This bill, titled the Affordable Housing and Homeownership Protection Act of 2026, establishes a new federal tax on the purchase of single-family homes by certain large investors. The tax aims to curb investor speculation in the housing market and support affordable housing. The tax rate is tiered, with a 1 percent levy for medium-sized investors owning 15-25 homes, 3 percent for large investors owning 26-100 homes, and 5 percent for giant investors owning over 100 homes. Certain entities are exempt from this tax, including non-profit affordable housing organizations, state and local governments, and public housing authorities. The bill includes aggregation rules to prevent investors from circumventing the tax by dividing their holdings among related entities. All revenues collected from this new tax will be dedicated to affordable housing programs, with 65 percent directed to the Housing Trust Fund and 35 percent to the Capital Magnet Fund . Additionally, the bill amends the Housing Trust Fund's allocation formula for small states, changing the minimum from a fixed dollar amount to a percentage of available funds.