A bill to amend the Internal Revenue Code of 1986 to impose an excise tax on the failure of certain hedge funds owning excess single-family residences to dispose of such residences, and for other purposes.

S 788, the HOPE for Homeownership Act, targets hedge funds with $50 million or more in assets under management that own single-family residences. It imposes two taxes: a 15% or $10,000 tax on acquiring new homes, and an annual tax of $5,000 per excess home held beyond a phased ownership limit (starting at 90% of prior holdings and declining to 0% after 9 years). The bill also disallows mortgage interest and depreciation deductions for properties owned by these funds when they owe the tax. This directly affects large hedge funds owning multiple single-family homes, requiring them to reduce holdings over time or pay ongoing taxes.