Democrats Introduce Bill Banning Hedge Funds From Owning Single-Family Homes – By Sharon Zhang (Truthout) / Dec 7, 2023
The bill would force hedge funds to sell all of their single-family home stock over the next 10 years.
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Democrats have introduced bicameral legislation this week to take a step toward getting Wall Street out of the housing market amid a crisis during which house prices have soared to record highs.
The bill would ban hedge funds from buying and owning single-family homes. The legislation would require hedge funds to sell off their stock of single-family homes over the next 10 years and would then implement an outright ban. For every single-family home a hedge fund owns over a certain limit each year, it would be subject to a tax penalty, the revenues from which would be used for down payment assistance programs for those seeking to buy their first home from a hedge fund.
The End Hedge Fund Control of American Homes Act of 2023 was introduced by Rep. Adam Smith (D-Washington) and Sen. Jeff Merkley (D-Oregon). The lawmakers say that the only purpose for hedge funds to own homes is to make profits and that such investing has only made it more difficult for working class Americans to afford to buy a home.
