Legislation to Prevent Corporate and Foreign Ownership of Single-Family Homes (SFHs)
Purpose:
This legislation aims to preserve homeownership opportunities for American citizens, curb speculative practices, and protect communities from large-scale corporate and foreign acquisitions of single-family homes (SFHs). By restricting the ownership of SFHs by corporations and foreign entities, the law will support affordable housing, reduce home price inflation driven by outside investment, and safeguard the American Dream of homeownership.
Section 1: Definitions
- Single-Family Home (SFH): A residential property designed for occupancy by one family unit. This includes detached homes, townhouses, and attached homes intended for residential use.
- Corporate Entity: Any corporation, partnership, limited liability company (LLC), or business entity that holds an interest in real estate, regardless of whether it is incorporated in the U.S. or abroad.
- Foreign Entity: Any individual, corporation, or organization that is not a legal resident or citizen of the United States, including foreign governments, state-owned enterprises, or international organizations.
- U.S. Citizen or Legal Resident: A person who is a natural-born citizen, a naturalized citizen, or a legal permanent resident (Green Card holder) of the United States.
- Affordable Housing Area: A designated geographic area where affordable housing is in high demand due to income levels and housing shortages. Local governments define these areas.
- Homebuyer: A legal U.S. citizen or permanent resident seeking to purchase a single-family home for personal use as their primary residence.
Section 2: Restrictions on Corporate and Foreign Ownership of SFHs
- Prohibited Ownership:
- Corporate Entities: No corporate entity shall own more than 5% of the single-family homes in any municipality, county, or metropolitan area. This applies to entities that buy or control residential properties for the purpose of investment, rental, or resale.
- Foreign Entities: Foreign individuals or corporations may not own any single-family homes in the U.S., except as allowed for personal residences or business-related purposes (with specific exemptions for foreign nationals with legal U.S. residency).
- Foreign Investment Cap:
- No foreign individual or entity shall own more than 1% of single-family homes in any U.S. state or 0.5% in any county or metropolitan area. Foreign nationals must be legal permanent residents or U.S. citizens to qualify for homeownership under normal conditions.
- Exemption for Personal Use:
- Foreign nationals who are legal permanent residents (Green Card holders) or those with U.S. citizenship may purchase SFHs for personal use as a primary residence, but not as an investment property.
- No corporate entity, foreign entity, or individual can own more than one single-family home for personal use.
Section 3: Registration, Disclosure, and Reporting Requirements
- Mandatory Property Ownership Registration:
- All purchasers of single-family homes (SFHs) must register their ownership with the Department of Housing and Urban Development (HUD) within 30 days of purchase.
- Corporate and foreign entities must disclose the names of the legal owners, the intended use of the property (whether for rental, resale, etc.), and any legal documentation relating to the ownership structure.
- Annual Ownership Reporting:
- All entities (corporate or foreign) must submit an annual report to HUD, detailing the number of SFHs owned, the type of property (residential or investment), and any major sales or acquisitions of properties.
- A publicly accessible ownership transparency registry will be established by HUD, which will make the information available to U.S. citizens, municipalities, and other stakeholders.
- Monitoring and Auditing:
- HUD will regularly monitor corporate and foreign ownership data, ensuring compliance with the legislation’s restrictions.
- Local governments will also be required to track corporate and foreign ownership and share this data with federal authorities to prevent concentration of properties in specific areas.
Section 4: Penalties for Non-Compliance
- Excessive Ownership:
- Any corporate or foreign entity found to own more than the permitted percentage of SFHs will be required to divest (sell) the excess properties within 90 days of notice, at market value.
- Entities failing to comply with divestment orders will face fines of up to $50,000 per property and may be subject to further legal action.
- Failure to Register or Report:
- Any corporate or foreign entity that fails to register or report their ownership of SFHs will face penalties of $25,000 for the first offense and up to $100,000 for repeated offenses.
- Entities found to be making false statements or providing incomplete information in their registration or reporting will face additional penalties, including property forfeiture to local governments.
- Vacant Property Penalties:
- Corporate or foreign owners who leave SFHs vacant for more than 6 months will be subject to a vacancy tax of 10% of the property value for each year the home remains unoccupied.
- If the property remains vacant for more than one year, it will be subject to forced sale by local authorities to qualified U.S. citizens or local entities.
Section 5: Exceptions and Exemptions
- Exemptions for Non-Profit and Public Housing Organizations:
- Non-profit organizations, local governments, and state-authorized affordable housing entities are exempt from ownership restrictions, provided they acquire properties to be used for affordable housing or community development projects.
- Owner-Occupied Exemption:
- Individuals who own single-family homes for personal, owner-occupied use are exempt from corporate and foreign ownership restrictions, provided that the individual occupies the property as their primary residence.
- Real Estate Investment Trusts (REITs):
- REITs that own single-family homes will be allowed to operate in compliance with the law, but they must disclose to HUD the properties they own and the number of units available for long-term rental or homeownership for U.S. citizens. REITs must be restricted to owning a maximum of 5% of all homes in any state.
- Legal Residency for Foreign Nationals:
- Foreign nationals who have been legal permanent residents (Green Card holders) for at least 5 years may purchase one single-family home for personal use, but such purchases will be subject to increased scrutiny and approval by HUD.
Section 6: Local Government Empowerment
- Local Zoning and Regulatory Support:
- Local municipalities are empowered to set lower caps on corporate and foreign ownership of SFHs within their jurisdictions, should they wish to do so in areas with especially high demand for housing.
- Cities and counties may implement rent control measures to ensure that homes purchased by corporate or foreign entities are rented at fair market rates for local citizens.
- Community Land Trusts and Cooperative Housing:
- The legislation will support the creation of Community Land Trusts (CLTs) and cooperative housing models, enabling local communities to collectively manage land and ensure long-term housing affordability. Corporations and foreign entities will be limited in purchasing land that is managed through these models.
Section 7: Enforcement and Compliance Mechanisms
- Creation of a National Housing Oversight Bureau:
- The National Housing Oversight Bureau (NHOB) will be created to enforce this legislation, investigate compliance, and take action against violations.
- NHOB will coordinate with state housing agencies, HUD, and local municipalities to track corporate and foreign ownership and ensure adherence to the rules set forth.
- Legal Action and Community Advocacy:
- Local community organizations will have the right to file complaints with NHOB if they believe that corporate or foreign ownership is violating local laws or causing harm to the housing market.
- Whistleblower protection will be granted to individuals who report fraudulent activity related to ownership registrations.
Section 8: Review and Adjustment
- Periodic Review of Ownership Limits:
- Every 3 years, Congress will review the effectiveness of this legislation, based on the housing market, affordability metrics, and community impact, adjusting ownership limits or introducing additional regulations as needed.
- Impact Assessment:
- An independent commission will assess the impact of this legislation on housing affordability, the housing market, and homeownership rates among U.S. citizens, ensuring that the law is meeting its objectives.
Section 9: Effective Date
- This legislation will become effective within 180 days of passing. Corporate and foreign entities will be given this period to comply with the ownership registration requirements and begin divesting properties as necessary.
Conclusion
This Legislation to Prevent Corporate and Foreign Ownership of Single-Family Homes seeks to curb speculative and disruptive practices by corporations and foreign entities in the U.S. housing market, ensuring that homeownership remains accessible for U.S. citizens. By enacting clear restrictions, increasing transparency, and empowering local governments, this policy will help preserve the American Dream of homeownership, protect local communities, and make housing more affordable for future generations.
This proposal seeks to restrict the acquisition of single-family homes (SFHs) by large corporations, foreign entities, and speculative investors, ensuring that American families have priority access to homeownership. The initiative addresses the detrimental effects of corporate ownership on housing affordability, availability, and community stability.
Key Components
- Ownership Limits:
- Cap the percentage of single-family homes any corporation or foreign entity can own in a given market, with strict limits in high-demand areas to preserve housing stock for individual buyers.
- Foreign Ownership Restrictions:
- Prohibit foreign entities from purchasing SFHs for investment purposes, allowing ownership only if the home serves as a primary residence.
- Establish a transparent registry disclosing foreign and corporate ownership in residential markets.
- Speculation and Vacancy Taxes:
- Impose taxes on properties left vacant by corporate owners and on rapid speculation-driven acquisitions, discouraging practices that contribute to housing shortages and price inflation.
- Incentives for Individual Homeownership:
- Expand financial support for American families, including first-time homebuyer grants, tax deductions, down payment assistance, and low-interest financing, empowering individual buyers to compete in the housing market.
- Support for Community-Based Ownership Models:
- Promote community land trusts (CLTs) and cooperative housing models, enabling nonprofits and local governments to acquire properties for long-term affordability.
- Enforcement Mechanisms:
- Institute penalties for non-compliance, requiring excessive corporate holdings to be divested and prioritizing sales to individual homebuyers.
- Provide federal funding to local governments for housing oversight and policy enforcement.
- Education and Transparency Initiatives:
- Launch public awareness campaigns on the effects of corporate ownership on local housing markets, educating potential buyers on financing and homeownership to create a more informed citizenry.
Expected Impact
This legislation will curb the influence of corporations and foreign investors on the single-family home market, improve housing affordability, and stabilize neighborhoods. By prioritizing individual ownership, incentivizing local community housing initiatives, and increasing transparency, the National Single-Family Home Ownership Protection Act aims to secure affordable homeownership for American families, restore competitive balance in the market, and maintain the integrity of American communities.
Executive Plan for Returning Single-Family Homes to State Control
This executive plan outlines a structured approach for reclaiming single-family homes (SFHs) currently held by large corporations and foreign entities, aiming to transition these properties to state stewardship. Through this approach, states will have greater control over the housing market, with a focus on maintaining affordability, fostering community stability, and ensuring accessible homeownership for local residents.
Objective
To transfer ownership of single-family homes from large corporations, foreign entities, and speculative investors back to state oversight, where they can be managed to benefit local communities and individual buyers, not corporate profit models.
Key Components
1. Establishment of a State-Owned Housing Trust (SOHT)
- Create a State Housing Trust in Each State: The trust will be tasked with acquiring SFHs from corporate and foreign ownership, with the mandate of ensuring affordable access to housing for residents.
- State Housing Trust Management Teams: Establish state-level teams responsible for managing, rehabilitating, and maintaining these properties. Teams will include experts in property management, real estate finance, and affordable housing development.
2. Acquisition Process for Single-Family Homes
- Targeted Buyback Programs: Implement state-funded buyback initiatives focused on high-density areas with significant corporate-owned SFHs. States can offer competitive buyback rates to corporations that voluntarily sell their properties.
- Incentivized Divestment: Create incentives such as tax breaks for corporations that divest their SFH holdings to state entities within a specified timeframe.
- Mandatory Divestment Policies: In areas with housing shortages, states may enforce mandatory divestment policies requiring corporations and foreign entities to sell SFHs to the state or individual buyers.
3. Financing and Funding Strategies
- State and Federal Funding Partnerships: Secure federal grants and loan programs to support state buyback efforts, helping finance large-scale acquisition.
- Community Reinvestment Fund: Use a portion of the Community Development Block Grant (CDBG) and Low-Income Housing Tax Credit (LIHTC) funds to support state purchases of SFHs for affordable housing purposes.
- Public Bonds and Private Donations: Issue housing bonds specifically to fund the state’s acquisition of corporate-owned SFHs, appealing to private donors and housing-focused nonprofits for support.
4. Transfer Programs for Individual Buyers
- Affordable Ownership Programs: Once under state control, SFHs can be transferred to individuals through low-cost homeownership programs. Target demographics include first-time homebuyers, low-income families, and essential community workers.
- Lease-to-Own Options: Implement lease-to-own programs that allow renters to gradually build equity in the property and eventually assume ownership.
- Shared Equity Models: Enable residents to purchase SFHs with shared equity, where the state retains a portion of ownership to keep the homes permanently affordable.
5. Housing Stability Safeguards
- Anti-Flipping Restrictions: Enforce anti-flipping policies on state-acquired SFHs, preventing resale for profit and requiring a multi-year ownership commitment from new buyers.
- Right of First Refusal: Grant states the right of first refusal on any SFHs listed for sale by corporate or foreign owners, enabling timely acquisition and preventing speculative market re-entry.
- Resident Ownership Priority: Provide state residents with exclusive access to state-acquired SFHs for an initial period (e.g., six months), with preference given to community members who demonstrate ties to the area.
6. Long-Term Management and Community Stewardship
- Community Land Trusts (CLTs): Place state-acquired SFHs into community land trusts, ensuring long-term affordability and protection from speculative reinvestment.
- Nonprofit and Local Government Partnerships: Collaborate with local nonprofits and municipalities to manage state-owned SFHs, with a focus on community-driven development and long-term occupancy solutions.
- Tenant-to-Owner Transition Programs: Offer transition assistance for tenants in corporate-owned rentals who wish to purchase their homes, supporting stable and permanent homeownership.
7. Oversight and Accountability Measures
- Publicly Accessible Ownership Registry: Develop a transparent registry listing state-acquired SFHs and tracking the transition of these properties to individual ownership.
- Biennial Review of State-Owned SFHs: Conduct regular assessments of the success and challenges in the state’s SFH acquisition program, refining policies and ensuring alignment with local housing needs.
- Community Input Boards: Establish boards comprising local residents, housing experts, and community leaders to oversee state actions, ensuring transparency and community responsiveness.
8. Public Awareness and Education
- Public Awareness Campaigns: Educate citizens on the importance of SFH state acquisition, the role of the housing trust, and available pathways to affordable homeownership through state programs.
- Financial Literacy and Homeownership Workshops: Offer workshops and resources on homeownership, financing, and property maintenance to equip new homeowners with the knowledge needed for success.
Implementation Timeline
Phase 1: Legislation and Funding (0-12 months)
- Pass state-level legislation to establish SOHTs, secure funding, and set ownership restrictions.
- Form partnerships with federal agencies to align funding and tax incentives.
Phase 2: Acquisition and Management (12-36 months)
- Begin acquisition of SFHs from corporate and foreign owners, prioritizing areas with housing shortages.
- Launch management and tenant transition programs.
Phase 3: Community Transition and Stewardship (36-60 months)
- Transfer properties to individual buyers through affordable ownership programs.
- Establish long-term community oversight and support programs for sustainable homeownership.
Expected Outcomes
- Increased Access to Affordable Housing: By reclaiming single-family homes, states will increase the supply of affordable housing and make homeownership accessible to a wider population.
- Community Stability: Transitioning SFHs to local ownership will reduce the prevalence of absentee landlords and contribute to more stable, engaged communities.
- Reduction in Corporate Speculation: These policies will discourage speculative investments in single-family housing, helping stabilize the market and prevent artificial inflation of home prices.
- Economic Empowerment: Providing affordable pathways to homeownership strengthens financial stability for families and contributes to a robust middle class.
Conclusion
This executive plan presents a structured approach for states to reclaim single-family homes from corporate, foreign, and speculative owners, using targeted acquisition, incentives, and public-private partnerships. By emphasizing affordability, community stewardship, and ownership opportunities for residents, this initiative aims to return the American housing market to its original purpose: providing stable, affordable homes for families and contributing to the well-being of communities across the United States.
