,,ii  #aagth ,,congress  #b;d ,session  
,s4 #eaea  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,november #cj  
7legislative day1 ,november #bi71       
#bjbb,mr4 ,merkley introduced the       
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to prohibit individuals and 
entities from owning more than #ajj     
single-family residences1 and for other 
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,end ,hedge ,fund   
,control of ,american ,homes ,act4  #b4 
,excise tax on certain taxpayers failing
 to sell excess single-family residences
  7a7 ,in general ,subtitle ,d of the   
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new chapter3  #ej;,b ,excess  
single-family residences  ,sec4         
#ejjj;,e4 ,excess single-family         
residences4  #ejjj;,e4 ,excess          
single-family residences  7a7 ,in       
general ,in the case of any covered     
taxpayer who fails to meet the          

requirement of subsection 7b7 for any   
taxable year1 there is hereby imposed a 
tax equal to the product of-- 7#a7      
#bj1jjj1 and  7#b7 the excess of-- 7,a7 
the number of single-family residences  
owned by the taxpayer as of the last day
 of the taxable year1 over  7,b7 #ajj4  
7b7 ,requirement ,a covered taxpayer    
meets the requirements of this section  
for any taxable year if the number of   
single-family residences owned by the   
covered taxpayer as of the last day of  
the taxable year is equal to or less    
than #ij percent of the number of single
 family homes owned by the covered      
taxpayer as of the first day of the     
taxable year4  7c7 ,covered taxpayer    
,for purposes of this section-- 7#a7 ,in
 general ,the term covered taxpayer     
means1 with respect to any taxable year1
 any person who owns more than #ajj     
single-family residences1 as determined 
on the first day of the taxable year4   
7#b7 ,exclusions ,such term shall not   
include-- 7,a7 a mortgage note holder   

that owns a single-family residence     
through foreclosure1  7,b7 a            
organization which is described in      
section #eja7;c77#c7 and exempt from tax
 under section #eja7;a71  7,c7 any      
person primarily engaged in the         
construction or rehabilitation of       
single-family residences1 or  7,d7 any  
person who owns federally subsidized    
housing4  7#c7 ,aggregation rules  7,a7 
,in general ,for purposes of this       
section1 all persons which are treated  
as a single employer under subsections  
7a7 and 7b7 of section #eb shall be     
treated as a single taxpayer4  7,b7     
,modifications ,for purposes of this    
paragraph-- 7i7 section #eb7;a7 shall be
 applied by substituting component      
members for members1 and  7ii7 for      
purposes of applying section #eb7;b71   
the term trade or business shall include
 any activity treated as a trade or     
business under paragraph 7#e7 or 7#f7 of
 section #dfi7;c7 7determined without   
regard to the phrase ,to the extent     

provided in regulations in such         
paragraph 7#f774  7,c7 ,component member
 ,for purposes of this paragraph1 the   
term component member has the meaning   
given such term by section #aefc7;b71   
except that the determination shall be  
made without regard to section          
#aefc7;b77#b74  7d7 ,other rules and    
definitions ,for purposes of this       
section-- 7#a7 ,single-family residence 
,the term single-family residence means 
a residential property consisting of    
#a-to-#d dwelling units4  7#b7 ,own     
7,a7 ,in general ,the term own1 with    
respect to a single-family residence1   
means having a direct majority ownership
 interest in the single-family          
residence1 regardless of the percentage 
of that ownership interest4  7,b7       
,special rule for certain sales  7i7 ,in
 general ,notwithstanding subparagraph  
7,a71 for purposes of subsections       
7a77#b77;,a7 and 7b71 any single-family 
residence which is owned by a covered   
taxpayer as of the first day of the     

taxable year and which is sold or       
transferred during such taxable year by 
the covered taxpayer in a sale or       
transfer described in clause 7ii7 shall 
be treated as a single-family residence 
which is owned by the covered taxpayer  
as of the last day of such taxable year4
  7ii7 ,sales described ,a sale or      
transfer is described in this clause if 
such sale or transfer is a sale or      
transfer to-- 7,i7 a corporation or     
entity engaged in a trade or business1  
7,,ii7 a group of more than #b          
individuals1 or  7,,iii7 a person who   
owns any other single-family residence  
at the time of such sale4  7e7          
,reporting  7#a7 ,in general ,the       
,secretary shall require such reporting 
as the ,secretary determines necessary  
or appropriate to carry out the purposes
 of this section1 including reporting   
with respect to whether any person      
acquiring a single-family residence from
 a covered taxpayer owns any other      
single-family residences at the time of 

the acquisition4  7#b7 ,failure to      
report  7,a7 ,in general ,any person who
 fails to report information required   
under paragraph 7#a7 or who fails to    
include correct information in such     
report shall pay a penalty of #bj1jjj4  
7,b7 ,reasonable cause waiver ,no       
penalty shall be imposed under this     
paragraph with respect to any failure if
 it is shown that such failure is due to
 reasonable cause and not to willful    
neglect4  7,c7 ,treatment of penalty    
,the penalty under this paragraph shall 
be paid upon notice and demand by the   
,secretary1 and shall be assessed and   
collected in the same manner as an      
assessable penalty under subchapter ,b  
of chapter #fh4  4  7b7 ,certification  
7#a7 ,in general ,the reporting required
 under section #ejjj;,e7a7 of the       
,internal ,revenue ,code of #aihf1 as   
added by this section1 shall include a  
certification from each individual to   
whom a single-family residence is sold  
or transferred from a covered taxpayer4 

7#b7 ,form of certification ,the        
certification required under this       
subsection shall be signed by the       
purchaser or transferee and state the   
following3 7,a7 ,the name and address of
 the purchaser or transferee4  7,b7 ,the
 sale is not a sale described in section
 #ejjj;,e7d77#b77;,b77ii7 of the        
,internal ,revenue ,code of #aihf4  7,c7
 ,the purchaser or transferee will be   
subject to the penalty imposed under    
section #ejjj;,e7e77#b7 of such ,code   
for any false certification4  7#c7      
,definitions ,any term used in this     
subsection which is used in section     
#ejjj;,e of the ,internal ,revenue ,code
 of #aihf shall have the meaning give   
such term under such section4  7c7      
,clerical amendment ,the table of       
chapters for subtitle ,d of the         
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new item3  ,chapter           
#ej;,b--,excess single-,family          
residences  4  7d7 ,effective date ,the 

amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjbb4  #c4 ,use of tax  
revenues for down payment assistance    
grants  7a7 ,establishment of housing   
trust fund  7#a7 ,in general ,subchapter
 ,a of chapter #ih of the ,internal     
,revenue ,code of #aihf is amended by   
adding at the end the following new     
section3  #ieab4 ,housing ,trust ,fund  
7a7 ,creation of trust fund ,there is   
established in the ,treasury of the     
,united ,states a trust fund to be known
 as the ,housing ,trust ,fund           
7hereinafter in this section referred to
 as the ,trust ,fund71 consisting of    
such amounts as may be appropriated or  
credited to such ,trust ,fund as        
provided in this section and section    
#ifjb7;b74  7b7 ,transfers to ,trust    
,fund ,there are hereby appropriated to 
the ,housing ,trust ,fund amounts       
equivalent to revenues received in the  
,treasury from the tax imposed by       
section #ejjj;,e4  7c7 ,expenditures    

from ,trust ,fund ,amounts in the       
,housing ,trust ,fund shall be          
available1 as provided in appropriations
 ,acts1 only for grants under section   
#c7;b7 of the ,end ,hedge ,fund ,control
 of ,american ,homes ,act4  4  7#b7     
,clerical amendment ,the table of       
sections for subchapter ,a of chapter   
#ih of the ,internal ,revenue ,code of  
#aihf is amended by adding at the end   
the following new item3  7b7 ,grants    
program for down payment assistance     
programs  7#a7 ,establishment ,the      
,secretary of ,housing and ,urban       
,development shall establish a program  
under which the ,secretary makes grants 
to ,state housing finance agencies to   
establish new or supplement existing    
programs that provide down payment      
assistance to families purchasing homes 
within the ,state4  7#b7 ,priority ,a   
,state housing finance agency that      
receives a grant under this section     
shall give priority to families seeking 
assistance to purchase any single-family

 residence that is sold or transferred  
by a covered taxpayer 7as defined in    
section #ejjj;,e7c7 of the ,internal    
,revenue ,code of #aihf1 as added by    
section #b74