Foundational Plan to Restrict BlackRock, Foreign Entities, and Corporations from Acquiring Single-Family Homes for Rental Purposes
This foundational plan outlines legislative, regulatory, and economic actions to prevent large corporate entities like BlackRock, foreign entities, and banks from purchasing single-family homes (SFHs) solely for the purpose of renting them to American citizens. The objective is to make homeownership more accessible to U.S. families, protect housing affordability, and prevent speculative ownership that inflates property prices and reduces homeownership opportunities.
1. Legislative Actions
A. Ownership Cap Legislation
- National Ownership Cap: Limit the number of single-family homes any corporation, REIT, or bank can own to 3% of homes in any given market, ensuring that single-family homes are primarily available for ownership by individuals and families.
- Market-Specific Caps: Impose lower ownership limits in high-demand markets (urban areas and areas with affordable housing shortages) where corporate purchases are most disruptive.
B. Restriction on Foreign Ownership
- Ban on Foreign-Owned Investment: Prohibit direct foreign ownership of SFHs for investment purposes. Foreign entities can own SFHs only if the property serves as a primary residence for the owner.
- Transparency and Disclosure Requirements: Foreign-owned corporations or individuals with permanent residency seeking to own SFHs must disclose full ownership information to U.S. regulatory authorities, establishing a transparent record of foreign-owned residential properties.
C. Anti-Speculation Tax on Corporate-Owned Residential Properties
- Speculation Tax: Impose a tax of 10-75% on the assessed value of homes that corporations hold for less than two years without a plan to sell to individual buyers.
- Vacancy Tax: Institute a vacancy tax of 15% on properties held by corporate or foreign entities that remain unoccupied for more than six months, which encourages owners to sell to potential homeowners rather than retain vacant properties. Redistribute Vacant or abandoned properties to Americans
D. Limits on Property Purchases by REITs and Large Investment Firms
- Restricted Purchase Programs: Limit the purchase of single-family homes by REITs, hedge funds, and large investment firms (like BlackRock) to properties zoned specifically for rental communities or multi-family use.
- State and Local Exemptions for Community Housing Initiatives: Allow state and local governments to exempt community-focused nonprofit housing initiatives that purchase homes for low-income and workforce housing.
2. Regulatory Framework
A. Federal Housing Oversight Office (FHO)
- Creation of FHO: Establish a Federal Housing Oversight Office under HUD to monitor corporate acquisitions of single-family homes, ensuring compliance with new ownership caps and reporting requirements.
- Mandatory Corporate Ownership Reporting: Corporations, banks, and foreign entities owning SFHs must submit quarterly ownership reports to FHO detailing the properties owned, usage status, and intent (rental or sale).
B. Real Estate Transparency Initiative
- National Registry of Corporate-Owned Homes: Establish a publicly accessible registry of single-family homes owned by corporate entities and foreign nationals. This registry will include the number of homes owned, usage data, and acquisition costs.
- Disclosure of Corporate Ownership in Housing Markets: Require real estate transactions involving corporate or foreign entities to include a clear disclosure of the buyer’s identity as a corporate or foreign entity, helping communities track ownership patterns.
3. Incentives for Individual Homeownership
A. Tax Benefits for First-Time and Family Homebuyers
- First-Time Homebuyer Grants and Tax Credits: Provide substantial tax incentives and grants for first-time homebuyers to make ownership more accessible to Americans rather than incentivizing corporate rental models.
- Mortgage Interest Deductions: Expand mortgage interest deductions or tax benefits for first-time homebuyers and families purchasing single-family homes.
B. Low-Interest Financing Programs
- Supportive Financing Options for Individuals: Create federally backed financing programs with low interest rates aimed at middle-income and low-income Americans, helping families compete with corporations that can buy properties in cash.
- Down Payment Assistance: Expand down payment assistance programs to support low-income and first-time buyers, including government-matching savings accounts for future homeowners.
C. Community Land Trusts and Cooperative Housing Support
- Land Trust Initiatives: Support the development of Community Land Trusts (CLTs), which allow local nonprofits or municipalities to acquire properties to ensure long-term affordability and restrict ownership by corporations.
- Financial Support for Cooperative Housing Models: Provide federal funding and state tax incentives to cooperative housing models that promote community ownership and restrict corporate or absentee landlord acquisition.
4. Enforcement Mechanisms
A. Penalties for Non-Compliance
- Fines for Excessive Ownership: Enforce a fine system on corporations or foreign entities that exceed the permitted ownership caps. Excessive ownership will result in fines up to 15% of the property’s assessed value.
- Divestment Requirements: Corporations, foreign entities, or banks found in violation of ownership restrictions will be mandated to divest properties within 12 months, prioritizing sales to individual buyers or community land trusts.
B. Incentives for Local Government Compliance
- Funding for Local Housing Oversight: Provide federal grants to municipalities and states that adopt and enforce local restrictions on corporate and foreign ownership, supporting their efforts to keep SFHs available to local families.
- Community Impact Review Panels: Establish local advisory panels to assess corporate ownership’s impact on housing affordability and advise on policy adjustments needed to maintain fair market practices.
5. Education and Public Awareness Initiatives
A. Public Awareness Campaign on Corporate Ownership
- Educational Campaign: Launch a public campaign to inform citizens about the risks and consequences of corporate ownership in the single-family housing market, including increased rents, reduced homeownership opportunities, and community impact.
- Transparency in Rental Agreements: Require property management companies affiliated with large corporations to disclose ownership details in rental agreements, helping tenants understand the broader ownership landscape.
B. Training and Resources for First-Time Homebuyers
- Homebuyer Education Programs: Fund community-based workshops and online resources that empower first-time buyers with knowledge on financing, homebuying processes, and competitive bidding strategies to level the playing field with corporate investors.
- Partnership with Nonprofit Organizations: Collaborate with nonprofits that provide financial literacy and homeownership training, ensuring buyers can navigate the market effectively.
6. Periodic Review and Policy Adjustments
A. Biennial Review of Corporate and Foreign Ownership Caps
- Impact Assessment on Housing Market: Every two years, a panel will review the impact of corporate and foreign ownership restrictions on housing affordability, availability, and community well-being.
- Adjust Ownership Caps as Needed: If necessary, adjust ownership caps based on economic conditions, ensuring that restrictions align with housing market realities and continue to benefit individual homeownership.
B. Inflation Adjustment on Speculation and Vacancy Taxes
- Annual Adjustment of Penalties: Increase speculation and vacancy tax rates annually based on inflation and real estate trends to discourage corporations from holding onto empty or speculative properties.
Conclusion
This National Single-Family Home Ownership Protection Act is aimed at reducing the concentration of SFHs in the hands of corporations, foreign entities, and speculative investors to ensure American families have affordable, accessible paths to homeownership. By implementing restrictions, increasing transparency, providing incentives for individual buyers, and encouraging community-based ownership models, this plan will foster a more stable housing market focused on the well-being of American families rather than corporate profits.
