II 

118TH CONGRESS 

1ST SESSION S. 551 

To reduce the excessive appreciation of United States residential real estate 

due to foreign purchases. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2023 

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

to the Committee on Finance 

A BILL 

To reduce the excessive appreciation of United States 

residential real estate due to foreign purchases. 

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 ‘‘Home Advantage for 

5 American Families Act of 2023’’. 

6 SEC. 2. EXPANSION OF TOOLS TO COMBAT MONEY LAUN7 DERING. 

8 (a) IN GENERAL.—Subchapter II of chapter 53 of 

9 title 31, United States Code, is amended by adding at the 

10 end the following: 


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1 ‘‘§ 5337. Reports on applicable residential property 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) APPLICABLE RESIDENTIAL PROPERTY.— 

4 The term ‘applicable residential property’ means 

5 property described in section 1445(f) of the Internal 

6 Revenue Code of 1986 and which is located in any 

7 of the 15 largest metropolitan statistical areas by 

8 population (as determined by the Office of Manage9 ment and Budget). 

10 ‘‘(2) FOREIGN PERSON.—The term ‘foreign per11 son’ means any person that is not a citizen or per12 manent resident of the United States. 

13 ‘‘(3) SALE OF APPLICABLE RESIDENTIAL PROP14 ERTY.—The term ‘sale of applicable residential prop15 erty’ means the sale of an interest in applicable resi16 dential property. 

17 ‘‘(b) REPORTS.—Any foreign person involved in a 

18 transaction related to the sale of applicable residential 

19 property shall submit to the Secretary of the Treasury a 

20 report with respect to the transaction or any related trans21 action that contains— 

22 ‘‘(1) the name and any other identification in23 formation that the Secretary determines is necessary 

24 of the individual purchasing the applicable residen25 tial property; 


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1 ‘‘(2) the amount and source of the funds re2 ceived by the seller, as determined by the Secretary; 

3 ‘‘(3) the date and nature of the transaction; 

4 and 

5 ‘‘(4) any other information, including the iden6 tification of the person filing the report, that the 

7 Secretary determines is necessary. 

8 ‘‘(c) REGULATIONS.—Not later than 180 days after 

9 the date of enactment of this section, the Secretary shall 

10 promulgate regulations carrying out this section.’’. 

11 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

12 The table of sections for chapter 53 of title 31, United 

13 States Code, is amended by adding at the end the fol14 lowing: 

‘‘5337. Reports on applicable residential property.’’. 

15 (c) LIST OF TOP 15 LARGEST METROPOLITAN STA16 TISTICAL AREAS.—Not less than every 5 years, the Direc17 tor of the Office of Management and Budget shall update 

18 the list of the 15 largest metropolitan statistical areas by 

19 population. 

20 SEC. 3. INCREASED WITHHOLDING ON SALE DISPOSITION 

21 OF CERTAIN UNITED STATES REAL PROP22 ERTY INTERESTS. 

23 (a) IN GENERAL.—Section 1445 of the Internal Rev24 enue Code of 1986 is amended by redesignating subsection 


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1 (f) as subsection (g) and by inserting after subsection (e) 

2 the following new subsection: 

3 ‘‘(f) SPECIAL RULE FOR CERTAIN DISPOSITIONS OF

4 RESIDENTIAL REAL PROPERTY.— 

5 ‘‘(1) IN GENERAL.—In the case of the disposi6 tion of any applicable residential property, sub7 section (a) shall be applied by substituting ‘30 per8 cent’ for ‘15 percent’. 

9 ‘‘(2) APPLICABLE RESIDENTIAL PROPERTY.— 

10 For purposes of this subsection, the term ‘applicable 

11 residential property’ means any interest which— 

12 ‘‘(A) is an interest described in section 

13 897(c)(1)(A)(i), and 

14 ‘‘(B) is an interest in residential real prop15 erty.’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 subsection (a) shall apply to dispositions after the date 

18 which is 60 days after the date of the enactment of this 

19 Act. 

20 SEC. 4. INCREASE IN LOW-INCOME HOUSING TAX CREDIT 

21 STATE CEILING. 

22 (a) IN GENERAL.—Section 42(h)(3)(C) of the Inter23 nal Revenue Code of 1986 is amended by striking ‘‘plus’’ 

24 at the end of clause (iii), by striking the period at the 


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1 end of clause (iv) and inserting ‘‘, plus’’, and by inserting 

2 after clause (iv) the following: 

3 ‘‘(v) the qualified single-family hous4 ing amount determined under subpara5 graph (J).’’. 

6 (b) QUALIFIED SINGLE-FAMILY HOUSING

7 AMOUNT.— 

8 (1) IN GENERAL.—Section 42(h)(3) of the In9 ternal Revenue Code of 1986 is amended by adding 

10 at the end the following new subparagraph: 

11 ‘‘(J) QUALIFIED SINGLE-FAMILY HOUSING

12 AMOUNT.—The qualified single-family housing 

13 amount determined under this subparagraph 

14 for any calendar year is an amount equal to the 

15 sum of— 

16 ‘‘(i) 10 percent of the amount deter17 mined under subparagraph (C)(ii) for such 

18 calendar year (determined after application 

19 of subparagraph (H)), 

20 ‘‘(ii) the excess (if any) of the amount 

21 described in clause (i) for the preceding 

22 calendar year over the amounts allocated 

23 to projects described in paragraph (9) for 

24 such preceding calendar year, 


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1 ‘‘(iii) the amount allocated within the 

2 State (not in excess of the amount deter3 mined under this subparagraph for the 

4 preceding calendar year reduced by the 

5 amount described in clause (ii) for the sec6 ond preceding calendar year) for any 

7 project— 

8 ‘‘(I) which is described in para9 graph (9) and which fails to meet the 

10 10 percent test under paragraph 

11 (1)(E)(ii) on a date after the close of 

12 the calendar year in which the alloca13 tion was made, 

14 ‘‘(II) which does not become a 

15 qualified low-income housing project 

16 described in paragraph (9) within the 

17 period required by this section or the 

18 terms of the allocation, or 

19 ‘‘(III) which is described in para20 graph (9) and with respect to which 

21 an allocation is cancelled by mutual 

22 consent of the housing credit agency 

23 and the allocation recipient, plus 

24 ‘‘(iv) the amount, if any, determined 

25 under subparagraph (D), applied— 


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1 ‘‘(I) by substituting ‘unused 

2 qualified single-family housing carry3 over’ for ‘unused housing credit carry4 over’ in clause (i) thereof, 

5 ‘‘(II) without regard to clause (ii) 

6 thereof, 

7 ‘‘(III) by substituting ‘unused 

8 qualified single-family housing 

9 carryovers’ for ‘unused housing credit 

10 carryovers’ in clause (iii) thereof, and 

11 ‘‘(IV) by substituting ‘an amount 

12 equal to its entire qualified single13 family housing amount to projects de14 scribed in paragraph (9)’ for ‘entire 

15 State housing credit ceiling (deter16 mined without regard to amounts de17 scribed in subparagraph (C)(v))’ in 

18 clause (iv)(I) thereof.’’. 

19 (2) CONFORMING AMENDMENTS.— 

20 (A) Section 42(h)(3)(C) of such Code is 

21 amended by inserting ‘‘(other than amounts al22 located from the qualified single-family housing 

23 amount)’’ after ‘‘the housing credit dollar 

24 amount previously allocated within the State’’. 


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1 (B) Section 42(h)(3)(D) of such Code is 

2 amended by inserting ‘‘(determined without re3 gard to amounts described in subparagraph 

4 (C)(v))’’ after ‘‘entire State housing credit ceil5 ing’’. 

6 (c) SET ASIDE OF INCREASED AMOUNTS.—Section 

7 42(h) of the Internal Revenue Code of 1986 is amended 

8 by adding at the end the following new paragraph: 

9 ‘‘(9) SET ASIDE OF QUALIFIED SINGLE-FAMILY

10 HOUSING AMOUNT.—The portion of the State hous11 ing credit ceiling which is equal to the qualified sin12 gle-family housing amount for any calendar year 

13 shall be allocated to projects consisting of 1 to 4 

14 dwelling units that are located in qualified census 

15 tracts (as defined in subsection (d)(5)(B)(i)).’’. 

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

17 this section shall apply to allocations made for calendar 

18 years beginning after the date of the enactment of this 

19 Act. 

Æ 


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