Congressman Ro Khanna (District 17, Santa Clara) recently introduced the Stop Wall Street Landlords Act of 2022 to place restrictions on corporate landlords that are profiting from the purchase of single-family homes. These new restrictions would apply to large institutional investors that have at least $100 million in assets during a calendar year.
The bill responds to findings from a House Subcommittee, which released a report following a year-long investigation into corporate landlords and a rise in evictions during the pandemic. Specifically, the bill would:
- Prevent investors from claiming tax breaks, including mortgage interest deductions and depreciation
- Limit investors access to financing by preventing Freddie Mac, Fannie Mae, and Ginnie Mae from buying and securitizing mortgages taken out by investors
- Impose a new transfer tax on institutional investor acquisitions of single-family homes
According to the bill’s sponsors, investors purchased more than 25% of the nation’s homes last year, reducing opportunities for families to access homeownership and artificially driving up home prices in low-income neighborhoods.
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