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119-s-3754119th CongressWALLET

Affordable Housing and Homeownership Protection Act of 2026

Sponsored By: Senator Reed, Jack [D-RI]

Introduced

Summary

A new tax on purchases of single-family homes by large investors. This bill would add a tax on covered investors' purchases and funnel the money to federal affordable-housing programs to boost funding for home creation and community investment.

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  • Covered investors who buy single-family homes would pay a purchase tax that ranges from 1% to 5% depending on the investor's size.
  • Sixty-five percent of revenue would go to the Department of Housing and Urban Development's Housing Trust Fund and 35% would go to the Capital Magnet Fund to support affordable housing projects.
  • The bill would define medium, large, and giant investors, apply aggregation and related-party rules, exempt specific nonprofits and public housing entities, and require covered investors to report how many single-family homes they own and purchased.

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Bill Overview

Analyzed Economic Effects

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

New tax on investor home purchases

This bill would create a new tax on purchases of single-family homes by covered investors. It would tax each covered purchase at 1% for investors owning more than 15 and not more than 25 homes, 3% for those owning more than 25 and not more than 100 homes, and 5% for those owning more than 100 homes. "Purchase price" would include any indebtedness incurred or assumed to buy the home. New construction by the buyer would generally not count toward ownership totals unless it replaces a previously purchased home on the same site. Certain nonprofits, States, public housing agencies, land banks, and community land trusts would be exempt. The bill would treat related companies as one person, apply related-party attribution rules (with an exemption for an individual's principal residence), and require covered investors to attach a Treasury-prescribed report showing homes owned and purchased. These tax rules would apply to taxable years beginning after December 31, 2025.

Investor tax funds HUD housing programs

If enacted, Treasury would transfer revenues from the investor purchase tax so 65% goes to HUD’s Housing Trust Fund and 35% goes to HUD’s Capital Magnet Fund. These splits would apply to amounts raised by the new section 4499 tax. The bill would also change the Housing Trust Fund small-state minimum: replace the fixed $3,000,000 floor with a new floor equal to 1.1% of the amounts made available under that subsection in a fiscal year.

Sponsors & CoSponsors

Sponsor

Reed, Jack [D-RI]

RI • D

Cosponsors

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 1/30/2026

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 1/30/2026

  • Sen. Klobuchar, Amy [D-MN]

    MN • D

    Sponsored 1/30/2026

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 1/30/2026

  • Sen. Whitehouse, Sheldon [D-RI]

    RI • D

    Sponsored 1/30/2026

  • Sen. Kim, Andy [D-NJ]

    NJ • D

    Sponsored 1/30/2026

  • Sen. Gallego, Ruben [D-AZ]

    AZ • D

    Sponsored 1/30/2026

  • Sen. Murphy, Christopher [D-CT]

    CT • D

    Sponsored 1/30/2026

  • Sen. Slotkin, Elissa [D-MI]

    MI • D

    Sponsored 1/30/2026

Roll Call Votes

No roll call votes available for this bill.

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