119-hr3745

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3745 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3745

 To prohibit individuals and entities from owning more than 75 single-
 family residences, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 June 5, 2025

 Ms. Adams (for herself, Mrs. McIver, Mr. Fields, and Mr. Thompson of 
 Mississippi) introduced the following bill; which was referred to the 
 Committee on Ways and Means, and in addition to the Committee on 
 Financial Services, for a period to be subsequently determined by the 
 Speaker, in each case for consideration of such provisions as fall 
 within the jurisdiction of the committee concerned

_______________________________________________________________________

 A BILL

 To prohibit individuals and entities from owning more than 75 single-
 family residences, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``American Neighborhoods Protection 
Act of 2025''.

SEC. 2. EXCISE TAX ON CERTAIN TAXPAYERS FAILING TO SELL EXCESS SINGLE-
 FAMILY RESIDENCES.

    (a) In General.--Subtitle D of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter:

 ``CHAPTER 50B--EXCESS SINGLE-FAMILY RESIDENCES

``

Sec. 5000E. Excess single-family residences.

``

SEC. 5000E. EXCESS SINGLE-FAMILY RESIDENCES.

 ``

    (a) In General.--There is hereby imposed on each covered taxpayer 
for each taxable year a tax in an amount equal to the product of--
 ``

    (1) $10,000, and
 ``

    (2) the excess of--
 ``
        (A) the number of single-family residences owned 
 by the taxpayer as of the last day of the taxable year, 
 over
 ``
        (B) 75.
 ``

    (b) Covered Taxpayer.--For purposes of this section--
 ``

    (1) In general.--The term `covered taxpayer' means a 
 taxpayer that is not--
 ``
        (A) a mortgage note holder that owns a single-
 family residence through foreclosure,
 ``
        (B) a organization which is described in 
 subsection 501
            (c) (3) and exempt from tax under 

section 501

    (a) ,
 ``
            (C) a person primarily engaged in the 
 construction or rehabilitation of single-family 
 residences, or
 ``
            (D) a person who owns federally subsidized 
 housing.
 ``

    (2) Aggregation rules.--
 ``
        (A) In general.--For purposes of this section, 
 all persons which are treated as a single employer 
 under subsections

    (a) and

    (b) of 

section 52 shall be 
 treated as a single taxpayer.
 ``
        (B) Modifications.--For purposes of this 
 paragraph--
 ``
            (i) section 52

    (a) shall be applied by 
 substituting `component members' for `members', 
 and
 ``
            (ii) for purposes of applying subsection

    (b) , the term `trade or business' shall include 
 any activity treated as a trade or business 
 under paragraph

    (5) or

    (6) of subsection
            (c) (determined without regard to the phrase `to 
 the extent provided in regulations' in such 
 paragraph

    (6) ).
 ``
            (C) Component member.--For purposes of this 
 paragraph, the term `component member' has the meaning 
 given such term by 

section 1563

    (b) , except that the 
 determination shall be made without regard to 
 subsection

    (b)

    (2) .
 ``
            (c) Other Rules and 

=== Definitions. ===
-For purposes of this section:
 ``

    (1) Single-family residence.--The term `single-family 
 residence' means a residential property consisting not more 
 than 4 dwelling units.
 ``

    (2) Own.--
 ``
        (A) In general.--The term `own', with respect to 
 a single-family residence, means having a direct 
 majority ownership interest in the single-family 
 residence.
 ``
        (B) Special rule for certain sales.--
 ``
            (i) In general.--Notwithstanding 
 subparagraph
        (A) , for purposes of subsections

    (a)

    (2)
        (A) , any single-family residence which is 
 owned by a covered taxpayer as of the first day 
 of the taxable year and which is sold or 
 transferred during such taxable year by the 
 covered taxpayer in a sale or transfer 
 described in clause
            (ii) shall be treated as a 
 single-family residence which is owned by the 
 covered taxpayer as of the last day of such 
 taxable year.
 ``
            (ii) Sales described.--A sale or transfer 
 is described in this clause if such sale or 
 transfer is a sale or transfer to--
 ``
            (I) a corporation or entity 
 engaged in a trade or business,
 ``
            (II) a group of more than 2 
 individuals, or
 ``
            (III) a person who owns any other 
 single-family residence at the time of 
 such sale.
 ``
            (d) Reporting.--
 ``

    (1) In general.--The Secretary shall require such 
 reporting as the Secretary determines necessary or appropriate 
 to carry out the purposes of this section, including requiring 
 a certification of the following from each purchaser or 
 transferee of a single-family residence:
 ``
        (A) The name and address of the purchaser or 
 transferee.
 ``
        (B) Identify whether the sale is a sale described 
 in subsection
            (c) (2)
        (B)
            (ii) of the Internal Revenue 
 Code 1986.
 ``

    (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 $50,000.
 ``
        (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 penalty under this 
 paragraph shall be paid upon notice and demand by the 
 Secretary, and shall be assessed and collected in the 
 same manner as an assessable penalty under subchapter B 
 of chapter 68.''.

    (b) 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''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 3. USE OF TAX REVENUES FOR DOWN PAYMENT ASSISTANCE GRANTS.

    (a) Establishment of Housing 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 TRUST FUND.

 ``

    (a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the Housing Trust Fund 
(hereinafter in this section referred to as the `Trust Fund'), 
consisting of such amounts as may be appropriated or credited to such 
Trust Fund as provided in this section and 

section 9602

    (b) .
 ``

    (b) Transfers to Trust Fund.--There are hereby appropriated to 
the Housing Trust Fund amounts equivalent to revenues received in the 
Treasury from the tax imposed by 

section 5000E.
 ``
            (c) Expenditures From Trust Fund.--Amounts in the Housing Trust 
Fund shall be available, as provided in appropriations Acts, only for 
grants under 

section 3

    (b) of the American Neighborhoods Protection Act 
of 2025.''.

    (2) Clerical amendment.--The table of sections 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 Trust Fund.''.

    (b) Grants Program for Down Payment Assistance Programs.--

    (1) Establishment.--The Secretary of Housing and Urban 
 Development shall establish a program under which the Secretary 
 makes grants to State housing finance agencies to establish new 
 or supplement existing programs that provide down 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 transferred by a covered taxpayer (as defined in 
 

section 5000E

    (b) of the Internal Revenue Code of 1986, as added 
 by 

section 2).
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