A group of Democratic lawmakers recently introduced legislation that restricts large corporate investor tax breaks resulting in home purchases increasing local housing prices and rents.
U.S. Sens. Sherrod Brown (D-OH), chair of the Senate Banking, Housing, and Urban Affairs Committee, and Ron Wyden (D-OR), chair of the Senate Finance Committee, introduced the Stop Predatory Investing Act with U.S. Tina Smith (D-MN), Jeff Merkley (D-OR), Jack Reed (D-RI), John Fetterman (D-PA), Elizabeth Warren (D-MA) and Tammy Baldwin (D-WI)
“In too many communities in Ohio, big investors funded by Wall Street buy up homes that could have gone to first-time homebuyers, then jack up rent, neglect repairs, and threaten families with eviction,” Brown said. “Our bill will help prevent corporate landlords from driving up local housing prices, and put power back in the hands of working families, who need a safe, affordable place to live and raise their children.”
The legislation prohibits an investor who acquires 50 or more single-family rental homes from deducting interest or depreciation on those properties; incentivizes big investors to sell single-family rental homes back to homeowners or nonprofits in the community; supports affordable rental housing and the construction of new housing supply by allowing owners to continue to take deductions on properties that are financed using Low-Income Housing Tax Credits or that are newly constructed for rental; and protects renters who live in existing single-family rental housing by not disallowing deductions for single-family rental homes purchased before enactment.
“In Oregon and all across the country, typical Americans who just want affordable housing are getting outmuscled by Wall Street investors that are buying up homes and hiking up rents,” Wyden said. “America’s housing policy desperately needs a remodel, and by looking out for the interests of working people and the middle class, this bill represents a key part of the blueprints.”