The new law proposes to exclude Wall Street from the housing market.

The new legislation proposes to exclude Wall Street from the real estate market.

The Democrats in Congress have introduced a bill.

In both chambers of Congress on Tuesday, to prohibit hedge funds from buying and owning single-family homes in the United States.

The bill will require

From hedge funds, defined as corporations, partnerships, or trusts managing funds raised from investors, to sell all single-family homes they own within a 10-year period and ultimately prohibit such companies from owning any single-family homes. During the gradual liquidation period, the bill provides for the introduction of strict tax penalties, with revenues earmarked to support down payments for individuals wishing to buy homes from corporate owners.

Signed into law, legislative act

The law of 2023, aimed at ending hedge funds' control over American homes, could change the growing sector of the housing market and potentially increase the supply of single-family homes available to individual buyers. Homeownership, which has long been the foundation of generations of wealth in the United States, is becoming increasingly unattainable for Americans as housing prices and interest rates rise rapidly.

In specific legislative acts

Representatives Jeff Jackson and Alma Adams from North Carolina, both Democrats, introduced a bill to protect American neighborhoods on Wednesday.

With a divided Congress, laws are unlikely to be passed into legislation in this session. However, Mr. Smith stated that lawmakers need to start a dialogue.