Home Advantage for American Families Act

I 118TH CONGRESS 1ST SESSION H. R. 3533 To reduce the excessive appreciation of United States residential real estate due to foreign purchases. IN THE HOUSE OF REPRESENTATIVES MAY 18, 2023 Ms. SALAZAR introduced the following bill; which was referred to the Com- mittee on Ways and Means, and in addition to the Committee on Finan- cial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the juris- diction of the committee concerned 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 VerDate Sep 11 2014 23:23 Jun 12, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3533.IH H3533 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 3533 IH SEC. 2. EXPANSION OF TOOLS TO COMBAT MONEY LAUN- 1 DERING. 2 (a) IN GENERAL.—Subchapter II of chapter 53 of 3 title 31, United States Code, is amended by adding at the 4 end the following: 5 ‘‘§ 5337. Reports on applicable residential property 6 ‘‘(a) DEFINITIONS.—In this section: 7 ‘‘(1) APPLICABLE RESIDENTIAL PROPERTY.— 8 The term ‘applicable residential property’ means 9 property described in section 1445(f) of the Internal 10 Revenue Code of 1986 and which is located in any 11 of the 15 largest metropolitan statistical areas by 12 population (as determined by the Office of Manage- 13 ment and Budget). 14 ‘‘(2) FOREIGN PERSON.—The term ‘foreign per- 15 son’ means any person that is not a citizen or per- 16 manent resident of the United States. 17 ‘‘(3) SALE OF APPLICABLE RESIDENTIAL PROP- 18 ERTY.—The term ‘sale of applicable residential prop- 19 erty’ means the sale of an interest in applicable resi- 20 dential property. 21 ‘‘(b) REPORTS.—Any foreign person involved in a 22 transaction related to the sale of applicable residential 23 property shall submit to the Secretary of the Treasury a 24 report with respect to the transaction or any related trans- 25 action that contains— 26 VerDate Sep 11 2014 23:23 Jun 12, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3533.IH H3533 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 3533 IH ‘‘(1) the name and any other identification in- 1 formation that the Secretary determines is necessary 2 of the individual purchasing the applicable residen- 3 tial property; 4 ‘‘(2) the amount and source of the funds re- 5 ceived by the seller, as determined by the Secretary; 6 ‘‘(3) the date and nature of the transaction; 7 and 8 ‘‘(4) any other information, including the iden- 9 tification of the person filing the report, that the 10 Secretary determines is necessary. 11 ‘‘(c) REGULATIONS.—Not later than 180 days after 12 the date of enactment of this section, the Secretary shall 13 promulgate regulations carrying out this section.’’. 14 (b) TECHNICAL AND CONFORMING AMENDMENT.— 15 The table of sections for chapter 53 of title 31, United 16 States Code, is amended by adding at the end the fol- 17 lowing: 18 ‘‘5337. Reports on applicable residential property.’’. (c) LIST OF TOP 15 LARGEST METROPOLITAN STA- 19 TISTICAL AREAS.—Not less frequently than every 5 years, 20 the Director of the Office of Management and Budget 21 shall update the list of the 15 largest metropolitan statis- 22 tical areas by population. 23 VerDate Sep 11 2014 23:23 Jun 12, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3533.IH H3533 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 3533 IH SEC. 3. INCREASED WITHHOLDING ON SALE DISPOSITION 1 OF CERTAIN UNITED STATES REAL PROP- 2 ERTY INTERESTS. 3 (a) IN GENERAL.—Section 1445 of the Internal Rev- 4 enue Code of 1986 is amended by redesignating subsection 5 (f) as subsection (g) and by inserting after subsection (e) 6 the following new subsection: 7 ‘‘(f) SPECIAL RULE FOR CERTAIN DISPOSITIONS OF 8 RESIDENTIAL REAL PROPERTY.— 9 ‘‘(1) IN GENERAL.—In the case of the disposi- 10 tion of any applicable residential property, sub- 11 section (a) shall be applied by substituting ‘30 per- 12 cent’ for ‘15 percent’. 13 ‘‘(2) APPLICABLE RESIDENTIAL PROPERTY.— 14 For purposes of this subsection, the term ‘applicable 15 residential property’ means any interest which— 16 ‘‘(A) is an interest described in section 17 897(c)(1)(A)(i), and 18 ‘‘(B) is an interest in residential real prop- 19 erty.’’. 20 (b) EFFECTIVE DATE.—The amendments made by 21 subsection (a) shall apply to dispositions after the date 22 which is 60 days after the date of the enactment of this 23 Act. 24 VerDate Sep 11 2014 23:23 Jun 12, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3533.IH H3533 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 3533 IH SEC. 4. INCREASE IN LOW-INCOME HOUSING TAX CREDIT 1 STATE CEILING. 2 (a) IN GENERAL.—Section 42(h)(3)(C) of the Inter- 3 nal Revenue Code of 1986 is amended by striking ‘‘plus’’ 4 at the end of clause (iii), by striking the period at the 5 end of clause (iv) and inserting ‘‘, plus’’, and by inserting 6 after clause (iv) the following: 7 ‘‘(v) the qualified single-family hous- 8 ing amount determined under subpara- 9 graph (J).’’. 10 (b) QUALIFIED SINGLE-FAMILY HOUSING 11 AMOUNT.— 12 (1) IN GENERAL.—Section 42(h)(3) of the In- 13 ternal Revenue Code of 1986 is amended by adding 14 at the end the following new subparagraph: 15 ‘‘(J) QUALIFIED SINGLE-FAMILY HOUSING 16 AMOUNT.—The qualified single-family housing 17 amount determined under this subparagraph 18 for any calendar year is an amount equal to the 19 sum of— 20 ‘‘(i) 10 percent of the amount deter- 21 mined under subparagraph (C)(ii) for such 22 calendar year (determined after application 23 of subparagraphs (H) and (I)), 24 ‘‘(ii) the excess (if any) of the amount 25 described in clause (i) for the preceding 26 VerDate Sep 11 2014 23:23 Jun 12, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3533.IH H3533 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 3533 IH calendar year over the amounts allocated 1 to projects described in paragraph (9) for 2 such preceding calendar year, 3 ‘‘(iii) the amount allocated within the 4 State (not in excess of the amount deter- 5 mined under this subparagraph for the 6 preceding calendar year reduced by the 7 amount described in clause (ii) for the sec- 8 ond preceding calendar year) for any 9 project— 10 ‘‘(I) which is described in para- 11 graph (9) and which fails to meet the 12 10 percent test under paragraph 13 (1)(E)(ii) on a date after the close of 14 the calendar year in which the alloca- 15 tion was made, 16 ‘‘(II) which does not become a 17 qualified low-income housing project 18 described in paragraph (9) within the 19 period required by this section or the 20 terms of the allocation, or 21 ‘‘(III) which is described in para- 22 graph (9) and with respect to which 23 an allocation is cancelled by mutual 24 VerDate Sep 11 2014 23:23 Jun 12, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3533.IH H3533 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •HR 3533 IH consent of the housing credit agency 1 and the allocation recipient, plus 2 ‘‘(iv) the amount, if any, determined 3 under subparagraph (D), applied— 4 ‘‘(I) by substituting ‘unused 5 qualified single-family housing carry- 6 over’ for ‘unused housing credit carry- 7 over’ in clause (i) thereof, 8 ‘‘(II) without regard to clause (ii) 9 thereof, 10 ‘‘(III) by substituting ‘unused 11 qualified single-family housing 12 carryovers’ for ‘unused housing credit 13 carryovers’ in clause (iii) thereof, and 14 ‘‘(IV) by substituting ‘an amount 15 equal to its entire qualified single- 16 family housing amount to projects de- 17 scribed in paragraph (9)’ for ‘entire 18 State housing credit ceiling (deter- 19 mined without regard to amounts de- 20 scribed in subparagraph (C)(v))’ in 21 clause (iv)(I) thereof.’’. 22 (2) CONFORMING AMENDMENTS.— 23 (A) Section 42(h)(3)(C) of such Code is 24 amended by inserting ‘‘(other than amounts al- 25 VerDate Sep 11 2014 23:23 Jun 12, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3533.IH H3533 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •HR 3533 IH located from the qualified single-family housing 1 amount)’’ after ‘‘the housing credit dollar 2 amount previously allocated within the State’’. 3 (B) Section 42(h)(3)(D) of such Code is 4 amended by inserting ‘‘(determined without re- 5 gard to amounts described in subparagraph 6 (C)(v))’’ after ‘‘entire State housing credit ceil- 7 ing’’. 8 (c) SET ASIDE OF INCREASED AMOUNTS.—Section 9 42(h) of the Internal Revenue Code of 1986 is amended 10 by adding at the end the following new paragraph: 11 ‘‘(9) SET ASIDE OF QUALIFIED SINGLE-FAMILY 12 HOUSING AMOUNT.—The portion of the State hous- 13 ing credit ceiling which is equal to the qualified sin- 14 gle-family housing amount for any calendar year 15 shall be allocated to projects consisting of 1 to 4 16 dwelling units that are located in qualified census 17 tracts (as defined in subsection (d)(5)(B)(i)).’’. 18 (d) EFFECTIVE DATE.—The amendments made by 19 this section shall apply to allocations made for calendar 20 years beginning after the date of the enactment of this 21 Act. 22 Æ VerDate Sep 11 2014 23:23 Jun 12, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H3533.IH H3533 pbinns on DSKJLVW7X2PROD with $$_JOB