HART Act

Summary#

This bill, the HART Act, changes how premerger notifications under the Clayton Act apply to purchases of residential property. It defines "residential property," "investment rental property," and "place of short-term lodging." It treats all acquisitions of residential property by the same person within a single calendar year as a single acquisition for purposes of filing a premerger notification. The bill also narrows an existing exemption so transactions that include residential or investment rental property (including in a real estate investment trust) and are not solely for personal use are not exempt. The Federal Trade Commission, with the Antitrust Division of the Department of Justice, must update regulations (part 802 of title 16, CFR) and issue rules about the forms and documents needed for these aggregated residential property acquisitions.

What it means for you#

• If you buy residential properties, the bill would treat all purchases you make in the same calendar year as one combined acquisition for notification rules. That means you may need to file a premerger notification when your combined purchases meet the statutory thresholds.
• The change applies to multifamily housing, condominiums, manufactured homes, and single-family homes, and can include holdings by real estate investment trusts.
• Short-term lodging (hotels, motels, short-term rentals with nightly/weekly rates) is excluded from the residential property definition.

Expenses#

No publicly available information on estimated costs or budgetary effects. The bill requires the FTC, with DOJ concurrence, to amend regulations and issue rules, which will involve agency administrative work.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.