Housing Flow, Reality Alignment, and Civic Stewardship Act:

This Act establishes a residential housing framework that:

1. preserves free asset pricing and voluntary exchange; and
    
2. regulates long-term residential rental extraction where participation is compulsory and exit is constrained, through eligibility, alignment, disclosure, and stabilization mechanisms.
    

This Act applies to all Forced Residential Use housing, regardless of building size or density, unless expressly excluded.

For the purposes of this Act:

• Forced Residential Use (FRU): any residential occupancy of thirty (30) days or more.
   
• Voluntary Residential Use: short-term, recreational, tourism, or transient lodging.
   
• Short-Term Rental (STR): occupancy of less than 30 consecutive days; deemed commercial/hospitality use.
   
• Dwelling Unit: a residential space intended for long-term habitation.
   
• Self-Contained Unit: a dwelling unit with a private kitchen and private bathroom.
   
• Low-Density Structure: a structure containing five (5) or fewer dwelling units.
   
• High-Density Structure: a structure containing six (6) or more dwelling units.
   
• Natural Citizen: a natural person holding citizenship under applicable law.
   
• Non-Natural Entity: corporations, REITs, trusts, funds, partnerships, or similar legal entities.
   
• Beneficial Ownership Interest: any arrangement conferring direct or indirect economic control or exposure.
   
• Economic Region: an administratively defined regional unit established by regulation.
   
• Regional Income Baseline (RIB): the income anchor defined in Article III.
   
• Quality Score (QS): a professionally determined score from 0–100, with a luxury extension to 115.
   
• Productive Value Metric (PVM): a tax-integration metric derived from the same appraisal record as QS.
   
• Residential Rental Income: any consideration exchanged for residential occupancy, monetary or otherwise.
   
• Condominium Unit: a unit governed by a condominium/strata ownership agreement.
   

• Owner-occupied condominium units are excluded from this Act.
   
• Rented condominium units constitute FRU and are subject to this Act using the high-density appraisal instrument.
   

STRs are excluded from this Act and are governed under commercial, tourism, or hospitality regulation.

Any arrangement whose primary effect is to evade eligibility, alignment, disclosure, or enforcement shall be treated according to its economic substance.

Any residential unit rented for 30 days or more is Forced Residential Use and subject to this Act.

Density modifies how constraints apply, not whether they apply.

Ownership does not automatically confer the right to operate FRU rentals.

For FRU rentals in low-density structures:

• rental operation is reserved to Natural Citizens.
   

A Natural Citizen may not hold beneficial interests in more than four (4) low-density FRU rental properties per Economic Region.

Non-citizens and non-natural entities may not derive residential rental income from low-density FRU properties.

For FRU rentals in high-density structures:

• rental operation is permitted to citizens and entities,
   
• ownership caps do not apply,
   
• all FRU alignment, appraisal, registry, and tax rules apply.
   

Non-natural entities may temporarily hold low-density property for development, rehabilitation, renovation, or resale, without rental income, subject to regulation.

Rental income from excess low-density holdings is surtaxed:

• 5th property: 50%
   
• 6th property: 100%
   
• 7th+: 200%
   

A property is misaligned where rents exceed lawful ceilings and/or debt was underwritten on unlawful rent assumptions.

The owner must elect one resolution path:

1. Sale
    
2. Schedule Alignment (Glide Path)
    
3. Public Realignment (Debt Interposition)
    

Sale at any mutually agreed price is always permitted and serves as the baseline counterfactual.

Owners may apply for a Schedule Alignment Order allowing rents to glide downward to lawful ceilings over a defined period.

A Schedule Alignment must specify:

• current rent,
   
• lawful ceiling rent,
   
• annual reduction schedule,
   
• prohibition on rent increases during the schedule.
   

Upon vacancy, new tenancy rent must jump immediately to a point further along the schedule than occupied units.

Owners may apply for public debt interposition where aligned rents cannot service existing debt.

Schedule Alignment and Public Interposition are not entitlements.
Approval requires a documented cost–benefit analysis, comparing the public outcome of intervention against sale.

If approved:

• public authority purchases mortgage principal,
   
• issues replacement mortgage based on aligned rents,
   
• lender is made whole on principal,
   
• owner equity is not guaranteed.
   

RIB equals the lower of regional median or average household income, excluding the top 3% of earners.

All FRU units must have a current QS determined by licensed appraisers.

Appraisals require photos, measurements, energy data, maintenance history, and neighbourhood verification.

QS derives from a multi-axis instrument including:

• habitability,
   
• layout and size efficiency,
   
• energy/operating burden,
   
• maintenance/lifecycle,
   
• neighbourhood access,
   
• amenities and services.
   

Separate instruments apply for low- and high-density structures; both feed the same rent mapping.

• Base: 0–100
   
• Luxury extension: 100–115 (rare, verified excellence)
   

• 0–100 → 0–30% of RIB
   
• 100–115 → up to 45% of RIB
  Absolute cap: 45%.
   

Purchase price, debt service, or scarcity cannot justify exceeding rent ceilings.

Penalties of 1.5×–5× overcharge; 50% to tenant, 50% to Regional Dividend Fund.

No restriction on purchase price.

Mortgage principal for FRU acquisition capped at 3.5× verified net local income.

HQS governs priority in public or programmatic dispositions.

• Years 1–10: civic repurchase option
   
• Years 10–25: de-escalating capital gains surtax
   
• Year 25+: full alienability
   

QS generates a PVM reflecting durability, efficiency, and civic usefulness.

Municipal tax partially indexed to PVM.

Registry discloses ownership, FRU status, QS, and rent history.

Standardized receipts required.

Verified compliant rent is tax-deductible or creditable.

Surtaxes and penalties fund per-capita regional dividends.

Audit, penalties, suspension, and compulsory remedies.

Mortgage interest deductible for compliant operations.

No dual rent + interest deduction.

Compliant FRU operations may receive reduced or exempt capital gains on produced value; non-compliance triggers clawback.

Professional property management is a regulated service, not ownership.

Managers must be licensed, audited, and publicly registered.

Managers may not share in rental yield or act as de facto landlords.

• Smallest regions: max 50% of FRU units managed by one firm.
   
• Larger regions: allowable share decreases with population, per regulation.
   

Affiliates, nominees, and white-label arrangements count toward caps.

Regulations define instruments, schedules, CBA templates, lending authority rules, and concentration formulas.

Standard transition window: 18 months.

Invalid provisions do not void the remainder.

This Act does not abolish markets.
It re-aligns extraction with reality, channels capital toward regional belief rather than necessity, and professionalizes stewardship without consolidating power.

It is a complete counterfactual — not a demand, but a fully specified alternative capable of standing or falling on its own internal logic.