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