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S3930119th CongressWALLET

HOPE (Humans over Private Equity) for Homeownership Act

Sponsored By: Senator Merkley, Jeff [D-OR]

Introduced

Summary

Targets hedge-fund purchases of single-family homes. This bill would hit large fund managers that buy 1–4 unit residential properties with new taxes and tighter tax rules to discourage investor ownership of single-family housing.

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  • Hedge fund taxpayers that manage pooled investor funds and have $50 million or more in assets would face a 15% excise tax on the purchase price of newly acquired single-family residences, unless the property is used as a principal residence and not rented.
  • For tax years beginning after December 31, 2030, these hedge fund taxpayers would be denied mortgage interest and depreciation deductions for single-family residences they rent or lease.
  • For hedge-fund corporations, the bill would raise the corporate surtax by 5 percentage points and adjust Qualified Business Income treatment for affected entities for tax years beginning after December 31, 2035.

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Bill Overview

Analyzed Economic Effects

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

Pass-through deduction for hedge funds

This bill would let trades or businesses run by hedge fund taxpayers qualify for the Qualified Business Income (199A) deduction. If enacted, that change would apply to tax years beginning after December 31, 2035. Qualifying hedge funds are the same kinds of entities targeted by the bill’s other rules (those managing pooled funds with $50 million or more in net value or assets under management).

Higher taxes and fees for hedge funds

This bill would raise the tax cost of single-family housing activity for hedge fund taxpayers. It would impose a 15% excise tax on the purchase price (adjusted basis) of 1-to-4 unit homes bought by qualifying hedge funds, unless the property is used as an owner’s principal residence and never rented. It would also deny depreciation and acquisition-interest deductions for hedge funds that rent or lease 1-to-4 unit residences in tax years beginning after December 31, 2030. Finally, it would raise the corporate percentage by 5 percentage points for hedge fund corporations in tax years beginning after December 31, 2035.

Sponsors & CoSponsors

Sponsor

Merkley, Jeff [D-OR]

OR • D

Cosponsors

  • Sen. Hawley, Josh [R-MO]

    MO • R

    Sponsored 2/26/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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