Prohibition on Corporate Ownership of Single-Family Homes

[Daniel_Victores]

This policy aims to prevent large corporations from acquiring and owning single-family homes, ensuring that individual homebuyers, particularly American families, do not face undue competition from businesses in the housing market. At the same time, the policy seeks to support small business owners who may operate from their homes by allowing certain tax benefits.

Scope

This policy applies to all companies, corporations, LLCs, and other legal business entities operating within the jurisdiction. It applies specifically to the ownership and acquisition of single-family homes.

Policy Provisions

1. Restriction on Corporate Ownership

No company, corporation, LLC, or business entity may own a single-family home unless the majority owner or a designated representative of the company resides in that home as their primary residence.

2. Exemption for Owner-Occupied Homes

Companies whose owners or executives reside in the property as their primary residence are exempt from this restriction. This exemption is intended to support small business owners who may operate their businesses from their homes while benefiting from applicable tax reductions.

3. Definition of a Single-Family Home

For the purposes of this policy, a single-family home is defined as a detached residential structure that is designed to house one family unit. Duplexes, townhouses, and multi-unit residential buildings do not fall under this policy.

4. Prohibition on Shell Companies

The use of shell companies, holding companies, or other indirect ownership structures to circumvent this policy is expressly prohibited. Any business found to be using such mechanisms to acquire single-family homes will face penalties.

Enforcement and Penalties

1. Monitoring and Compliance

Ownership of single-family homes by companies will be monitored through property records and other publicly available information. Any violations will be investigated by the appropriate housing or business regulation authority.

2. Penalties for Non-Compliance

Companies found in violation of this policy will be required to divest the property within a set time frame (e.g., 6 months). Additionally, fines and penalties, determined based on the value of the property and the duration of non-compliance, will be imposed.

3. Grace Period

Existing corporate-owned single-family homes will have a grace period of 12 months to come into compliance by either divesting the property or converting it into an owner-occupied residence.

Effective Date

This policy will take effect on [Insert Date], following which no new corporate acquisitions of single-family homes will be permitted unless they meet the criteria for exemption.

Conclusion

This policy is designed to prioritize individual homeownership for American families while still allowing for reasonable business operations from a residence. By limiting corporate ownership of single-family homes, we aim to promote fair competition in the housing market and ensure access to affordable housing.

[Tony_Bradley]

What about companies that build houses or buy houses to fix them up? There are houses that are falling apart and people buy them to fix them and then resell them. If the person building or fixing doesn’t use a company to hold the title, then it becomes too risky and people wouldn’t build or fix houses. There would have to be some way to avoid liability for the builder or fixer, because otherwise the risk would be too great for anyone to build or fix houses.

[Daniel_Victores]

People who flip houses usually live in them until it’s flipped. Either way this is a basic concept ofc there will be exceptions and ways to prevent this from causing harm to the economy. This is basically for huge companies that buy up lots of houses off the market at over 10% the value in order to just rent it long term. This policy would be in order to prevent a future where average Americans can only rent instead of buy

[Formidable]

Implement it this way, by eliminating tax and financing advantages to corpotate buyers:

Eliminate Tax Breaks for Corporate Owned Single Family Homes

Prospective single family home buyers should not have to compete in the single family home market against corporations who have financing and tax advantages. Corporate homeowners can amortize improvements and individual homeowners cannot. Corporate homeowners have access to lower cost financing and can self insure, and deduct all related expenses. Corporate homeowners can deduct buyer commissions from their basis using corporate accounting methods. Corporate homeowners can offset capital gains b…

[Blkbtty007]

I think it is important to not discourage companies building housing. No restrictions on new builds that the company develops themselves.