HART Act
- Sponsor
- Sen. Klobuchar, Amy [D-MN]
- Committees
- Judiciary Committee (primary)
- Last action
- May 15, 2025
Bottom line
The HART Act significantly broadens federal antitrust oversight to encompass large-scale and aggregated acquisitions of residential and investment rental properties, aiming to address market concentration in the housing sector.
What it actually does
This bill amends the Clayton Act to expand premerger notification requirements under the Hart-Scott-Rodino (HSR) Act to include certain acquisitions of residential property. It mandates that all residential property acquisitions by a single entity within a calendar year be aggregated for HSR review and removes an existing exemption for investment rental property, including those held by Real Estate Investment Trusts (REITs).
Proponents argue
Proponents argue that the bill is crucial for addressing the housing affordability crisis by preventing large institutional investors from dominating residential markets, which they contend drives up housing costs and limits opportunities for individual homebuyers. They believe increased antitrust scrutiny will foster greater competition and fairness.
Opponents contend
Opponents may contend that expanding antitrust regulation to residential property acquisitions could impose undue regulatory burdens, deter legitimate investment in housing, and potentially slow down housing development and maintenance, ultimately exacerbating housing supply issues rather than resolving them.
The bill text is concise, allowing for a quick read, but its implications for existing antitrust law and real estate markets require careful consideration.
Section 2(1)
Defines "Residential Property"
This provision clarifies that "residential property" includes any property zoned or intended for individual or household dwelling, such as multifamily housing, condominiums, manufactured homes, and single-family homes. It explicitly excludes short-term lodging. This definition is crucial as it determines the scope of transactions subject to new notification requirements under the bill.
Supporters argue
Supporters argue this clear definition ensures comprehensive coverage of the housing market, preventing loopholes that could allow large entities to circumvent review by acquiring different types of residential units.
Critics contend
Critics might argue that such a broad definition could inadvertently capture a wider range of transactions than intended, potentially burdening smaller investors or those involved in diverse real estate portfolios.
Tradeoffs
Balances the need for broad oversight of residential property acquisitions with potential concerns about overreach into various real estate sectors.
Section 2(2)
Defines "Investment Rental Property"
This section defines "investment rental property" as real property held solely for rental or investment purposes, not rented to an acquiring entity's affiliates except for maintenance or management. This definition is key for determining which rental property investment transactions, particularly those involving Real Estate Investment Trusts (REITs), will lose their previous exemption from premerger notification.
Section 3(a)
Aggregates Residential Property Acquisitions for HSR Review
This provision amends Section 7A(a) of the Clayton Act to require that all acquisitions of residential property by a single person within a calendar year be treated as a single acquisition for premerger notification purposes. Notification must be filed when the cumulative value of these acquisitions meets the existing Hart-Scott-Rodino (HSR) Act thresholds, preventing large investors from avoiding review by making multiple smaller acquisitions.
Section 3(b)
Modifies HSR Exemption for Investment Property
This section amends Section 7A(c)(1) of the Clayton Act to remove the exemption for certain acquisitions of investment rental property or residential property from premerger notification requirements. Specifically, it states that the exemption does not apply if the transaction includes residential property or investment rental property (including in the form of a real estate investment trust) that is not solely intended for the personal use of an individual. This directly targets institutional real estate investments.
Section 3(c) and 3(d)
FTC Rulemaking Authority for Implementation
This provision directs the Federal Trade Commission (FTC), with the concurrence of the Assistant Attorney General for the Antitrust Division, to amend existing regulations (part 802 of title 16, Code of Federal Regulations) to conform with the new aggregation rules. It also mandates the FTC to issue new rules regarding the form, documentary material, and information required for notification of residential property acquisitions, ensuring the agencies can effectively assess potential antitrust violations.