"That provision, Section 901, would ban institutional investors that own 350 or more single-family homes from purchasing additional single-family properties, other than manufactured housing. On a more controversial note, while it would provide an exemption for build-to-rent (BTR) communities, it would mandate that new BTR communities be sold to individual homeowners within seven years. Industry stakeholders say that the uncertainty caused by Section 901 has largely frozen capital flow into new BTR construction."
"If it passes into law, these stakeholders warn that Section 901 would essentially kill the BTR industry as we know it and reduce rental supply, therefore pushing up rents. Opposition to this provision among members of the House is a key reason why the legislation has stalled. In April, a bipartisan group of 76 representatives, specifically the Real Estate Caucus and the Build America Caucus, signed a letter urging House leadership to remove or substantially alter Section 901."
"Representatives from organizations that advocate on behalf of the BTR industry told HousingWire's The Builder's Daily that most of their advocacy efforts have been focused on the House. Penetrating the Senate has been much harder, as many Senators don't want to revisit their bill and make changes. Politico reported last week that Trump privately raised concerns over Section 901, indicating that he would like to see a carve-out for the BTR industry."
"According to Politico, he was close to sending out a post voicing his objections to the provision, but he ultimately held off. Trump didn't include any of these objections in last night's post, in which he seemed to throw his support behind the U.S. Senate's version of the bill. Also, in my speech, I called for Congress to save the American Dream of Homeownership, and ban these purchas"
A housing bill has stalled for two months due to a controversial Senate provision, Section 901. The provision would ban institutional investors owning 350 or more single-family homes from buying additional single-family properties, except manufactured housing. It would exempt build-to-rent communities but require that new build-to-rent communities be sold to individual homeowners within seven years. Industry stakeholders say the uncertainty has frozen capital flows into new build-to-rent construction. If enacted, they warn it would effectively end the build-to-rent model and reduce rental supply, increasing rents. House opposition to Section 901 is a key reason for the delay, and a bipartisan group of 76 representatives urged removal or major alteration of the provision.
#housing-policy #build-to-rent-btr #institutional-investors #legislation-stalled #rental-supply-and-rents
Read at www.housingwire.com
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