The House of Representatives updated key language Tuesday in the bipartisan housing legislation banning institutional investors from purchasing single-family homes, reverting much of it back to the Senate’s version of the bill.
The changes come amid a clash between the two chambers, with the House taking the Senate version of the 21st Century ROAD to Housing Act and updating it. One section in particular got pushback from some in the Senate, which was the part that banned institutional investors from buying single-family homes.
Recommended Stories
TRUMP BULLISH THAT HOUSING BILL WILL MAKE IT TO HIS DESK
In its amended version last week, the House left the institutional investor ban in but removed a provision that would require investors in build-to-rent homes to sell those houses within seven years. In addition, the House’s amended version contained a number of exceptions that would have allowed institutional investors to purchase more homes than they would have, all else equal, under the Senate’s version.
The latest update, which came through on Tuesday afternoon, still cuts the requirement to sell build-to-rent homes after seven years, but removes the other exceptions added last week entirely. Essentially, the institutional investor section is the Senate’s version, but with just the seven-year build-to-rent provision removed.
Prior to the Tuesday afternoon update, some opponents in the Senate had argued that the combined changes would allow private equity firms to outcompete families in the market more than the Senate’s version.
Housing experts argued that the seven-year build-to-rent provision would decrease the housing stock, and industry groups have come out hard against the proposal. The provision was heavily criticized by influential groups such as the National Association of Home Builders and the National Multifamily Housing Council.
The move shows that discussion over the bipartisan housing legislation has been ongoing between the House, the Senate, and the White House.
In addition to the section on institutional investors, the Tuesday update also makes changes to organized labor provisions in the legislation.
Earlier on Tuesday, the Washington Examiner spoke with President Donald Trump about the housing legislation. Trump expressed optimism about some form of the bill making its way to his desk.
TRUMP GOING TO LET WARSH ‘DO WHAT HE WANTS TO DO’ AT FED WITH INTEREST RATES
The Washington Examiner asked Trump if he supported the House’s version, which has the blessing of House leadership, including House Speaker Mike Johnson (R-LA).
“Well, I’m going to have to see what all the amendments are, but I support Mike Johnson,” Trump responded. “He’s great, doing a good job. So, let’s see what the amendments are.”
