Bill Summary
The "Homes for American Families Act" seeks to amend the Sherman Act to impose restrictions on certain entities from purchasing residential real estate. Specifically, it targets real estate investment trusts, insurance companies, and large investment companies or private funds with assets over $150 million. Under this legislation, any purchase of residential real estate—defined to include single-family homes, condominiums, townhouses, and certain zoned land—by these covered entities would be deemed a violation of antitrust laws, constituting a "contract in restraint of trade."
However, there are exceptions for homebuilders, developers, or redevelopers, provided they are constructing units for non-restricted buyers. The Act also mandates that the Antitrust Division of the Department of Justice prioritize scrutiny and enforcement of antitrust laws concerning residential real estate transactions by these entities, particularly against any anti-competitive practices such as coordinated vacancy and pricing strategies. The legislation will take effect 90 days after its enactment.
Possible Impacts
The "Homes for American Families Act" proposed to amend the Sherman Act could have several effects on individuals and communities. Here are three examples:
1. **Increased Homeownership Opportunities for Individuals**: By restricting large entities such as real estate investment trusts, insurance companies, and private funds from purchasing residential real estate, the legislation aims to create a more equitable housing market. As a result, individual homebuyers may find it easier to purchase homes without facing competition from corporate entities that can outbid them. This could lead to greater accessibility to homeownership for families and individuals, particularly in markets that have seen rising prices due to institutional purchases.
2. **Impact on Housing Market Dynamics**: The prohibition on covered entities purchasing residential real estate could lead to a shift in the housing market. With fewer large-scale investors purchasing properties, the supply of available homes may increase, potentially stabilizing or even reducing property prices in some areas. Conversely, this could also discourage new investments in housing developments by large corporations, possibly leading to reduced housing supply in the long term if developers perceive the market as less favorable for investment.
3. **Enhanced Antitrust Enforcement**: This legislation mandates that the Department of Justice prioritize the review of residential real estate transactions by covered entities for anti-competitive behavior. This could lead to increased scrutiny of practices such as coordinated pricing strategies and vacancy strategies. For consumers, this means a more transparent and fair housing market where price manipulation and monopolistic behaviors are less likely to occur, ultimately benefiting renters and homebuyers by providing them with more favorable terms and conditions in the housing market.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3937 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 3937
To amend the Sherman Act to prohibit certain entities from purchasing
residential real estate, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 26, 2026
Mr. Hawley (for himself and Mr. Merkley) introduced the following bill;
which was read twice and referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend the Sherman Act to prohibit certain entities from purchasing
residential real estate, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Homes for American Families Act''.
SEC. 2. AMENDMENT.
(a) In General.--The Sherman Act (15 U.S.C. 1 et seq.) is amended
by adding at the end the following:
``SEC. 9. RESIDENTIAL REAL ESTATE CONTRACTS IN RESTRAINT OF TRADE.
``(a) Definitions.--In this section:
``(1) Covered entity.--
``(A) In general.--The term `covered entity'
means--
``(i) real estate investment trust;
``(ii) an insurance company; or
``(iii) an investment company or private
fund--
``(I) with assets under management
of not less than $150,000,000; or
``(II) that is directly or
indirectly owned or controlled by a
person that directly or indirectly owns
or controls 1 or more investment
companies or private funds with total
assets under management of not less
than $150,000,000.
``(B) Aggregation rules.--For purposes of
determining the assets under management of an entity
under subparagraph (A)(iii), all persons which are
treated as a single employer under subsection (b) or
(c) of section 414 of the Internal Revenue Code of 1986
shall be treated as one entity. For purposes of this
subsection, in applying section 414(b) of such Code,
section 1563 of such Code shall be applied without
regard to subsection (b)(2) thereof.
``(2) Insurance company.--The term `insurance company' has
the meaning given the term in section 2(a) of the Investment
Company Act of 1940 (15 U.S.C. 80a-2(a)).
``(3) Investment company.--The term `investment company'
has the meaning given the term in section 3 of the Investment
Company Act of 1940 (15 U.S.C. 80a-3).
``(4) Private fund.--The term `private fund' means a
corporation that would be considered an investment company
under section 3 of the Investment Company Act of 1940 (15
U.S.C. 80a-3) but for the application of paragraph (1) or (7)
of subsection (c) of such section 3.
``(5) Real estate investment trust.--The term `real estate
investment trust' has the meaning given the term in section 856
of the Internal Revenue Code of 1986.
``(6) Residential real estate.--The term `residential real
estate' means--
``(A) a single-family home;
``(B) a condominium;
``(C) a townhouse; and
``(D) any land that has been zoned by a local
government for the development of a property described
in subparagraphs (A) through (C).
``(b) Contracts in Restraint of Trade.--
``(1) In general.--Except as provided in paragraph (2), any
purchase by a covered entity of residential real estate shall
be deemed a contract in restraint of trade in violation of
section 1, except that the violation shall be civil only and no
criminal penalty under that section, including a term of
imprisonment, shall apply.
``(2) Exceptions.--Paragraph (1) shall not apply to a
homebuilder, developer, or redeveloper if the units of
residential real estate are being or have been constructed for
ownership by a person or entity that is not prohibited from
purchasing residential real estate under this subsection.
``(3) Application.--Paragraph (1) shall only apply to the
purchase of residential real estate on or after the date of
enactment of this section.
``(c) Prioritized Antitrust Scrutiny and Enforcement.--The
Assistant Attorney General in charge of the Antitrust Division of the
Department of Justice shall prioritize the review of purchases of
residential real estate by a covered entity for anti-competitive
effects and prioritize enforcement of antitrust laws, as appropriate,
against coordinated vacancy, pricing strategies, and other
anticompetitive practices by covered entities in local residential real
estate markets.''.
(b) Effective Date.--This Act and the amendments made by this Act
shall take effect on the date that is 90 days after the date of
enactment of this Act.
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