HR7138119th CongressWALLET

Stop Wall Street Landlords Act of 2026

Sponsored By: Representative Rep. Khanna, Ro [D-CA-17]

Introduced

Summary

Blocking big investors from buying and profiting on single-family homes. This bill would deter large, corporate ownership and transfers of 1-to-4 unit homes by denying key tax benefits, charging a steep transfer tax, and cutting off certain federal mortgage support for those investors.

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  • Families and very low-income renters would get new funding. Penalties from the law would be deposited into the federal Housing Trust Fund to increase and preserve rental housing for extremely low- and very low-income families, including homeless families.
  • Large investors would face new tax hits. Investors with more than $100 million in net assets would lose mortgage interest and depreciation deductions on single-family homes and pay a transfer tax equal to the sale price. The rules exclude principal residences owned by individuals and homes the taxpayer substantially built or rehabilitated, and they do not apply to federally-assisted buildings.
  • The mortgage finance rules would tighten. Fannie Mae, Freddie Mac, and Ginnie Mae would be barred from newly buying, guaranteeing, lending on, or securitizing mortgages where the mortgagee qualifies as a specified large investor.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

Higher taxes on big landlords

This bill would block large investors from taking common tax deductions for 1–4 unit U.S. homes they own. A "specified large investor" is anyone whose assets minus debts exceed $100,000,000 at any time in the tax year, with rules that treat controlled groups as one person. It would also impose a one-time transfer tax on covered sellers equal to the home's sale price. These tax rules would start 18 months after the bill becomes law and would not apply to a large investor's principal home, to government or 501(c)(3) owners, to federally assisted buildings, or to homes the taxpayer originally built or substantially rehabilitated.

Agencies barred from buying investor loans

This bill would direct the FHFA Director to stop Fannie Mae and Freddie Mac from newly buying, lending on, or securitizing mortgages when the lender is a specified large investor. It would also amend law to bar Ginnie Mae from newly guaranteeing or acquiring mortgage-backed pools or mortgages where the mortgagee is a specified large investor. The restrictions use the same $100,000,000 asset-minus-debt definition and apply only to new purchases, guarantees, or acquisitions.

Penalty money for affordable housing

This bill would require penalties collected under the new transfer tax to be deposited into the federal Housing Trust Fund. That money would be used, subject to advance appropriations by Congress, to increase and preserve rental housing affordable to extremely low- and very low-income families, including homeless families. Congress must approve spending before the Fund can use the deposited amounts.

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Sponsors & CoSponsors

Sponsor

Rep. Khanna, Ro [D-CA-17]

CA • D

Cosponsors

  • Rep. Watson Coleman, Bonnie [D-NJ-12]

    NJ • D

    Sponsored 1/16/2026

  • Rep. Deluzio, Christopher R. [D-PA-17]

    PA • D

    Sponsored 1/16/2026

  • Rep. García, Jesús G. "Chuy" [D-IL-4]

    IL • D

    Sponsored 1/16/2026

  • Rep. Jackson, Jonathan L. [D-IL-1]

    IL • D

    Sponsored 1/16/2026

  • Rep. Simon, Lateefah [D-CA-12]

    CA • D

    Sponsored 1/16/2026

  • Rep. Takano, Mark [D-CA-39]

    CA • D

    Sponsored 1/16/2026

  • Rep. Frost, Maxwell [D-FL-10]

    FL • D

    Sponsored 1/16/2026

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 1/16/2026

  • Rep. Tokuda, Jill N. [D-HI-2]

    HI • D

    Sponsored 1/16/2026

  • Rep. Lee, Summer L. [D-PA-12]

    PA • D

    Sponsored 1/16/2026

  • Rep. Kelly, Robin L. [D-IL-2]

    IL • D

    Sponsored 1/16/2026

  • Rep. Cherfilus-McCormick, Sheila [D-FL-20]

    FL • D

    Sponsored 1/16/2026

  • Rep. Thanedar, Shri [D-MI-13]

    MI • D

    Sponsored 1/16/2026

  • Rep. Vasquez, Gabe [D-NM-2]

    NM • D

    Sponsored 1/27/2026

  • Grijalva

    AZ • D

    Sponsored 2/4/2026

Roll Call Votes

No roll call votes available for this bill.

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