U.S. Reps. Ro Khanna (D-CA), Katie Porter (D-CA), and Mark Takano (D-CA) this week introduced legislation that targets institutional investors deploying rent gouging tactics.
The Stop Wall Street Landlords Act (H.R. 9246) addresses rent gouging by deterring future institutional investments in Single Family Residential (SFR) properties through a tax on existing and future SFR acquisitions.
“The financialization of the housing market by Wall Street exacerbates corporate profiteering and anti-competitive practices that makes it harder for Americans to afford housing or access homeownership,” Khanna, deputy Whip of the Progressive Caucus, said. “Low- and middle-income families in my district and across the country are being pushed out because of profiteering and unfair practices by large corporate landlords. This legislation will help level the playing field and put a stop to rent gouging in America.”
Per the legislation, the measure also prohibits Fannie Mae, Freddie Mac, and Gennie Mae from purchasing and securitizing mortgages held by large institutional investors using debt to buy single-family homes and rent them for optimal profit.
“When I was on the front lines of the foreclosure crisis, I saw firsthand how corporate special interests take advantage of families to line their pockets,” Porter said. “The Stop Wall Street Landlords Act promotes affordable homeownership so that our kids can live in the same communities they grew up in. I am proud to work with Reps. Khanna and Takano to hold Wall Street accountable.”