SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Wall Street Land-
lords Act of 2026’’. 
SEC. 2. DISALLOWANCE OF DEDUCTION OF CERTAIN EX-
PENSES RELATED TO SINGLE-FAMILY HOMES 
HELD BY SPECIFIED LARGE INVESTORS. 
(a) IN GENERAL.—Part IX of subchapter B of Chap-
ter 1 of subtitle A of the Internal Revenue Code of 1986 
is amended by adding at the end the following new section: 
‘‘SEC. 280I. CERTAIN EXPENSES RELATED TO SINGLE-FAM-
ILY HOMES HELD BY SPECIFIED LARGE IN-
VESTORS. 
‘‘(a) IN GENERAL.—In the case of a specified large 
investor, no deduction shall be allowed under this chapter 
for the following expenses relating to the ownership of a 
single-family home: 
‘‘(1) Amounts paid or incurred for the interest 
on a mortgage relating to such single-family home or 
to insure such single-family home. 
‘‘(2) Depreciation of such single-family home. 
‘‘(b) SPECIFIED LARGE INVESTOR.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘specified large 
investor’ means any person for any taxable year if 
the aggregate fair market value of all assets of such 
person (reduced by the aggregate debts of the tax-
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payer) exceeds $100,000,000 at any time during 
such taxable year. 
‘‘(2) TREATMENT OF CONTROLLED GROUPS.— 
For purposes of this subsection— 
‘‘(A) IN GENERAL.—All persons which are 
part of a controlled group (within the meaning 
of section 1563(a) applied by substituting ‘more 
than 50 percent’ for ‘at least 80 percent’ each 
place it appears) shall be treated as 1 person. 
‘‘(B) NONINCORPORATED PERSONS UNDER 
COMMON
CONTROL.—Under 
regulations 
or 
other guidance provided by the Secretary, prin-
ciples similar to the principles of subparagraph 
(A) shall apply to a group of persons under 
common control where 1 or more of such per-
sons is not a corporation. 
‘‘(3) GOVERNMENT
ENTITIES
AND
CERTAIN 
TAX-EXEMPT
ENTITIES.—Such term shall not in-
clude either of the following: 
‘‘(A) Any governmental entity. 
‘‘(B) Any organization which is described 
in section 501(c)(3) and exempt from tax under 
section 501(a). 
‘‘(c) SINGLE-FAMILY HOME.— 
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‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘single-family home’ means any real 
property located in the United States if such prop-
erty includes at least 1 dwelling unit and not more 
than 4 dwelling units. 
‘‘(2) EXCEPTION
FOR
FEDERALLY-ASSISTED 
BUILDINGS.—For purposes of this section— 
‘‘(A) IN GENERAL.—Such term shall not 
include any federally-assisted building. 
‘‘(B) FEDERALLY-ASSISTED
BUILDING.— 
The term ‘federally-assisted building’ means 
any building— 
‘‘(i) which is substantially assisted, fi-
nanced, or operated under section 8 of the 
United States Housing Act of 1937, sec-
tion 221(d)(3), 221(d)(4), or 236 of the 
National Housing Act, section 515 of the 
Housing Act of 1949, or any other housing 
program administered by the Department 
of Housing and Urban Development or by 
the Rural Housing Service of the Depart-
ment of Agriculture, 
‘‘(ii) with respect to which a credit is 
allowed to the taxpayer under section 42, 
or 
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‘‘(iii) for which financing is provided 
by a qualified bond (within the meaning of 
section 141). 
‘‘(d) EXCEPTIONS.— 
‘‘(1) PRINCIPAL RESIDENCE.—In the case of a 
specified large investor who is an individual, sub-
section (a) shall not apply to any single-family home 
if such home is used as the principal residence of 
such investor. 
‘‘(2) ORIGINAL
CONSTRUCTION
OR
SUBSTAN-
TIAL
REHABILITATION.—Subsection (a) shall not 
apply with respect to a single-family home originally 
constructed or substantially rehabilitated (as defined 
in section 47(c)) by the taxpayer.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part IX of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
280H the following new item: 
‘‘Sec. 280I. Certain expenses related to single-family homes held by specified 
large investors.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred and 
depreciation that occurs after the date that is 18 months 
after the date of the enactment of this Act. 
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SEC. 3. EXCISE TAX ON TRANSFERS OF SINGLE-FAMILY 
HOMES BY SPECIFIED LARGE INVESTORS. 
(a) IN GENERAL.—Chapter 36 of subtitle D of the 
Internal Revenue Code of 1986 is amended by inserting 
after subchapter D the following new subchapter: 
‘‘Subchapter E—Tax on Transfers of Single- 
Family Homes by Specified Large Investors 
‘‘Sec. 4491. Tax on transfers of single-family homes by specified large inves-
tors. 
‘‘SEC. 4491. TAX ON TRANSFERS OF SINGLE-FAMILY HOMES 
BY SPECIFIED LARGE INVESTORS. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on the sale or transfer of a single-family home by a speci-
fied large investor in an amount equal to the sale price 
of the single-family home. 
‘‘(b) SPECIFIED LARGE INVESTOR; SINGLE-FAMILY 
HOME.—For purposes of this section, the terms ‘specified 
large investor’ and ‘single-family home’ shall have the re-
spective meanings given such terms in section 280I. 
‘‘(c) SPECIAL RULES.—Rules similar to the rules of 
subsections (b)(2), (d)(1), and (d)(2) of section 280I shall 
apply for purposes of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 36 of subtitle D of such Code is 
amended by adding after the item relating to subchapter 
D the following new item: 
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‘‘SUBCHAPTER E. TAX ON TRANSFERS OF SINGLE-FAMILY HOMES BY 
SPECIFIED LARGE INVESTORS.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales and transfers occurring 
after the date that is 18 months after the date of the en-
actment of this Act. 
SEC. 4. LOW-INCOME HOUSING ASSISTANCE. 
(a) DEPOSIT OF FUNDS.—Amounts collected in any 
penalty under section 3 shall be deposited in the Housing 
Trust Fund established under section 1338 of the Federal 
Housing Enterprises Financial Safety and Soundness Act 
of 1992 (12 U.S.C. 4568). 
(b) USE OF FUNDS.—To the extent provided for in 
advance in appropriations Acts, the amounts deposited in 
the Fund shall be used to increase and preserve the supply 
of rental housing affordable to extremely low- and very 
low-income families, including homeless families, in ac-
cordance with such section 1338. 
SEC. 5. PROHIBITIONS ON FEDERAL MORTGAGE ASSIST-
ANCE. 
(a) FANNIE MAE AND FREDDIE MAC.—Subpart A of 
part 2 of subtitle A of title XIII of the Housing and Com-
munity Development Act of 1992 (12 U.S.C. 4541 et seq.) 
is amended by adding at the end the following new section: 
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‘‘SEC. 1329. PROHIBITION RELATING TO SPECIFIED LARGE 
INVESTORS. 
‘‘The Director shall, by regulation, prohibit the enter-
prises from newly purchasing any mortgage on a single- 
family housing or any portion thereof (or any interest in 
such a mortgage), and from newly lending on the security 
of or securitizing any such mortgage under which the 
mortgagee is a specified large investor (as such term is 
defined in of the Internal Revenue Code of 1986).’’. 
(b) GINNIE MAE.—Section 302(c) of the National 
Housing Act (12 U.S.C. 1717(c)) is amended by adding 
at the end the following new paragraph: 
‘‘(6) The Association may not newly guarantee 
the payment of principal of or interest on any trust 
certificate or other security based or backed by a 
trust or pool that contains, or purchase or acquire, 
any mortgage under which the mortgagee is a speci-
fied large investor (as such term is defined in section 
280I(b) of the Internal Revenue Code of 1986).’’. 
Æ 
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