BILL NUMBER: S1572
SPONSOR: KRUEGER
 
TITLE OF BILL:
An act to amend the tax law, in relation to impose an excise tax on the
failure of certain hedge funds owning excess single-family residences to
dispose of such residences; and to amend the state finance law, in
relation to establishing the housing down payment trust fund and direct-
ing the commissioner of the state division of housing and community
renewal to establish a grant program
 
PURPOSE:
The purpose of the "End Hedge Fund Control of New York Homes Act" is to
prohibit large hedge funds from buying up and swaths of homes across New
York state.
 
SUMMARY OF PROVISIONS:
Section 1. Short title.
Section 2. Amends the tax law by adding a new article 20-E.
Section 3. Amends the state finance law by adding a new section 80-b.
Section 4. Sets the effective date.
 
JUSTIFICATION:
Across the nation and in New York state, there has been a rise in
private equity buying up single-family housing stock. These entities are
then able to set higher rents.
According to the Urban Institute, during the first three months of 2023,
hedge funds purchased 27% of single-family homes for sale in the United
States 1.
This bill, modeled off of federal legislation, will establish fines for
large financial entities such a a hedge fund when they purchase or fail
to dispose of a single-family home. Revenue raised will be deposited
into a housing down payment trust fund.
 
RACIAL JUSTICE IMPACT:
These predatory practices disproportionately impact historically
redlined communities. A US House of Representatives Financial Services
Committee report found that hedge funds targeted homes in neighborhoods
with large Black populations and 30% more single mothers than the
national average.
 
GENDER JUSTICE IMPACT:
TBD.
 
LEGISLATIVE HISTORY:
2023-24:S.9096/A.8829 - Referred to IGO
 
FISCAL IMPLICATIONS:
Revenue Positive for the State
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after the effective date of this act.