,,ii  #aahth ,,congress  #ast ,session  
,s4 #cdjb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,december #e1  
#bjbc,mr4 ,merkley 7for himself and ,ms4
 ,smith7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to impose an excise tax on the    
failure of certain hedge funds owning   
excess single-family residences to      
dispose of such 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 ,newly acquired single-family 
residences4 ,sec4 #ejjj;,f4 ,excess     
single-family residences4 ,sec4         

#ejjj;,g4 ,definitions and other special
 rules4  #ejjj;,e4 ,newly acquired      
single-family residences  7a7 ,in       
general ,in the case of an applicable   
taxpayer1 there is hereby imposed a tax 
on the acquisition of any newly acquired
 single-family residence equal to #ej   
percent of the fair market value of such
 residence4  7b7 ,newly acquired        
single-,family residence ,for purposes  
of this section1 the term newly acquired
 single-family residence means any      
single-family residence which was       
acquired by the taxpayer in any taxable 
year which begins after the date of the 
enactment of this chapter4  #ejjj;,f4   
,excess single-family residences  7a7   
,in general ,in the case of an          
applicable taxpayer who fails to meet   
the requirements of subsection 7b71     
there is hereby imposed a tax equal to  
the product of-- 7#a7 #ej1jjj1 and  7#b7
 the excess of-- 7,a7 the number of     
applicable single-family residences     
owned by the taxpayer as of the last day

 of the taxable year1 over  7,b7 the sum
 of-- 7i7 #ej 7zero in the case of any  
hedge fund taxpayer71 plus  7ii7 the    
maximum permissible units for the       
taxable year4  7b7 ,requirement  7#a7   
,in general ,an applicable taxpayer     
meets the requirement of this subsection
 for any taxable year if the number of  
applicable single-family residences     
owned by the taxpayer as of the last day
 of the taxable year is equal to or less
 than the maximum permissible units     
determined with respect to such taxpayer
 for such taxable year4  7#b7 ,special  
rule for certain sales ,for purposes of 
applying paragraph 7#a71 a single-family
 residence which is sold or transferred 
in a disqualified sale during the       
taxable year shall be treated as a      
single-family residence which is owned  
by the applicable taxpayer as of the    
last day of such taxable year4  7c7     
,maximum permissible units ,the maximum 
permissible units with respect to any   
applicable taxpayer for any taxable year

 shall be determined as follows3 ,in the
 case of--,the maximum permissible units
 for a hedge fund taxpayer is--,the     
maximum permissible units for any other 
applicable taxpayer is--the first full  
taxable year beginning after the        
applicable date 4 4 4#ij percent of the 
number of applicable single-family      
residences owned by the taxpayer on the 
applicable date#ej plus #ij percent of  
the number of applicable single-family  
residences owned by the taxpayer on the 
applicable datethe second taxable year  
beginning after the applicable date 4 4 
4#hj percent of the number of applicable
 single-family residences owned by the  
taxpayer on the applicable date#ej plus 
#hj percent of the number of applicable 
single-family residences owned by the   
taxpayer on the applicable date the     
third taxable year beginning after the  
applicable date 4 4 4#gj percent of the 
number of applicable single-family      
residences owned by the taxpayer on the 
applicable date#ej plus #gj percent of  

the number of applicable single-family  
residences owned by the taxpayer on the 
applicable datethe fourth taxable year  
beginning after the applicable date 4 4 
4#fj percent of the number of applicable
 single-family residences owned by the  
taxpayer on the applicable date#ej plus 
#fj percent of the number of applicable 
single-family residences owned by the   
taxpayer on the applicable date the     
fifth taxable year beginning after the  
applicable date 4 4 4#ej percent of the 
number of applicable single-family      
residences owned by the taxpayer on the 
applicable date#ej plus #ej percent of  
the number of applicable single-family  
residences owned by the taxpayer on the 
applicable datethe sixth taxable year   
beginning after the applicable date 4 4 
4#dj percent of the number of applicable
 single-family residences owned by the  
taxpayer on the applicable date#ej plus 
#dj percent of the number of applicable 
single-family residences owned by the   
taxpayer on the applicable datethe      

seventh taxable year beginning after the
 applicable date 4 4 4#cj percent of the
 number of applicable single-family     
residences owned by the taxpayer on the 
applicable date#ej plus #cj percent of  
the number of applicable single-family  
residences owned by the taxpayer on the 
applicable datethe eighth taxable year  
beginning after the applicable date 4 4 
4#bj percent of the number of applicable
 single-family residences owned by the  
taxpayer on the applicable date#ej plus 
#bj percent of the number of applicable 
single-family residences owned by the   
taxpayer on the applicable date the     
ninth taxable year beginning after the  
applicable date 4 4 4#aj percent of the 
number of applicable single-family      
residences owned by the taxpayer on the 
applicable date#ej plus #aj percent of  
the number of applicable single-family  
residences owned by the taxpayer on the 
applicable date any taxable year        
beginning more than #i years after the  
applicable date 4 4 4#j #ej4  7d7       

,definitions ,for purposes of this      
section-- 7#a7 ,applicable single-family
 residence ,the term applicable         
single-family residence means any       
single-family residence which was       
acquired on or before the applicable    
date4  7#b7 ,applicable date  7,a7 ,in  
general ,the term applicable date       
means-- 7i7 the last day of the first   
full taxable year ending on or after the
 date of the enactment of this chapter1 
or  7ii7 in the case of any taxpayer    
described in subparagraph 7,b71 the date
 provided in such subparagraph4  7,b7   
,taxpayers changing status  7i7 ,in     
general ,in the case of any applicable  
taxpayer described in clause 7ii71 the  
applicable date means the last day of   
the taxable year immediately preceding  
the taxable year in which the taxpayer  
is described in such clause4  7ii7      
,applicable taxpayer described ,an      
applicable taxpayer is described in this
 clause with respect to any taxable year
 if-- 7,i7 such taxpayer was not a hedge

 fund taxpayer for the preceding taxable
 year1 and  7,,ii7 such taxpayer is a   
hedge fund taxpayer for such taxable    
year4  7#c7 ,hedge fund taxpayer ,for   
purposes of this subsection1 the term   
hedge fund taxpayer means1 with respect 
to any taxable year1 any applicable     
taxpayer which has #ej1jjj1jjj or more  
in net value or assets under management 
on any day during the taxable year4     
#ejjj;,g4 ,definitions and other special
 rules  7a7 ,applicable taxpayer ,for   
purposes of this chapter-- 7#a7 ,in     
general ,the term applicable taxpayer   
means any applicable entity which-- 7,a7
 manages funds pooled from investors1   
and  7,b7 is a fiduciary with respect to
 such investors4  7#b7 ,applicable      
entity  7,a7 ,in general ,the term      
applicable entity means-- 7i7 any       
partnership1  7ii7 any corporation1 or  
7iii7 any real estate investment trust4 
7,b7 ,exceptions ,the term applicable   
entity shall not include-- 7i7 an       
organization which is described in      

section #eja7;c77#c7 and exempt from tax
 under section #eja7;a71 or  7ii7 an    
organization primarily engaged in the   
construction or rehabilitation of       
single-family residences4  7b7          
,single-,family residence ,for purposes 
of this chapter-- 7#a7 ,in general ,the 
term single-family residence means a    
residential property consisting of      
#a-to-#d dwelling units4  7#b7          
,exceptions ,such term shall not        
include-- 7,a7 any unoccupied           
single-family residence acquired through
 foreclosure1  7,b7 any single-family   
residence that is-- 7i7 not rented or   
leased1 and  7ii7 used as the principal 
residence 7within the meaning of section
 #aba7 of any person who has an         
ownership interest in the applicable    
taxpayer1 or  7,c7 any single-family    
residence constructed1 acquired1 or     
operated with ,federal appropriated     
funding sources4  7c7 ,acquisition2     
ownership ,for purposes of this chapter1
 an applicable taxpayer shall be        

treated-- 7#a7 as acquiring a           
single-family residence if the          
applicable taxpayer acquires a majority 
ownership interest in the single-family 
residence1 regardless of the percentage 
of that ownership interest1 and  7#b7 as
 owning a single-family residence if the
 applicable taxpayer owns a majority    
ownership interest in the single-family 
residence1 regardless of the percentage 
of that ownership interest4  7d7        
,disqualified sale ,for purposes of this
 chapter1 the term disqualified sale    
means any sale or transfer to-- 7#a7 a  
corporation or other entity engaged in a
 trade or business1 or  7#b7 an         
individual who owns any other           
single-family residence at the time of  
such sale or transfer4  7e7 ,aggregation
 rules  7#a7 ,in general ,for purposes  
of this chapter1 all persons which are  
treated as a single employer under      
subsections 7a7 and 7b7 of section #eb  
shall be treated as a single person4    
7#b7 ,modifications ,for purposes of    

this subsection-- 7,a7 section #eb7;a7  
shall be applied by substituting        
component members for members1 and  7,b7
 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  7f7 ,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--   
7,a7 the dates on which single-family   
residences owned by an applicable       
taxpayer were acquired by such taxpayer1

 and  7,b7 whether any person acquiring 
a single-family residence from an       
applicable 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 ,tax form ,not  
later than #ahj days after the date of  
the enactment of this ,act1 the         
,secretary of the ,treasury 7or the     

,secretary's delegate7 shall publish a  
form to be used for calculating the     
amount of tax owned under chapter #ej;,b
 of the ,internal ,revenue ,code of     
#aihf 7as added by subsection 7a774  7c7
 ,certification  7#a7 ,in general ,the  
reporting required under section        
#ejjj;,g7f77#a77;,b7 of the ,internal   
,revenue ,code of #aihf1 as added by    
subsection 7a71 shall include a         
certification from each individual to   
whom a single-family residence is sold  
or transferred from an applicable       
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 disqualified sale   
7as defined in section #ejjj;,g7d7 of   
the ,internal ,revenue ,code of #aihf1  
as added by this section74  7,c7 ,the   
purchaser or transferee will be subject 
to the penalty imposed under section    

#ejjj;,g7f77#b7 of such ,code for any   
false certification4  7#c7 ,definitions 
,any term used in this subsection which 
is used in chapter #ej;,b of the        
,internal ,revenue ,code of #aihf 7as   
added by this section7 shall have the   
meaning give such term under such       
chapter4  7d7 ,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  7e7 ,effective date ,the 
amendments made by this section shall   
apply to taxable years beginning after  
the date of enactment of this ,act4  #c4
 ,use of tax revenues for down payment  
assistance grants  7a7 ,establishment of
 housing downpayment 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 ,downpayment ,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 ,downpayment ,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 ,trust ,fund amounts
 equivalent to revenues received in the 
,treasury from the tax imposed by       
sections #ejjj;,e and #ejjj;,f4  7c7    
,expenditures from ,trust ,fund ,amounts
 in the ,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  ,sec4 #ieab4   
,housing ,downpayment ,trust ,fund4  4  
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 an applicable taxpayer 7as defined in
 section #ejjj;,g of the ,internal      
,revenue ,code of #aihf1 as added by    
section #b74