This would be incredibly great news for American citizens especially young people.
Blackrock and Vanguard Stocks are about to be blocked from buying and inflating the housing market.
Hedge funds' Encroachment on the Housing Market Faces Potential Ban through Proposed Legislation.
A comprehensive new bill introduced by U.S. Senator Jeff Merkley and Washington Rep. Adam Smith aims to curb the acquisition of single-family homes by hedge funds, private equity firms, and investment trusts. The legislation, known as the "End Hedge Fund Control of American Homes Act," proposes a ten-year plan requiring these entities to divest completely from single-family home ownership. Large funds would be mandated to sell off 10 percent of their homes annually over the specified period.
The bill further empowers the Internal Revenue Service to impose taxes on funds that fail to comply with the divestment requirements. Co-sponsored by U.S. Representatives Nikema Williams and Linda Sánchez in the House, and Senator Tina Smith in the Senate, the legislation has gained support from advocacy groups such as the Private Equity Stakeholder Project, Consumer Action, and the National Consumer Law Center.
The bill defines a hedge fund as partnerships, corporations, or real estate investment trusts amassing $50 million or more in net value or assets under management. Nonprofits and construction-focused companies are exempt from these regulations. Fines and taxes are proposed for funds failing to report purchases or divest within the stipulated timeframe, with penalties contributing to a housing down payment trust fund.
Merkley and Smith reference data from an Urban Institute report indicating a significant increase in single-family home ownership by hedge funds and institutional investors from 2011 to June 2022. The surge, particularly notable in Black and Latino neighborhoods, has become more pronounced during the pandemic, with 28 percent of homes sold in 2022 reportedly going to institutional investors. The bill addresses concerns about potential consequences, such as limiting access to affordable housing and promoting a generation of lifelong renters, while emphasizing the need for Congress to act promptly in support of safe and accessible homeownership for American families.
Blackrock and Vanguard Stocks are about to be blocked from buying and inflating the housing market.
Hedge funds' Encroachment on the Housing Market Faces Potential Ban through Proposed Legislation.
A comprehensive new bill introduced by U.S. Senator Jeff Merkley and Washington Rep. Adam Smith aims to curb the acquisition of single-family homes by hedge funds, private equity firms, and investment trusts. The legislation, known as the "End Hedge Fund Control of American Homes Act," proposes a ten-year plan requiring these entities to divest completely from single-family home ownership. Large funds would be mandated to sell off 10 percent of their homes annually over the specified period.
The bill further empowers the Internal Revenue Service to impose taxes on funds that fail to comply with the divestment requirements. Co-sponsored by U.S. Representatives Nikema Williams and Linda Sánchez in the House, and Senator Tina Smith in the Senate, the legislation has gained support from advocacy groups such as the Private Equity Stakeholder Project, Consumer Action, and the National Consumer Law Center.
The bill defines a hedge fund as partnerships, corporations, or real estate investment trusts amassing $50 million or more in net value or assets under management. Nonprofits and construction-focused companies are exempt from these regulations. Fines and taxes are proposed for funds failing to report purchases or divest within the stipulated timeframe, with penalties contributing to a housing down payment trust fund.
Merkley and Smith reference data from an Urban Institute report indicating a significant increase in single-family home ownership by hedge funds and institutional investors from 2011 to June 2022. The surge, particularly notable in Black and Latino neighborhoods, has become more pronounced during the pandemic, with 28 percent of homes sold in 2022 reportedly going to institutional investors. The bill addresses concerns about potential consequences, such as limiting access to affordable housing and promoting a generation of lifelong renters, while emphasizing the need for Congress to act promptly in support of safe and accessible homeownership for American families.