Rubio Introduces Bill to Increase Affordable Housing, Combat Illicit Foreign Investment in Urban Real Estate

Statement

U.S. Senator Marco Rubio (R-FL) introduced 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 equilibrium in housing markets for local residents to own a home and raise families. A one-pager of the bill is available here.

"As billions of dollars pour into South Florida real estate, much of it is connected to foreign illicit activity, causing families in our communities to face an ever increasing challenge of finding affordable housing," Rubio said. "To have a strong nation, we need strong communities, and to have strong communities we must have strong families. Combating illicit finance in foreign real estate investment and increasing affordable housing investment in South Florida are key to tackling this problem confronting so many Floridians, and this bill would do exactly that."

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.

Source