Tester Leads Bill to Lower Montana Housing Costs by Cracking Down on Hedge Fund Ownership

Senator leads End Hedge Fund Control of American Homes Act to stop hedge funds from buying up Montana residential homes and jacking up costs

As part of his continued efforts to combat the rising cost of housing across Montana, U.S. Senator Jon Tester is leading legislation to crack down on hedge fund ownership of residential housing. Tester's End Hedge Fund Control of American Homes Act would impose strict taxes on hedge funds and wealthy Wall Street investment companies to stop them from acquiring single-family homes in order to jack up prices.

"Montana families are struggling with the rising cost of housing, and Wall Street hedge funds that are scooping up residential homes and jacking up prices across our state are a part of the problem," said Tester. "That's why I'm backing commonsense legislation to crack down on these greedy corporations and help give more Montana families a fair shot at owning a home in the communities they live and work in."

Tester's End Hedge Fund Control of American Homes Act would specifically create a new 50% excise tax on the purchase of single-family residences by certain managed funds or investment vehicles, partnerships, corporations, and real estate investment trusts. The bill would also create a new $50,000 annual tax on each single-family home that a hedge fund owns, and a $50,000 annual tax on other investors on each home they own above 50 total, phased in over nine years. The proceeds of these taxes would be used for a Housing Downpayment Trust Fund.

Tester has worked to tackle the rising cost of housing across Montana. Earlier this month, Tester announced he is leading legislation that would provide a tax credit for Montanans buying their first home. Tester's First-Time Homebuyer Tax Credit Act would put homeownership in reach for more Montana families by establishing 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.

In July, Tester secured $10.2 million in Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant funding to improve housing and critical infrastructure in East Helena. Earlier this year, Tester secured more than $16 million for housing programs across the state to increase the supply of housing for Montanans.

In November, Tester introduced his Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Act - legislation that would revitalize Montana's affordable housing supply by establishing a manufactured housing community improvement grant program. Last September, Tester also introduced his bipartisan Rural Housing Service Reform Act of 2023 - legislation which would improve federal rural housing programs, cut government red tape, and strengthen the supply of affordable housing across Montana.