Housing Bill Funds Homeless Diversion, Taxing $10M Homes and Landlords Without Rent Protection

The “Housing Is a Human Right Act of 2025” is a massive policy effort that tries to tackle homelessness and housing instability from multiple angles, pairing billions in new funding for services with new federal taxes aimed at real estate speculation and large corporate landlords. This isn’t just about shelters; it’s about changing how communities treat homelessness and who pays for the solutions.

The Shift from Penalties to Programs

One of the most significant changes is the push to end the criminalization of homelessness. Title I authorizes $100 million annually for ten years in grants to states and local governments to fund alternatives to punishing people for being homeless. This means money for pre-arrest diversion programs and mobile crisis teams—staffed by mental health experts and housing specialists, not just police—to respond to non-violent crises (Sec. 103). For someone sleeping in a park, this bill aims for a specialist offering help instead of a ticket or an arrest. Crucially, local governments seeking these funds must commit to adopting a “Housing First” strategy and stopping the enforcement of laws that punish people for sleeping outside when they have no other option (Sec. 305).

Billions for Infrastructure and Basic Needs

Title II creates a new funding stream called the Community Development Block Grant Plus (CDBG Plus), which is laser-focused on housing stability. Grantees must prioritize ending homelessness and housing instability for extremely low-income households (Sec. 201). This money can be used for things like buying property for permanent affordable housing, funding medical respite care for sick homeless individuals, and building basic infrastructure like public bathrooms and water fountains—the kind of infrastructure that supports human dignity (Sec. 201). For a city resident, this could mean seeing unused public buildings converted into housing or a new, safe public restroom facility downtown. The bill authorizes up to $6 billion annually for this program, funded in part by the new taxes.

The Real Estate and Landlord Tax Hook

The bill proposes to fund these massive programs by creating three new federal taxes in Title VI, targeting high-end real estate and large-scale corporate rental ownership. First, there’s a new 5% tax on the sale of real property that goes for $10 million or more, paid by both the buyer and the seller (Sec. 601(a)). If you’re buying a $15 million property, that’s an extra $750,000 tax bill. Second, a “Real Property Secrecy Transfer Tax” imposes a steep $10 tax for every $100 (10%) realized in a sale involving an “applicable anonymous entity”—basically, a shell company where the beneficial owners aren't publicly known (Sec. 601(b)). This is a direct shot at opaque real estate investment.

Third, and perhaps most relevant to renters, is the “Mass Landlord Rental Tax.” This imposes a 1% tax on rent collected by “covered landlords”—those owning over 2,000 units nationally or 1,000 in a single metro area (Sec. 601(c)). However, here’s the catch: the tax does not apply to any unit protected by local or state laws that include rent control (limiting annual increases to CPI or 3%, whichever is higher) and “just cause” eviction protections. This is a powerful financial incentive for massive corporate landlords to either adopt strong tenant protections or face a new federal tax bill. For a renter living in a building owned by a massive national company, this provision could be the leverage needed to push for local rent stabilization and eviction protection laws.

Accountability and Access

Beyond funding, the bill makes the U.S. Interagency Council on Homelessness permanent (Title V) and establishes a new Advisory Board composed of at least 10 people with lived experience of homelessness or housing instability (Sec. 503). This ensures that federal strategy is informed by the people it aims to serve. Furthermore, Title IV mandates a study on the barriers that prevent homeless and housing-unstable individuals from voting, and it authorizes $5 million annually for grants to nonprofits to help these populations register and cast their ballots (Sec. 402). This recognizes that housing stability isn't just about shelter; it's about full civic participation.