Title: The Families First Homeownership Act
Section 1: Purpose and Findings
The purpose of this Act is to ensure that American families have fair and prioritized access to residential properties by temporarily restricting investor purchases, allowing families more time to secure financing and complete the home buying process.
We The People find that:
-
Increasing housing costs and inflation have made homeownership unattainable for many American families.
-
The rapid purchase of residential properties by investors for rental or resale purposes contributes to rising housing prices and reduces available housing inventory for families.
-
A temporary moratorium on investor purchases is necessary to level the playing field and allow families a fair opportunity to secure homeownership.
Section 2: Definitions
-
Investor: Any individual, entity, or corporation purchasing residential property for purposes other than primary residence, including purchases for rental, resale (flipping), or investment portfolio purposes.
-
Residential Property: Any single-family home, condominium, townhouse, or multi-family property of up to four units.
-
American Family: A U.S. citizen or lawful resident seeking to purchase a residential property as their primary residence.
Section 3: 90-Day Moratorium on Investor Purchases on all newly listed residential properties.
-
Moratorium Period: Following the enactment of this Act, investors shall be prohibited from making offers on or purchasing residential properties for 90 days once they are listed for sale.
-
Family-Only Bidding Window: During the moratorium period, only individual buyers seeking to purchase a primary residence may submit offers and purchase residential properties.
-
Investor Purchase: After the 90 day Family-Only Bidding window has expired on the residential property. All investors are eligible to place offers and purchase.
Section 4: Financing and Support for Family Buyers
-
Extended Offer Period: Home sellers shall allow a minimum offer consideration period of 30 days for primary residence buyers, ensuring they have adequate time to complete financing and secure their offer.
-
Federal Home Loan Assistance: Qualified family buyers may access federal assistance through existing programs (e.g., FHA, USDA, VA loans) for down payment support, mortgage rate reductions, and closing cost assistance.
Section 5: Enforcement and Penalties
-
Verification of Intent: Buyers must certify their intent to occupy the purchased property as a primary residence for a minimum of one year. False certifications will result in fines and potential forfeiture of the property.
-
Penalties for Investors: Any investor found attempting to bypass this moratorium, either through third-party proxies or misrepresentation, shall face fines and disqualification from purchasing additional residential properties for a period of two years.
Section 6: Reporting and Transparency
-
Reporting of Transactions: Title companies and real estate agents must report transactions during the moratorium period to ensure compliance with this Act.
-
Public Database: A publicly accessible database will track the number of homes purchased by family buyers and investors to provide transparency and gauge the impact of this Act.
Section 7: Review and Extension
-
Review at Conclusion of Moratorium: Congress shall conduct a review yearly to assess the Act’s impact on family home purchases and overall housing availability.
-
Optional Extension: If housing access challenges persist for family buyers, Congress may vote to extend/amend the moratorium for 120 day period.
Section 8: Effective Date
This Act shall take effect immediately upon passage.