Home Advantage for American Families Act

II 116TH CONGRESS 2D SESSION S. 3495 To reduce the excessive appreciation of United States residential real estate due to foreign purchases. IN THE SENATE OF THE UNITED STATES MARCH 12, 2020 Mr. RUBIO introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To reduce the excessive appreciation of United States residential real estate due to foreign purchases. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Home Advantage for 4 American Families Act’’. 5 SEC. 2. EXPANSION OF TOOLS TO COMBAT MONEY LAUN- 6 DERING. 7 (a) IN GENERAL.—Subchapter II of chapter 53 of 8 title 31, United States Code, is amended by adding at the 9 end the following: 10 VerDate Sep 11 2014 19:16 Mar 24, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3495.IS S3495 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3495 IS ‘‘§ 5333. Reports on applicable residential property 1 ‘‘(a) DEFINITIONS.—In this section: 2 ‘‘(1) APPLICABLE RESIDENTIAL PROPERTY.— 3 The term ‘applicable residential property’ means 4 property described in section 1445(f) of the Internal 5 Revenue Code of 1986 and which is located in any 6 of the 15 largest metropolitan statistical areas by 7 population (as determined by the Office of Manage- 8 ment and Budget). 9 ‘‘(2) FOREIGN PERSON.—The term ‘foreign per- 10 son’ means any person that is not a citizen or per- 11 manent resident of the United States. 12 ‘‘(3) SALE OF APPLICABLE RESIDENTIAL PROP- 13 ERTY.—The term ‘sale of applicable residential prop- 14 erty’ means the sale of an interest in applicable resi- 15 dential property. 16 ‘‘(b) REPORTS.—Any foreign person involved in a 17 transaction related to the sale of applicable residential 18 property shall submit to the Secretary of the Treasury a 19 report with respect to the transaction or any related trans- 20 action that contains— 21 ‘‘(1) the name and any other identification in- 22 formation that the Secretary determines is necessary 23 of the individual purchasing the applicable residen- 24 tial property; 25 VerDate Sep 11 2014 19:16 Mar 24, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3495.IS S3495 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3495 IS ‘‘(2) the amount and source of the funds re- 1 ceived by the seller, as determined by the Secretary; 2 ‘‘(3) the date and nature of the transaction; 3 and 4 ‘‘(4) any other information, including the iden- 5 tification of the person filing the report, that the 6 Secretary determines is necessary. 7 ‘‘(c) REGULATIONS.—Not later than 180 days after 8 the date of enactment of this section, the Secretary shall 9 promulgate regulations carrying out this section.’’. 10 (b) TECHNICAL AND CONFORMING AMENDMENT.— 11 The table of sections for chapter 53 of title 31, United 12 States Code, is amended by adding at the end the fol- 13 lowing: 14 ‘‘5333. Reports on applicable residential property.’’. (c) LIST OF TOP 15 LARGEST METROPOLITAN STA- 15 TISTICAL AREAS.—Not less than every 5 years, the Direc- 16 tor of the Office of Management and Budget shall update 17 the list of the 15 largest metropolitan statistical areas by 18 population. 19 SEC. 3. INCREASED WITHHOLDING ON SALE DISPOSITION 20 OF CERTAIN UNITED STATES REAL PROP- 21 ERTY INTERESTS. 22 (a) IN GENERAL.—Section 1445 of the Internal Rev- 23 enue Code of 1986 is amended by redesignating subsection 24 VerDate Sep 11 2014 19:16 Mar 24, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3495.IS S3495 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3495 IS (f) as subsection (g) and by inserting after subsection (e) 1 the following new subsection: 2 ‘‘(f) SPECIAL RULE FOR CERTAIN DISPOSITIONS OF 3 RESIDENTIAL REAL PROPERTY.— 4 ‘‘(1) IN GENERAL.—In the case of the disposi- 5 tion of any applicable residential property, sub- 6 section (a) shall be applied by substituting ‘30 per- 7 cent’ for ‘15 percent’. 8 ‘‘(2) APPLICABLE RESIDENTIAL PROPERTY.— 9 For purposes of this subsection, the term ‘applicable 10 residential property’ means any interest which— 11 ‘‘(A) is an interest described in section 12 897(c)(1)(A)(i), and 13 ‘‘(B) is an interest in residential real prop- 14 erty.’’. 15 (b) EFFECTIVE DATE.—The amendments made by 16 subsection (a) shall apply to dispositions after the date 17 which is 60 days after the date of the enactment of this 18 Act. 19 SEC. 4. INCREASE IN LOW-INCOME HOUSING TAX CREDIT 20 STATE CEILING. 21 (a) IN GENERAL.—Section 42(h)(3)(C) of the Inter- 22 nal Revenue Code of 1986 is amended by striking ‘‘plus’’ 23 at the end of clause (iii), by striking the period at the 24 VerDate Sep 11 2014 19:16 Mar 24, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3495.IS S3495 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3495 IS end of clause (iv) and inserting ‘‘, plus’’, and by inserting 1 after clause (iv) the following: 2 ‘‘(v) the qualified single-family hous- 3 ing amount determined under subpara- 4 graph (J).’’. 5 (b) QUALIFIED SINGLE-FAMILY HOUSING 6 AMOUNT.— 7 (1) IN GENERAL.—Section 42(h)(3) of the In- 8 ternal Revenue Code of 1986 is amended by adding 9 at the end the following new subparagraph: 10 ‘‘(J) QUALIFIED SINGLE-FAMILY HOUSING 11 AMOUNT.—The qualified single-family housing 12 amount determined under this subparagraph 13 for any calendar year is an amount equal to the 14 sum of— 15 ‘‘(i) 10 percent of the amount deter- 16 mined under subparagraph (C)(ii) for such 17 calendar year (determined after application 18 of subparagraphs (H) and (I)), 19 ‘‘(ii) the excess (if any) of the amount 20 described in clause (i) for the preceding 21 calendar year over the amounts allocated 22 to projects described in paragraph (9) for 23 such preceding calendar year, 24 VerDate Sep 11 2014 19:16 Mar 24, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3495.IS S3495 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 3495 IS ‘‘(iii) the amount allocated within the 1 State (not in excess of the amount deter- 2 mined under this subparagraph for the 3 preceding calendar year reduced by the 4 amount described in clause (ii) for the sec- 5 ond preceding calendar year) for any 6 project— 7 ‘‘(I) which is described in para- 8 graph (9) and which fails to meet the 9 10 percent test under paragraph 10 (1)(E)(ii) on a date after the close of 11 the calendar year in which the alloca- 12 tion was made, 13 ‘‘(II) which does not become a 14 qualified low-income housing project 15 described in paragraph (9) within the 16 period required by this section or the 17 terms of the allocation, or 18 ‘‘(III) which is described in para- 19 graph (9) and with respect to which 20 an allocation is cancelled by mutual 21 consent of the housing credit agency 22 and the allocation recipient, plus 23 ‘‘(iv) the amount, if any, determined 24 under subparagraph (D), applied— 25 VerDate Sep 11 2014 19:16 Mar 24, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3495.IS S3495 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 3495 IS ‘‘(I) by substituting ‘unused 1 qualified single-family housing carry- 2 over’ for ‘unused housing credit carry- 3 over’ in clause (i) thereof, 4 ‘‘(II) without regard to clause (ii) 5 thereof, 6 ‘‘(III) by substituting ‘unused 7 qualified single-family housing 8 carryovers’ for ‘unused housing credit 9 carryovers’ in clause (iii) thereof, and 10 ‘‘(IV) by substituting ‘an amount 11 equal to its entire qualified single- 12 family housing amount to projects de- 13 scribed in paragraph (9)’ for ‘entire 14 State housing credit ceiling (deter- 15 mined without regard to amounts de- 16 scribed in subparagraph (C)(v))’ in 17 clause (iv)(I) thereof.’’. 18 (2) CONFORMING AMENDMENTS.— 19 (A) Section 42(h)(3)(C) of such Code is 20 amended by inserting ‘‘(other than amounts al- 21 located from the qualified single-family housing 22 amount)’’ after ‘‘the housing credit dollar 23 amount previously allocated within the State’’. 24 VerDate Sep 11 2014 19:16 Mar 24, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3495.IS S3495 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 3495 IS (B) Section 42(h)(3)(D) of such Code is 1 amended by inserting ‘‘(determined without re- 2 gard to amounts described in subparagraph 3 (C)(v))’’ after ‘‘entire State housing credit ceil- 4 ing’’. 5 (c) SET ASIDE OF INCREASED AMOUNTS.—Section 6 42(h) of the Internal Revenue Code of 1986 is amended 7 by adding at the end the following new paragraph: 8 ‘‘(9) SET ASIDE OF QUALIFIED SINGLE-FAMILY 9 HOUSING AMOUNT.—The portion of the State hous- 10 ing credit ceiling which is equal to the qualified sin- 11 gle-family housing amount for any calendar year 12 shall be allocated to projects consisting of 1 to 4 13 dwelling units that are located in qualified census 14 tracts (as defined in subsection (d)(5)(B)(i)).’’. 15 (d) EFFECTIVE DATE.—The amendments made by 16 this section shall apply to allocations made for calendar 17 years beginning after the date of the enactment of this 18 Act. 19 Æ VerDate Sep 11 2014 19:16 Mar 24, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\S3495.IS S3495 pamtmann on DSKBC07HB2PROD with BILLS