II 

117TH CONGRESS 

2D SESSION S. 5151 

To prohibit individuals and entities from owning more than 100 singlefamily residences, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 30 (legislative day, NOVEMBER 29), 2022 

Mr. MERKLEY introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To prohibit individuals and entities from owning more than 

100 single-family residences, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘End Hedge Fund Con5 trol of American Homes Act’’. 

6 SEC. 2. EXCISE TAX ON CERTAIN TAXPAYERS FAILING TO 

7 SELL EXCESS SINGLE-FAMILY RESIDENCES. 

8 (a) IN GENERAL.—Subtitle D of the Internal Rev9 enue Code of 1986 is amended by adding at the end the 

10 following new chapter: 


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1 ‘‘CHAPTER 50B—EXCESS SINGLE-FAMILY 

2 RESIDENCES 

‘‘Sec. 5000E. Excess single-family residences. 

3 ‘‘SEC. 5000E. EXCESS SINGLE-FAMILY RESIDENCES. 

4 ‘‘(a) IN GENERAL.—In the case of any covered tax5 payer who fails to meet the requirement of subsection (b) 

6 for any taxable year, there is hereby imposed a tax equal 

7 to the product of— 

8 ‘‘(1) $20,000, and 

9 ‘‘(2) the excess of— 

10 ‘‘(A) the number of single-family resi11 dences owned by the taxpayer as of the last day 

12 of the taxable year, over 

13 ‘‘(B) 100. 

14 ‘‘(b) REQUIREMENT.—A covered taxpayer meets the 

15 requirements of this section for any taxable year if the 

16 number of single-family residences owned by the covered 

17 taxpayer as of the last day of the taxable year is equal 

18 to or less than 90 percent of the number of single family 

19 homes owned by the covered taxpayer as of the first day 

20 of the taxable year. 

21 ‘‘(c) COVERED TAXPAYER.—For purposes of this sec22 tion— 

23 ‘‘(1) IN GENERAL.—The term ‘covered tax24 payer’ means, with respect to any taxable year, any 


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•S 5151 IS

1 person who owns more than 100 single-family resi2 dences, as determined on the first day of the taxable 

3 year. 

4 ‘‘(2) EXCLUSIONS.—Such term shall not in5 clude— 

6 ‘‘(A) a mortgage note holder that owns a 

7 single-family residence through foreclosure, 

8 ‘‘(B) a organization which is described in 

9 section 501(c)(3) and exempt from tax under 

10 section 501(a), 

11 ‘‘(C) any person primarily engaged in the 

12 construction or rehabilitation of single-family 

13 residences, or 

14 ‘‘(D) any person who owns federally sub15 sidized housing. 

16 ‘‘(3) AGGREGATION RULES.— 

17 ‘‘(A) IN GENERAL.—For purposes of this 

18 section, all persons which are treated as a sin19 gle employer under subsections (a) and (b) of 

20 section 52 shall be treated as a single taxpayer. 

21 ‘‘(B) MODIFICATIONS.—For purposes of 

22 this paragraph— 

23 ‘‘(i) section 52(a) shall be applied by 

24 substituting ‘component members’ for 

25 ‘members’, and 


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1 ‘‘(ii) for purposes of applying section 

2 52(b), the term ‘trade or business’ shall in3 clude any activity treated as a trade or 

4 business under paragraph (5) or (6) of sec5 tion 469(c) (determined without regard to 

6 the phrase ‘To the extent provided in regu7 lations’ in such paragraph (6)). 

8 ‘‘(C) COMPONENT MEMBER.—For pur9 poses of this paragraph, the term ‘component 

10 member’ has the meaning given such term by 

11 section 1563(b), except that the determination 

12 shall be made without regard to section 

13 1563(b)(2). 

14 ‘‘(d) OTHER RULES AND DEFINITIONS.—For pur15 poses of this section— 

16 ‘‘(1) SINGLE-FAMILY RESIDENCE.—The term 

17 ‘single-family residence’ means a residential property 

18 consisting of 1-to-4 dwelling units. 

19 ‘‘(2) OWN.— 

20 ‘‘(A) IN GENERAL.—The term ‘own’, with 

21 respect to a single-family residence, means hav22 ing a direct majority ownership interest in the 

23 single-family residence, regardless of the per24 centage of that ownership interest. 


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1 ‘‘(B) SPECIAL RULE FOR CERTAIN

2 SALES.— 

3 ‘‘(i) IN GENERAL.—Notwithstanding 

4 subparagraph (A), for purposes of sub5 sections (a)(2)(A) and (b), any single-fam6 ily residence which is owned by a covered 

7 taxpayer as of the first day of the taxable 

8 year and which is sold or transferred dur9 ing such taxable year by the covered tax10 payer in a sale or transfer described in 

11 clause (ii) shall be treated as a single-fam12 ily residence which is owned by the covered 

13 taxpayer as of the last day of such taxable 

14 year. 

15 ‘‘(ii) SALES DESCRIBED.—A sale or 

16 transfer is described in this clause if such 

17 sale or transfer is a sale or transfer to— 

18 ‘‘(I) a corporation or entity en19 gaged in a trade or business, 

20 ‘‘(II) a group of more than 2 in21 dividuals, or 

22 ‘‘(III) a person who owns any 

23 other single-family residence at the 

24 time of such sale. 

25 ‘‘(e) REPORTING.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall require 

2 such reporting as the Secretary determines nec3 essary or appropriate to carry out the purposes of 

4 this section, including reporting with respect to 

5 whether any person acquiring a single-family resi6 dence from a covered taxpayer owns any other sin7 gle-family residences at the time of the acquisition. 

8 ‘‘(2) FAILURE TO REPORT.— 

9 ‘‘(A) IN GENERAL.—Any person who fails 

10 to report information required under paragraph 

11 (1) or who fails to include correct information 

12 in such report shall pay a penalty of $20,000. 

13 ‘‘(B) REASONABLE CAUSE WAIVER.—No 

14 penalty shall be imposed under this paragraph 

15 with respect to any failure if it is shown that 

16 such failure is due to reasonable cause and not 

17 to willful neglect. 

18 ‘‘(C) TREATMENT OF PENALTY.—The pen19 alty under this paragraph shall be paid upon 

20 notice and demand by the Secretary, and shall 

21 be assessed and collected in the same manner 

22 as an assessable penalty under subchapter B of 

23 chapter 68.’’. 

24 (b) CERTIFICATION.— 


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1 (1) IN GENERAL.—The reporting required 

2 under section 5000E(a) of the Internal Revenue 

3 Code of 1986, as added by this section, shall include 

4 a certification from each individual to whom a sin5 gle-family residence is sold or transferred from a 

6 covered taxpayer. 

7 (2) FORM OF CERTIFICATION.—The certifi8 cation required under this subsection shall be signed 

9 by the purchaser or transferee and state the fol10 lowing: 

11 (A) The name and address of the pur12 chaser or transferee. 

13 (B) The sale is not a sale described in sec14 tion 5000E(d)(2)(B)(ii) of the Internal Revenue 

15 Code of 1986. 

16 (C) The purchaser or transferee will be 

17 subject to the penalty imposed under section 

18 5000E(e)(2) of such Code for any false certifi19 cation. 

20 (3) DEFINITIONS.—Any term used in this sub21 section which is used in section 5000E of the Inter22 nal Revenue Code of 1986 shall have the meaning 

23 give such term under such section. 


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•S 5151 IS

1 (c) CLERICAL AMENDMENT.—The table of chapters 

2 for subtitle D of the Internal Revenue Code of 1986 is 

3 amended by adding at the end the following new item: 

‘‘CHAPTER 50B—EXCESS SINGLE-FAMILY RESIDENCES’’. 

4 (d) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2022. 

7 SEC. 3. USE OF TAX REVENUES FOR DOWN PAYMENT AS8 SISTANCE GRANTS. 

9 (a) ESTABLISHMENT OF HOUSING TRUST FUND.— 

10 (1) IN GENERAL.—Subchapter A of chapter 98 

11 of the Internal Revenue Code of 1986 is amended by 

12 adding at the end the following new section: 

13 ‘‘SEC. 9512. HOUSING TRUST FUND. 

14 ‘‘(a) CREATION OF TRUST FUND.—There is estab15 lished in the Treasury of the United States a trust fund 

16 to be known as the Housing Trust Fund (hereinafter in 

17 this section referred to as the ‘Trust Fund’), consisting 

18 of such amounts as may be appropriated or credited to 

19 such Trust Fund as provided in this section and section 

20 9602(b). 

21 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here22 by appropriated to the Housing Trust Fund amounts 

23 equivalent to revenues received in the Treasury from the 

24 tax imposed by section 5000E. 


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1 ‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 

2 in the Housing Trust Fund shall be available, as provided 

3 in appropriations Acts, only for grants under section 3(b) 

4 of the End Hedge Fund Control of American Homes 

5 Act.’’. 

6 (2) CLERICAL AMENDMENT.—The table of sec7 tions for subchapter A of chapter 98 of the Internal 

8 Revenue Code of 1986 is amended by adding at the 

9 end the following new item: 

10 (b) GRANTS PROGRAM FOR DOWN PAYMENT ASSIST11 ANCE PROGRAMS.— 

12 (1) ESTABLISHMENT.—The Secretary of Hous13 ing and Urban Development shall establish a pro14 gram under which the Secretary makes grants to 

15 State housing finance agencies to establish new or 

16 supplement existing programs that provide down 

17 payment assistance to families purchasing homes 

18 within the State. 

19 (2) PRIORITY.—A State housing finance agency 

20 that receives a grant under this section shall give 

21 priority to families seeking assistance to purchase 

22 any single-family residence that is sold or trans23 ferred by a covered taxpayer (as defined in section 


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•S 5151 IS

1 5000E(c) of the Internal Revenue Code of 1986, as 

2 added by section 2). 

Æ 


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