NEWS: Sen. Schiff Joins Senate Democrats to Introduce the American Homeownership Act to Stop Wall Street’s Housing Grab and Get Homes Back into the Hands of Families

Bill ends tax breaks and housing benefits for Wall Street, corporate landlords and reinvests the savings into building new housing and helping Americans achieve homeownership

Washington, D.C. - Today, U.S. Senator Adam Schiff (D-Calif.) joined Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee Jeff Merkley (D-Ore.), Ranking Member of the Senate Budget Committee, and 15 Democratic Senators to introduce The American Homeownership Act to rein in corporate landlords and get housing back into the hands of the American people. The bill would end tax breaks and other housing benefits for Wall Street landlords and reinvest the savings to increase the supply of affordable housing, bring down housing costs, and support homeownership for real people. The bill will also empower antitrust enforcers to prevent the kind of corporate buy-ups that squeeze out families trying to buy their own homes or afford their rent.

In addition to Senators Schiff, Warren, and Merkley, the American Homeownership Act is co-sponsored by Amy Klobuchar (D-Minn.), Tina Smith (D-Minn.), Richard Blumenthal (D-Conn.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), Martin Heinrich (D-N.M.), Mazie Hirono (D-Hawai'i), Tim Kaine (D-Va.), Andy Kim (D-N.J.), Edward J. Markey (D-Mass.), Christopher Murphy (D-Conn.), Brian Schatz (D-Hawai'i), Bernie Sanders (I-Vt.), Chris Van Hollen (D-Md.), and Peter Welch (D-Vt.).

The American Homeownership Act is endorsed by American Economic Liberties Project, American Federation of Teachers, Americans for Financial Reform, Communications Workers of America, Consumer Action, Grounded Solutions Network, National Community Reinvestment Coalition, National Housing Law Project, National Low Income Housing Coalition, and Private Equity Stakeholder Project.

"Big corporate landlords, including private equity and Wall Street firms, have driven up housing costs in communities across the country. This is especially true California, where families are struggling to keep up with the high costs of rent and where buying a home is nearly unattainable for millions of people. I'm proud to join Senator Warren on this bill to end tax benefits for major corporate landlords and reinvest those tax savings to help people afford homes," said Senator Schiff.

"America is in a housing crisis - and we need to tackle it from every angle. I've introduced the biggest bipartisan housing supply reform in decades. Today Democrats are introducing legislation to stop Wall Street from snapping up homes in bulk and jacking up rent for families," said Ranking Member Warren. "This bill will take on predatory landlords while making investments to increase housing supply and boost homeownership for Americans."

"Hedge funds are driving up home prices and rents across America as they gobble up single-family homes. They are a significant factor in killing the dream of home ownership and must be stopped," said Ranking Member Merkley. "Even President Trump has acknowledged the problem. I'll work with anyone, on either side of the aisle, who is serious about driving down home prices and rents."

"Republicans in Congress and Donald Trump have set up the current tax code to incentivize and reward corporate landlords and private equity to swoop in and buy up affordable homes across the country with all-cash offers that regular people can't compete with. Why is our economic system rigged in favor of these corporations and wealthy investors who don't need our help, and not designed to help working families? I'm glad to be joining Senator Warren and my colleagues to introduce this important bill to address housing affordability for regular Americans. Instead of delivering returns for Wall Street, we're focused on making sure families looking to buy homes can find a place within their budget," said Senator Smith.

"This legislation helps combat the housing crisis plaguing our country by ending major tax breaks for Wall Street landlords and investing in affordable housing-putting power back in the hands of American families. Big corporations are buying up homes and subjecting individuals to skyrocketing housing prices, unaffordable rent, unfair fees, and cruel evictions. This bill ends major federal tax deductions and other benefits for Wall Street landlords and reinvests those tax savings to build more housing and lower costs, helping more Americans achieve the dream of homeownership. If President Trump is serious about prioritizing American families over corporate interests, this legislation is the answer," said Senator Blumenthal.

"Owning a home is a key way for Americans to lay down roots, build equity, and establish long-lasting community. But while Americans are struggling with skyrocketing costs of living, high rent prices, and limited housing availability, Wall Street executives are profiting," said Senator Hirono. "This legislation reigns in Wall Street Executives and corporate landlords to make home ownership a possibility for millions of more Americans. By eliminating corporate tax incentives and investing in affordable housing supply, we can put home ownership back in the hands of working families."

"As working Americans suffer under this housing crisis, we have a broken tax code that continues to only favor the select few. More and more families across New Jersey and our country will be generations away from being able to buy a home if we do not act. This bill is an important step to level the playing field and make sure there is a healthy supply of homes built for what families need at a fair price they can afford," said Senator Kim.

"Housing is a human right, not an opportunity for Wall Street to turn a quick buck. Private equity firms that extract wealth from our communities have no businesses owning family homes, and the federal government has no businesses giving tax breaks to those companies. I'm proud to cosponsor this legislation that ends favorable tax treatment for Wall Street while investing in affordable housing," said Senator Markey.

"We have to build millions of new homes to fix the housing crisis - but we also need to stand up to the private equity billionaires who buy up homes and apartments just to jack up prices for working Americans," said Senator Murphy. "Our bill forces big corporate buyers to either stop squeezing out family homeowners or pay tax penalties that go towards building new affordable housing. We don't have to allow greedy corporations to make it impossible for Connecticut families to make rent or buy a home, and I'm proud to support legislation that puts a stop to it."

"It is unconscionable that at a time when nearly 22 million Americans are spending 50% or more of their income on housing and when nearly 800,000 Americans are homeless, Wall Street billionaires are raking in obscene profits by buying up homes across the country and raising rents," said Senator Sanders. "It is time for Congress to take on Wall Street's greed and recklessness. We cannot allow these firms to continue to fuel our housing crisis."

"Wall Street and private equity giants are buying up growing shares of housing - squeezing out families from homeownership and taking advantage of renters. This legislation closes tax loopholes that have encouraged corporate landlords to take over housing markets and puts those savings toward the development of good homes that more Americans can afford," said Senator Van Hollen.

"Vermonters are amongst the hardest hit by the affordable housing crisis-our state has the fourth-highest rate of homelessness in the country. That crisis is made worse when we have private equity firms out-bidding hardworking families on affordable housing options," said Senator Welch. "We need to combat institutional influence in the housing market to ensure everyday Americans can find and afford a safe place to live."

Background: In addition to co-sponsoring this legislation, Senator Schiff unveiled landmark legislation last year to spur a new generational boom in housing construction across the United States and help address the root causes of the housing affordability crisis, including the lack of supply, rising rents, and increasingly out of reach pathways to homeownership for Americans.

The full text of the bill is available here.

The fact sheet of the bill is available here.

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