S. 2573: Foreign Property Ownership Transparency Act

This bill, known as the Foreign Property Ownership Transparency Act, aims to address the increasing trend of foreign individuals, entities, and governments purchasing residential real estate in the United States. Here are the main points of the bill:

Purpose of the Bill

The primary purpose of this legislation is to require a detailed study on foreign purchases of residential real estate in the U.S., assessing the implications of such ownership on housing markets and affordability.

Key Findings

In its findings, Congress states that:

• There is a significant rise in foreign purchases of U.S. residential properties.
• Many foreign acquisitions are conducted through shell companies or trusts, which raises questions regarding transparency and the true owners of these properties.
• Foreign property ownership may affect housing affordability, particularly in urban and coastal markets where demand is high.
• Currently, the federal government lacks a coherent understanding of foreign residential property ownership's extent and impact.

Study Requirements

The Comptroller General of the United States is tasked with conducting a comprehensive study which will include:

• An analysis of the number and geographical distribution of foreign residential property purchases in the U.S. since January 1, 2015.
• An assessment of the ownership structures involved in these purchases, such as shell companies and trusts.
• An evaluation of how these purchases impact housing affordability and availability for U.S. residents.
• A review of data collection efforts at federal, state, and local levels related to foreign property ownership, identifying any gaps.
• An examination of national security issues related to these purchases, particularly regarding properties located near sensitive sites.

A report summarizing this study is to be submitted to the Senate's Committee on Finance within one year of the bill's enactment.

HUD Assessment and Recommendations

The Secretary of Housing and Urban Development (HUD), in coordination with the Comptroller General, will carry out the following tasks:

• Review the study's findings.
• Assess the impact of foreign investments in real estate on U.S. housing markets and affordability.
• Consult with state and local housing authorities regarding trends associated with foreign property purchases.

Following this review, the Secretary of HUD must deliver a report to Congress within 180 days that includes:

• Recommendations for enhancing transparency in foreign ownership of residential properties.
• Suggestions for ensuring that U.S. residents maintain access to residential real estate transactions.
• Any necessary legislative or regulatory actions to implement these recommendations.

Relevant Companies

None found