"End Hedge Fund Control of New Jersey Homes Act"; imposes tax on certain investment purchases of certain residential properties.

S 1516, the "End Hedge Fund Control of New Jersey Homes Act," would impose a 50% tax on hedge funds managing $50 million or more in pooled investor assets when purchasing single-family or small multi-family homes (1-4 units) in New Jersey. It includes exemptions for properties used as primary residences, foreclosed homes, or those built with public funding, and sets annual ownership limits that gradually decrease over five years (e.g., hedge funds could own 90% of current holdings in year one, dropping to 50% by year five). The tax applies to acquisitions after the bill’s effective date, with the Division of Taxation requiring reporting to enforce compliance. This bill directly affects large investment entities managing residential property portfolios, not individual homeowners or small landlords.