Democrats counter Trump's proposal to limit institutional housing investors
#Elizabeth Warren#Housing affordability#Corporate landlords#Tax deductions#State of the Union#Housing supply#Bipartisan bill#Institutional investors
📌 Key Takeaways
Senate Democrats introduced bill targeting corporate landlords with 50+ single-family homes
Bill would eliminate tax benefits and federally backed mortgages for these corporations
Trump's administration proposes different threshold of 100+ homes with different exceptions
Both approaches come as Congress works on bipartisan housing legislation
📖 Full Retelling
Senate Democrats led by Elizabeth Warren and Jeff Merkley introduced a bill targeting institutional housing investors in Washington on the eve of President Trump's State of the Union address, proposing to end tax benefits for corporations owning more than 50 single-family rental homes amid bipartisan efforts to address the nation's housing affordability crisis. The legislation, backed by 17 Democratic senators, would prevent large corporate landlords from claiming deductions for housing value depreciation and mortgage interest payments, while also prohibiting them from obtaining federally backed mortgages. However, the bill includes a temporary exemption for companies building new multifamily housing or rehabilitating uninhabitable properties. This contrasts with the Trump administration's proposal, which would ban institutional investors owning more than 100 single-family homes from purchasing additional properties, though with exceptions for companies that increase the overall housing stock. The competing approaches come as Congress works to finalize bipartisan housing legislation aimed at boosting supply and affordability, with the House having passed a comprehensive bill earlier this month and the Senate advancing its own version last year.
Annual report by the president of the United States
The State of the Union address (sometimes abbreviated to SOTU) is an annual message delivered by the president of the United States to a joint session of the United States Congress near the beginning of most calendar years on the current condition of the nation. The speech generally includes reports...
A tax deduction is an amount deducted from taxable income, usually based on expenses such as those incurred to produce additional income. Tax deductions are a form of tax incentives, along with exemptions and tax credits. The difference between deductions, exemptions, and credits is that deductions ...
Elizabeth Ann Warren (née Herring; born June 22, 1949) is an American politician and former law professor who is the senior United States senator from the state of Massachusetts, serving since 2013. A member of the Democratic Party and regarded as a progressive, Warren has focused on consumer protec...
Housing affordable to those with a median household income
Affordable housing is housing which is deemed affordable to those with a household income at or below the median, as rated by the national government or a local government by a recognized housing affordability index. Most of the literature on affordable housing refers to mortgages and a number of fo...
Both congressional Democrats and President Donald Trump both want to limit how many homes major corporations can own, but a new proposal from Sen. Elizabeth Warren , D-Mass., makes it clear that's where the agreement ends. In a bill released hours before Trump's State of the Union speech, Warren, Sen. Jeff Merkley , D-Ore., and 16 other Senate Democrats propose ending some housing-related tax benefits for major corporations. The bill would prevent companies with more than 50 single-family homes for rent from taking deductions for housing value depreciation and mortgage interest payments. Corporations would also be barred from getting federally backed mortgages. The bill would provide a temporary carve-out for companies building new multifamily housing or rehabilitating properties that would otherwise be uninhabitable. The Trump administration is pushing its own housing proposal. In a memo sent to lawmakers last week, the administration proposed banning institutional investors who own more than 100 single-family homes from buying any new ones. Trump's proposal also includes several exceptions for companies that increase the number of single-family homes. The dueling proposals come as legislation to boost housing supply and affordability is in the home stretch to becoming law. The House passed a bipartisan bill earlier this month with broad support, and the Senate advanced its own bipartisan bill last year. The two sides are working to combine the proposals into a final package. Subscribe to CNBC PRO Subscribe to Investing Club Licensing & Reprints CNBC Councils Select Personal Finance Join the CNBC Panel Closed Captioning Digital Products News Releases Internships Corrections About CNBC Site Map Podcasts Careers Help Contact News Tips Got a confidential news tip? We want to hear from you. Get In Touch CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products a...
