HR7221119th CongressWALLET

Stopping Wall Street From Competing With Main Street Homebuyers Act

Sponsored By: Representative Luna

Introduced

Summary

Blocks large investment funds from buying and holding single-family homes. The bill would add Section 12A to the Investment Company Act of 1940 to ban purchases and require staged divestment of single-family homes by covered funds.

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  • A covered fund would be a registered investment company, a real estate investment trust, or a private fund with more than $500 million in assets under management, or that in the prior year owned 100 or more single-family homes or bought more than 5 single-family homes in a 30-day period. A single-family home would mean a residential structure or mobile home with one housing unit.
  • Starting 90 days after enactment, covered funds would be prohibited from purchasing single-family homes. Ten years after enactment, covered funds would be barred from holding any single-family homes, including through subsidiaries or parent companies.
  • Funds that hold single-family homes on the date of enactment would have a phased divestment requirement to sell at least 10 percent of those homes each year for 10 years.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Stops big funds from buying homes

If enacted, the bill would bar covered funds from buying single-family homes starting 90 days after enactment. Covered funds that own single-family homes on the enactment date would have to sell at least 10% of those homes each year for ten years. Not later than 10 years after enactment, covered funds could not hold any single-family homes, directly or through subsidiaries or a parent company. A "covered fund" would mean a registered investment company, a REIT, or a private fund with more than $500 million in assets. Funds would also be covered if, during the one-year before enactment, they owned 100 or more single-family homes in the United States, or bought more than five single-family homes in a 30-day period. A "single-family home" would mean a residential structure or mobile home that contains one family housing unit.

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Sponsors & CoSponsors

Sponsor

Luna

FL • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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