes and corporate structures, creating complexity in implementation.
  • Unintended market effects: Critics may argue the restrictions could reduce rental housing supply or investment capital in housing markets, potentially raising rents or reducing housing development in less profitable areas.
  • Constitutional and legal challenges: Selective tax treatment and property restrictions targeting specific investor classes could face legal challenges regarding equal protection and due process, with unclear precedent in tax law.

Compiled from official sources — confirm details with the bill’s official record.

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