A proposed bill generating buzz is seeking to attract foreign money to help jump start the housing market. Introduced by United States Senators Charles Schumer (D-N.Y.) and Mike Lee (R-Utah), the legislation uses the carrot of a visa.

The Senators explained that the United States is a place many foreign nationals, particularly those from Asia and Canada, would like to live. Many investors from Canada have been purchasing recently built new homes in Dallas, Phoenix, and Tallahassee, to name a few cities, that have fallen in to foreclosure. The legislation is designed to let that happen, but at a significant financial price. To be eligible, the prospective homeowner would have to purchase a primary residence costing a minimum of $250,000 and spend a total of $500,000 on residential properties. All the purchases must be in cash—mortgages or home equity loans would be prohibited. In addition, the buyer would have to pay more than the home’s most recent appraised value.

The foreign buyer would have to reside in the house for at least six months out of the year and they would be required to pay income taxes to the IRS on any foreign earnings. If the homeowner sells the house, they would no longer be eligible for the temporary visa.

While the buyer could bring their husband or wife and any minor children, they would still have to apply for a work visa to be employed here. And nobody in the family would be allowed to receive Medicaid, Medicare or Social Security benefits.

The bill is gaining bipartisan support among people such as financial guru Warren Buffett, who has long urged attracting foreign investment as a way to bolster the national economy. However, this proposal would be a particular boon for states like California and Florida, which are already highly popular destinations, especially among visiting Chinese.

The proposal builds on an existing trend. From April 1, 2010 to March 31, 2011, residential sales to foreigners and recent immigrants came to $82 billion, an increase of 24 percent year to year. Of that, California accounted for nearly two billion of that increase, second only to Florida.

Broker Sandra Miller says: “California, Florida, New York, Colorado, Hawaii and Texas new homes and resale homes will see a huge increase in demand.”