I 
★
118TH CONGRESS 
1ST SESSION H. R. 6608 
To amend the Internal Revenue Code of 1986 to impose an excise tax 
on the failure of certain hedge funds owning excess single-family resi-
dences to dispose of such residences, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 5, 2023 
Mr. SMITH of Washington (for himself, Ms. SA´NCHEZ, and Ms. WILLIAMS of 
Georgia) introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Finan-
cial Services, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
an excise tax on the failure of certain hedge funds own-
ing excess single-family residences to dispose of such 
residences, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘End Hedge Fund Con-
trol of American Homes Act’’. 
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SEC. 2. EXCISE TAX ON CERTAIN TAXPAYERS FAILING TO 
SELL EXCESS SINGLE-FAMILY RESIDENCES. 
(a) IN GENERAL.—Subtitle D of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new chapter: 
‘‘CHAPTER 50B—EXCESS SINGLE-FAMILY 
RESIDENCES 
‘‘Sec. 5000E. Newly acquired single-family residences. 
‘‘Sec. 5000F. Excess single-family residences. 
‘‘Sec. 5000G. Definitions and other special rules. 
‘‘SEC. 5000E. NEWLY ACQUIRED SINGLE-FAMILY RESI-
DENCES. 
‘‘(a) IN GENERAL.—In the case of an applicable tax-
payer, there is hereby imposed a tax on the acquisition 
of any newly acquired single-family residence equal to 50 
percent of the fair market value of such residence. 
‘‘(b) NEWLY
ACQUIRED
SINGLE-FAMILY
RESI-
DENCE.—For purposes of this section, the term ‘newly ac-
quired single-family residence’ means any single-family 
residence which was acquired by the taxpayer in any tax-
able year which begins after the date of the enactment 
of this chapter. 
‘‘SEC. 5000F. EXCESS SINGLE-FAMILY RESIDENCES. 
‘‘(a) IN GENERAL.—In the case of an applicable tax-
payer who fails to meet the requirements of subsection (b), 
there is hereby imposed a tax equal to the product of— 
‘‘(1) $50,000, and 
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‘‘(2) the excess of— 
‘‘(A) the number of applicable single-family 
residences owned by the taxpayer as of the last 
day of the taxable year, over 
‘‘(B) the sum of— 
‘‘(i) 50 (zero in the case of any hedge 
fund taxpayer), plus 
‘‘(ii) the maximum permissible units 
for the taxable year. 
‘‘(b) REQUIREMENT.— 
‘‘(1) IN
GENERAL.—An applicable taxpayer 
meets the requirement of this subsection for any tax-
able year if the number of applicable single-family 
residences owned by the taxpayer as of the last day 
of the taxable year is equal to or less than the max-
imum permissible units determined with respect to 
such taxpayer for such taxable year. 
‘‘(2) SPECIAL RULE FOR CERTAIN SALES.—For 
purposes of applying paragraph (1), a single-family 
residence which is sold or transferred in a disquali-
fied sale during the taxable year shall be treated as 
a single-family residence which is owned by the ap-
plicable taxpayer as of the last day of such taxable 
year. 
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‘‘(c) MAXIMUM PERMISSIBLE UNITS.—The max-
imum permissible units with respect to any applicable tax-
payer for any taxable year shall be determined as follows: 
‘‘In the case of— 
The maximum permis-
sible units for a hedge 
fund taxpayer is— 
The maximum permis-
sible units for any other 
applicable taxpayer is— 
the first full taxable year 
beginning after the ap-
plicable date . . . 
90 percent of the num-
ber of applicable sin-
gle-family residences 
owned by the taxpayer 
on the applicable date 
50 plus 90 percent of the 
number of applicable 
single-family resi-
dences owned by the 
taxpayer on the appli-
cable date 
the second taxable year 
beginning after the ap-
plicable date . . . 
80 percent of the num-
ber of applicable sin-
gle-family residences 
owned by the taxpayer 
on the applicable date 
50 plus 80 percent of the 
number of applicable 
single-family resi-
dences owned by the 
taxpayer on the appli-
cable date 
the third taxable year be-
ginning after the ap-
plicable date . . . 
70 percent of the num-
ber of applicable sin-
gle-family residences 
owned by the taxpayer 
on the applicable date 
50 plus 70 percent of the 
number of applicable 
single-family resi-
dences owned by the 
taxpayer on the appli-
cable date 
the fourth taxable year 
beginning after the ap-
plicable date . . . 
60 percent of the num-
ber of applicable sin-
gle-family residences 
owned by the taxpayer 
on the applicable date 
50 plus 60 percent of the 
number of applicable 
single-family resi-
dences owned by the 
taxpayer on the appli-
cable date 
the fifth taxable year be-
ginning after the ap-
plicable date . . . 
50 percent of the num-
ber of applicable sin-
gle-family residences 
owned by the taxpayer 
on the applicable date 
50 plus 50 percent of the 
number of applicable 
single-family resi-
dences owned by the 
taxpayer on the appli-
cable date 
the sixth taxable year be-
ginning after the ap-
plicable date . . . 
40 percent of the num-
ber of applicable sin-
gle-family residences 
owned by the taxpayer 
on the applicable date 
50 plus 40 percent of the 
number of applicable 
single-family resi-
dences owned by the 
taxpayer on the appli-
cable date 
the seventh taxable year 
beginning after the ap-
plicable date . . . 
30 percent of the num-
ber of applicable sin-
gle-family residences 
owned by the taxpayer 
on the applicable date 
50 plus 30 percent of the 
number of applicable 
single-family resi-
dences owned by the 
taxpayer on the appli-
cable date 
the eighth taxable year 
beginning after the ap-
plicable date . . . 
20 percent of the num-
ber of applicable sin-
gle-family residences 
owned by the taxpayer 
on the applicable date 
50 plus 20 percent of the 
number of applicable 
single-family resi-
dences owned by the 
taxpayer on the appli-
cable date 
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‘‘In the case of— 
The maximum permis-
sible units for a hedge 
fund taxpayer is— 
The maximum permis-
sible units for any other 
applicable taxpayer is— 
the ninth taxable year 
beginning after the ap-
plicable date . . . 
10 percent of the num-
ber of applicable sin-
gle-family residences 
owned by the taxpayer 
on the applicable date 
50 plus 10 percent of the 
number of applicable 
single-family resi-
dences owned by the 
taxpayer on the appli-
cable date 
any taxable year begin-
ning more than 9 
years after the applica-
ble date . . . 
50. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) 
APPLICABLE
SINGLE-FAMILY
RESI-
DENCE.—The term ‘applicable single-family resi-
dence’ means any single-family residence which was 
acquired on or before the applicable date. 
‘‘(2) APPLICABLE DATE.— 
‘‘(A) IN GENERAL.—The term ‘applicable 
date’ means— 
‘‘(i) the last day of the first full tax-
able year ending on or after the date of the 
enactment of this chapter, or 
‘‘(ii) in the case of any taxpayer de-
scribed in subparagraph (B), the date pro-
vided in such subparagraph. 
‘‘(B) TAXPAYERS CHANGING STATUS.— 
‘‘(i) IN GENERAL.—In the case of any 
applicable taxpayer described in clause (ii), 
the applicable date means the last day of 
the taxable year immediately preceding the 
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‘‘(B) is a fiduciary with respect to such in-
vestors. 
‘‘(2) APPLICABLE ENTITY.— 
‘‘(A) IN GENERAL.—The term ‘applicable 
entity’ means— 
‘‘(i) any partnership, 
‘‘(ii) any corporation, or 
‘‘(iii) any real estate investment trust. 
‘‘(B) EXCEPTIONS.—The term ‘applicable 
entity’ shall not include— 
‘‘(i) an organization which is de-
scribed in section 501(c)(3) and exempt 
from tax under section 501(a), or 
‘‘(ii) an organization primarily en-
gaged in the construction or rehabilitation 
of single-family residences. 
‘‘(b) SINGLE-FAMILY RESIDENCE.—For purposes of 
this chapter— 
‘‘(1) IN
GENERAL.—The term ‘single-family 
residence’ means a residential property consisting of 
1-to-4 dwelling units. 
‘‘(2) EXCEPTIONS.—Such term shall not in-
clude— 
‘‘(A) any unoccupied single-family resi-
dence acquired through foreclosure, 
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‘‘(B) any single-family residence that is— 
‘‘(i) not rented or leased, and 
‘‘(ii) used as the principal residence 
(within the meaning of section 121) of any 
person who has an ownership interest in 
the applicable taxpayer, or 
‘‘(C) any single-family residence con-
structed, acquired, or operated with Federal ap-
propriated funding sources. 
‘‘(c) ACQUISITION; OWNERSHIP.—For purposes of 
this chapter, an applicable taxpayer shall be treated— 
‘‘(1) as acquiring a single-family residence if 
the applicable taxpayer acquires a majority owner-
ship interest in the single-family residence, regard-
less of the percentage of that ownership interest, 
and 
‘‘(2) as owning a single-family residence if the 
applicable taxpayer owns a majority ownership inter-
est in the single-family residence, regardless of the 
percentage of that ownership interest. 
‘‘(d) DISQUALIFIED SALE.—For purposes of this 
chapter, the term ‘disqualified sale’ means any sale or 
transfer to— 
‘‘(1) a corporation or other entity engaged in a 
trade or business, or 
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‘‘(2) an individual who owns any other single- 
family residence at the time of such sale or transfer. 
‘‘(e) AGGREGATION RULES.— 
‘‘(1) IN GENERAL.—For purposes of this chap-
ter, all persons which are treated as a single em-
ployer under subsections (a) and (b) of section 52 
shall be treated as a single person. 
‘‘(2) MODIFICATIONS.—For purposes of this 
subsection— 
‘‘(A) section 52(a) shall be applied by sub-
stituting ‘component members’ for ‘members’, 
and 
‘‘(B) for purposes of applying section 
52(b), the term ‘trade or business’ shall include 
any activity treated as a trade or business 
under paragraph (5) or (6) of section 469(c) 
(determined without regard to the phrase ‘To 
the extent provided in regulations’ in such para-
graph (6)). 
‘‘(3) COMPONENT MEMBER.—For purposes of 
this paragraph, the term ‘component member’ has 
the meaning given such term by section 1563(b), ex-
cept that the determination shall be made without 
regard to section 1563(b)(2). 
‘‘(f) REPORTING.— 
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‘‘(1) IN GENERAL.—The Secretary shall require 
such reporting as the Secretary determines nec-
essary or appropriate to carry out the purposes of 
this section, including reporting with respect to— 
‘‘(A) the dates on which single-family resi-
dences owned by an applicable taxpayer were 
acquired by such taxpayer, and 
‘‘(B) whether any person acquiring a sin-
gle-family residence from an applicable taxpayer 
owns any other single-family residences at the 
time of the acquisition. 
‘‘(2) FAILURE TO REPORT.— 
‘‘(A) IN GENERAL.—Any person who fails 
to report information required under paragraph 
(1) or who fails to include correct information 
in such report shall pay a penalty of $20,000. 
‘‘(B) REASONABLE
CAUSE
WAIVER.—No 
penalty shall be imposed under this paragraph 
with respect to any failure if it is shown that 
such failure is due to reasonable cause and not 
to willful neglect. 
‘‘(C) TREATMENT OF PENALTY.—The pen-
alty under this paragraph shall be paid upon 
notice and demand by the Secretary, and shall 
be assessed and collected in the same manner 
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as an assessable penalty under subchapter B of 
chapter 68.’’. 
(b) TAX FORM.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of the 
Treasury (or the Secretary’s delegate) shall publish a form 
to be used for calculating the amount of tax owned under 
chapter 50B of the Internal Revenue Code of 1986 (as 
added by subsection (a)). 
(c) CERTIFICATION.— 
(1) IN
GENERAL.—The reporting required 
under section 5000G(f)(1)(B) of the Internal Rev-
enue Code of 1986, as added by subsection (a), shall 
include a certification from each individual to whom 
a single-family residence is sold or transferred from 
an applicable taxpayer. 
(2) FORM
OF
CERTIFICATION.—The certifi-
cation required under this subsection shall be signed 
by the purchaser or transferee and state the fol-
lowing: 
(A) The name and address of the pur-
chaser or transferee. 
(B) The sale is not a sale disqualified sale 
(as defined in section 5000G(d) of the Internal 
Revenue Code of 1986, as added by this sec-
tion). 
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(C) The purchaser or transferee will be 
subject to the penalty imposed under section 
5000G(f)(2) of such Code for any false certifi-
cation. 
(3) DEFINITIONS.—Any term used in this sub-
section which is used in chapter 50B of the Internal 
Revenue Code of 1986 (as added by this section) 
shall have the meaning give such term under such 
chapter. 
(d) CLERICAL AMENDMENT.—The table of chapters 
for subtitle D of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item: 
‘‘CHAPTER 50B—EXCESS SINGLE-FAMILY RESIDENCES’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of enactment of this Act. 
SEC. 3. USE OF TAX REVENUES FOR DOWN PAYMENT AS-
SISTANCE GRANTS. 
(a) ESTABLISHMENT OF HOUSING DOWNPAYMENT 
TRUST FUND.— 
(1) IN GENERAL.—Subchapter A of chapter 98 
of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new section: 
‘‘SEC. 9512. HOUSING DOWNPAYMENT TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
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to be known as the Housing Downpayment Trust Fund 
(hereinafter in this section referred to as the ‘Trust 
Fund’), consisting of such amounts as may be appro-
priated or credited to such Trust Fund as provided in this 
section and section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Trust Fund amounts equivalent to 
revenues received in the Treasury from the tax imposed 
by sections 5000E and 5000F. 
‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 
in the Trust Fund shall be available, as provided in appro-
priations Acts, only for grants under section 3(b) of the 
End Hedge Fund Control of American Homes Act.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter A of chapter 98 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new item: 
‘‘Sec. 9512. Housing Downpayment Trust Fund.’’. 
(b) GRANTS PROGRAM FOR DOWN PAYMENT ASSIST-
ANCE PROGRAMS.— 
(1) ESTABLISHMENT.—The Secretary of Hous-
ing and Urban Development shall establish a pro-
gram under which the Secretary makes grants to 
State housing finance agencies to establish new or 
supplement existing programs that provide down 
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payment assistance to families purchasing homes 
within the State. 
(2) PRIORITY.—A State housing finance agency 
that receives a grant under this section shall give 
priority to families seeking assistance to purchase 
any single-family residence that is sold or trans-
ferred by an applicable taxpayer (as defined in sec-
tion 5000G of the Internal Revenue Code of 1986, 
as added by section 2). 
Æ 
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