Senator Henson introduces End Hedge Fund Control of Maryland Homes Act of 2025

Maryland lawmakers are taking a bold step to address the growing concern over hedge fund control of residential properties with the introduction of Senate Bill 582, also known as the "End Hedge Fund Control of Maryland Homes Act of 2025." Introduced by Senator Henson on January 23, 2025, this bill aims to impose an excise tax on the acquisition and excess ownership of single-family homes by certain entities, a move that could reshape the housing landscape in the state.

The bill seeks to tackle the issue of rising home prices and the increasing prevalence of institutional investors, particularly hedge funds, purchasing residential properties. By implementing an excise tax, the legislation aims to discourage excessive ownership and promote homeownership among Maryland residents. Additionally, it establishes the Down Payment and Settlement Expense Loan Program Fund, designed to assist potential homeowners with upfront costs, thereby enhancing access to housing.

Key provisions of the bill include a requirement for sellers to prioritize offers from certain individuals over institutional buyers during a specified period, which could help level the playing field for local buyers. The bill also proposes adjustments to the state transfer tax for residential property sales under specific circumstances, further incentivizing homeownership.

While the bill has garnered support from various community advocates who argue it addresses the housing crisis, it has also sparked debates among stakeholders. Critics, including some real estate investors, express concerns that the excise tax could deter investment in the housing market, potentially leading to a decrease in available rental properties and exacerbating housing shortages.

The implications of Senate Bill 582 are significant. If passed, it could alter the dynamics of the Maryland housing market, making it more accessible for residents while potentially limiting the influence of large investment firms. Experts suggest that the bill could serve as a model for other states grappling with similar issues of housing affordability and investor dominance.

As the bill moves through the legislative process, its fate will depend on ongoing discussions and potential amendments. Maryland residents are encouraged to stay informed about this critical legislation, as its outcomes could have lasting effects on the community's housing landscape and overall economic health.