The American Neighborhoods Protection Act of 2025 seeks to limit large-scale ownership of single-family residences by imposing an excise tax on certain entities. This legislation targets "covered taxpayers" who own more than 75 single-family residences, defined as properties with up to four dwelling units. For each residence exceeding this threshold, a tax of $10,000 is levied annually. Exemptions from this tax include non-profit organizations, mortgage note holders acquiring properties through foreclosure, and entities primarily engaged in construction or rehabilitation. The bill includes specific aggregation rules for related entities and a provision that counts residences sold to other large entities or multiple individuals as still owned by the seller for the taxable year, aiming to prevent circumvention. To ensure compliance, the Secretary is mandated to establish reporting requirements for purchasers and transferees, with a $50,000 penalty for non-compliance. All revenues collected from this excise tax will be deposited into a newly established Housing Trust Fund . This fund is dedicated to providing grants to State housing finance agencies. These grants will support new or existing programs offering down payment assistance to families purchasing homes. A key priority for these assistance programs is to help families acquire single-family residences that were sold or transferred by the very "covered taxpayers" subject to the excise tax. This mechanism aims to shift properties from large investors back into individual family ownership.