Heinrich to Hedge Funds: “Get Out of the Housing Market”

Heinrich Cosponsors Legislation to Kick Hedge Funds Out of the Housing Market, Lower Housing Costs for New Mexico Families

WASHINGTON - U.S. Senator Martin Heinrich (D-N.M.) cosponsored the Humans Over Private Equity (HOPE) for Homeownership Act, legislation to kick hedge funds out of the housing market and lower housing costs for New Mexico families.

"My message to hedge funds: Get out of the housing market. The American dream of home ownership should be in the hands of New Mexico families, not billionaire investors," said Heinrich. "I'm proud to push for legislation that will kick hedge funds out of the housing market and help bring down housing costs for working families. Because every New Mexican deserves an affordable place to call home."

Large-scale hedge fund investors have entered the housing market at an alarming rate. In 2011, no single entity owned over 1,000 single-family rental units. In 2022, large institutional investors and hedge funds owned about 700,000 single-family home rentals, and financial analysts forecast that this ownership footprint will grow to 40% of all single-family home rentals by 2030.

The HOPE for Homeownership Act will kick hedge funds out of New Mexico's single-family housing market by:

• Establishing a new tax penalty of 15% of the sale price (or $10,000, if greater) for hedge funds buying additional single-family homes;

• Taking away depreciation and mortgage interest tax breaks; and

• Imposing a new $5,000 per home tax penalty for hedge funds failing to fully sell off their currently owned single-family homes each year over a 10-year period.

The HOPE for Homeownership Act is led by U.S. Senator Jeff Merkley (D-Ore.). Alongside Heinrich, the HOPE for Homeownership Act is cosponsored by U.S. Senators Ruben Gallego (D-Ariz.), Mark Kelly (D-Ariz.), Angus King (I-Maine), Chris Van Hollen (D-Md.), and Bernie Sanders (I-Vt.). U.S. Representative Linda Sánchez (D-Calif.) and U.S. Representative Adam Smith (D-Wash.) are leading the House companion legislation.

The HOPE for Homeownership Act is endorsed by Americans for Financial Reform, Consumer Action, National Housing Resource Center, National Consumer Law Center (on behalf of its low-income clients), National Housing Law Project, and Private Equity Stakeholder Project.

A summary of the bill is here.

The full text of the bill is here.

As a member of the U.S. Senate Appropriations Committee, Heinrich has directly secured millions in investments for New Mexico renters and first-time homeowners.

In Fiscal Year 2026 (FY26) funding, Heinrich successfully secured $3.5 billion to prevent veteran homelessness, including:

• $659 million to bolster the Supportive Services for Veteran Families Program, which will help meet the needs of veterans including help with the rising costs of household goods;

• $703 million for case management and administration of Housing and Urban Development - Veterans Affairs Supportive Housing vouchers;

• $277 million for the Grant and Per Diem Program, which will support transitional housing and assist veterans in achieving housing stability; and

• $174 million for Veterans Justice Outreach and Legal Services for Veterans grants to award community-based organizations with funds to assist veterans with legal issues like accessing benefits, navigating family law, and securing safe and stable housing.

Additionally, Heinrich secured $1.715 billion in the FY26 funding for rental assistance to help ensure Americans living in rural areas have access to safe and affordable housing. Heinrich also secured $1 billion in Single Family Direct Loans to help more low-income families and first-time home buyers get mortgages.

As then-Chair of the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, Heinrich secured $1.6 billion for rental assistance in his FY24 Agriculture Appropriations Bill - an increase of $120 million over FY23. Heinrich's FY24 bill also provided for a pilot program that decoupled rental assistance from Multifamily Direct Loans, preventing thousands of low-income families from losing rental assistance.

In the FY24 Transportation, Housing and Urban Development, and Related Agencies Appropriations Bill, Heinrich secured $1,100,000 for Santa Fe Habitat for Humanity to develop land into a mixed-income development focused on building 25 to 30 housing units for working families. In total, Heinrich has secured $14,500,000 in Congressionally Directed Spending (CDS) for Northern New Mexico to address the housing shortage.

In October 2024, Heinrich met with leaders from Santa Fe Habitat for Humanity and Homewise to announce his New Homes Tax Credit Act, legislation to build more housing and renovate homes for working families and see how the $1,100,000 he secured through the Appropriations process is helping Santa Fe Habitat for Humanity develop land and build housing for working families.

In May 2024, Heinrich and the N.M. Congressional Delegation welcomed $11,855,081 in federal funding from the U.S. Department of Housing and Urban Development (HUD) to support public housing authorities build, renovate, and modernize public housing across New Mexico.

In February 2024, Heinrich and the N.M. Congressional Delegation welcomed more than $16 million in federal funding from HUD' Continuum of Care program to support New Mexico projects that provide housing assistance and supportive services to people experiencing homelessness.

Additional background on Heinrich's work to lower housing costs, help New Mexico families become first-time homeowners, and address the homelessness crisis.

Last August, Heinrich reintroduced the First-Time Homebuyer Tax Credit Act, legislation that aims to support middle-class New Mexicans purchasing their first home. The bill would establish a refundable tax credit worth up to 10 percent of a home's purchase price - up to a maximum of $15,000 - for first-time homebuyers.

Last April, Heinrich and U.S. Senator Ben Ray Luján (D-N.M.) introduced the Housing for All Act, legislation that will help address the housing shortage and homelessness crises in New Mexico. If passed, the bill will invest in proven solutions to address housing shortages and provide a historic level of federal funding for programs to bolster innovative, locally developed solutions to increase the housing stock in the state and help New Mexicans experiencing homelessness.

Last March, Heinrich demanded that U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner follow the law and deliver $3.6 billion in Congressionally appropriated funding to support Continuum of Care program recipients, a vital local program aimed at curbing homelessness across the country, including in New Mexico.

Last January, Heinrich stood alongside the New Mexico Congressional Delegation in welcoming $17.1 million - a 5.3% increase from the previous year - to support New Mexico projects that provide housing assistance and supportive services to people experiencing homelessness through HUD's Continuum of Care program.

In 2024, Heinrich introduced the New Homes Tax Credit Act, legislation that will provide tax credits to incentivize new investments and additional resources for single-family home construction and renovations for working families. In Albuquerque, Santa Fe, and Las Cruces, New Mexico, for example, this added housing inventory would benefit families with annual incomes of up to $103,680, $109,800, and $78,960, respectively.

Additionally, at a roundtable conversation with local educators in Albuquerque, Heinrich announced his Educator Down Payment Assistance Act, legislation designed to help more educators and school staff in New Mexico purchase a home and keep teachers in the communities where they teach.

As then-Chairman of the U.S. Joint Economic Committee (JEC), Heinrich released a report on housing supply in America, which found that underbuilding, restrictive zoning policies, and home financing hurdles have caused the supply of starter homes to shrink and prices to rise. High interest rates and mangled supply chains have also contributed to increased home prices. Heinrich also chaired a JEC hearing on the report. His full opening statement can be found here.

In 2023, Heinrich introduced the Affordable Housing Credit Improvement Act, legislation to help build over 14,000 new affordable homes in New Mexico over the next decade, generating over $2.5 billion in wages and business income. The legislation will support the financing of more affordable housing by expanding and strengthening the Low-Income Housing Tax Credit, our country's most successful affordable housing program.

Heinrich also introduced the Delivering Essential Protection, Opportunity, and Security for Tenants (DEPOSIT) Act, legislation to help an estimated 12,000 New Mexican families access rental housing through the Housing Choice Voucher Program to pay security deposits and get into a rental home.

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