U.S. Senator Jacky Rosen has introduced the Housing Oversight and Mitigating Exploitation (HOME) Act, aiming to address the issue of corporate investors driving up housing prices in Nevada by engaging in price gouging.
The bill targets corporate ownership of single-family homes, estimated to constitute 15 percent of homes, contributing to increased housing costs for residents. The HOME Act proposes measures to crack down on price manipulation and gouging by corporate investors, empowering the U.S. Department of Housing and Urban Development (HUD) to investigate such practices.
The legislation does not explicitly define “unreasonable price” but seeks to prevent the renting or selling of dwelling units at such prices during an affordable housing crisis.
Rosen pointed to the impact of high housing costs on Nevadans and aimed to lower housing costs by curbing the influence of corporate investors. The fines collected through the proposed measures would go into the National Housing Trust Fund for enhancing affordable housing nationwide.
Last year, Congressman Steven Horsford introduced a similar version of the legislation in the House of Representatives, highlighting the trend of private corporate speculators targeting communities of color and single mothers. Horsford supports Rosen’s bill.
It would be illegal to rent or sell dwellings at unreasonable prices during an affordable housing crisis under the HOME Act. It would also direct HUD to investigate market manipulation and price gouging and empower the Secretary of HUD to monitor and investigate home purchases by corporate investors. The bill also seeks to limit investments from Fannie Mae and Freddie Mac to organizations that violate renter protections or engage in egregious rent increases.
The legislation has received endorsements from the Nevada Housing Coalition and the National Low Income Housing Coalition.
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