American Neighborhoods Protection Act of 2025

The American Neighborhoods Protection Act of 2025 creates a nationwide limit on ownership of single-family residences and pairs that limit with a new excise tax and a housing-aid funding program. The core idea is to prevent individuals or entities from hoarding large numbers of small residential properties and to redirect tax revenues into down payment assistance for homebuyers. Under the bill, no taxpayer may own more than 75 single-family residences, with a tax penalty applied to any holdings beyond that cap. The law also establishes a Housing Trust Fund funded by the new excise tax to support down payment grants through state housing finance agencies, prioritizing purchases of homes sold or transferred by a covered taxpayer. Reporting requirements and penalties for noncompliance are included, along with rules to define who is considered a “covered taxpayer” and how ownership is counted, especially for related-party entities. Sponsors noted in the bill include Ms. Adams and several co-sponsors; the bill was introduced in the House and referred to committees. If enacted, the changes would take effect for taxable years beginning after December 31, 2025. Example: If a taxpayer owns 90 single-family residences, the excise tax would be calculated as (90 − 75) × $10,000 = $150,000 for that tax year, subject to the defined exemptions for certain entities and circumstances.