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Rubio Reintroduces Legislation to Increase Affordable Housing, Combat Illicit Foreign Investment in Urban Real Estate

Mar 11, 2021 | Comunicados de Prensa

Washington, D.C. — U.S. Senator Marco Rubio (R-FL) reintroduced the Home Advantage for American Families Act, which seeks to reduce foreign investment in the urban real estate market, much of which is connected to illicit activity, and instead increase investment in affordable housing. This bill stems from an increase in areas that are quickly becoming too expensive to live and the need to restore an equilibrium in housing markets for local residents who want to own a home and raise families. A one-pager of the bill is available here.
“Families in South Florida are struggling to find affordable housing as billions of dollars pour into local real estate, much of it connected to illicit foreign activity,” Rubio said. “To have a strong nation, we need strong communities, and to have strong communities we must have strong families. This bill would combat illicit finance in foreign real estate investment and increase affordable housing investment in South Florida, two important steps in tackling this problem.”  
Specifically, the Home Advantage for American Families Act:

  • Authorizes the Treasury Department to issue reports on behalf of the Financial Crimes Enforcement Network (FinCEN) for residential real estate transactions within the top fifteen Metropolitan Statistical Areas (MSAs) to identify the natural identities of foreign buyers.
  • Increases the Foreign Investment in Real Property Act (FIRPTA) of 1980 withholding tax on residential real estate to 30% for both foreign corporations and foreign individuals.
  • Provides an additional 10% of base-funding set-aside of the Low-Income Housing Tax Credit (LITHC) for single family home construction within Qualified Census Tracts (QCTs) to help states create more affordable housing opportunities that can accommodate a family.