H.R. 3745 — American Neighborhoods Protection Act of 2025

This section establishes an excise tax under new IRC §5000E on covered taxpayers equal to $10,000 for each single-family residence (i.e., a residential property with not more than 4 dwelling units) owned in excess of 75 as of the last day of the taxable year, where ownership means a direct majority ownership interest. A covered taxpayer excludes (1) a mortgage note holder owning through foreclosure, (2) a tax-exempt 501(c)(3) organization, (3) a person primarily engaged in constructing or rehabilitating single-family residences, or (4) a person owning federally subsidized housing; related persons are aggregated as a single taxpayer under modified IRC §52 rules. Residences sold during the year to a corporation or trade-or-business entity, a group of more than 2 individuals, or a person owning any other single-family residence count as owned at year-end. The Secretary must require reporting, including purchaser certifications identifying certain sales, with a $50,000 penalty (waivable for reasonable cause) for failures. The tax applies to taxable years beginning after December 31, 2025.

This section establishes in the Treasury the Housing Trust Fund, to which amounts equivalent to revenues from the tax imposed by new IRC §5000E are appropriated for grants under this provision. It further directs the Secretary of Housing and Urban Development to make such grants to state housing finance agencies for new or supplemental down-payment assistance programs for families purchasing homes, with priority for single-family residences sold or transferred by covered taxpayers (as defined in IRC §5000E(b)).