U.S. Sen. Marco Rubio and U.S. Rep. María Elvira Salazar (R-FL) introduced legislation that seeks to better track foreign real estate buyers in large markets. It would also raise the withholding tax for foreign buyers in large markets while also increasing affordable housing opportunities with additional tax credits for low-income buyers.
Specifically, the Home Advantage for American Families Act would authorize the Treasury Department to issue reports for residential real estate transactions within the top fifteen Metropolitan Statistical Areas (MSAs) to identify the natural identities of foreign buyers. Further, it would increase the Foreign Investment in Real Property Act (FIRPTA) of 1980 withholding tax on residential real estate from 15 percent to 30 percent for both foreign corporations and foreign individuals.
“Miami’s housing prices are out of control, and something needs to be done to address rising prices and expand access to affordable housing,” Salazar, who represents Miami, said. “This bill alleviates our housing crisis by ensuring that Miami residents come first in the marketplace.”
Also, to expand opportunities for low-income buyers, the bill provides an additional 10 percent of base-funding set-aside of the Low-Income Housing Tax Credit (LITHC) for single family home construction within Qualified Census Tracts (QCTs). This would help states create more affordable housing opportunities that can accommodate a family.
“As billions of foreign dollars pour into Florida real estate, families in our communities are struggling to find affordable housing,” Rubio said. “To have a strong nation, we need strong communities. And to have strong communities, we must have strong families. Combating illicit finance in foreign real estate investment and increasing affordable housing investment in South Florida are key to tackling this problem confronting so many Floridians. This bill would do exactly that.”