House Axes Build-to-Rent Provision from Amended Senate Bill

The fight over a bipartisan housing bill — and a controversial provision chilling the build-to-rent sector — neared a crescendo this week as the House of Representatives released its amended text.

Late Wednesday, lawmakers in the House released the final text on its amended version of the Senate’s 21st Century ROAD to Housing Act, Politico reported. A floor vote on the bill is scheduled for next week.

There are pros and cons for the real estate industry in the House’s amended legislation. Restrictions on institutional investors in the single-family housing market remain, though the definition of what qualifies as such a home was narrowed to exclude manufactured housing and homes renovated to be sold.

In a potential victory for the built-to-rent industry, however, the House eliminated the provision that investors would have to sell rental homes within seven years of construction. Since its inclusion, that provision has already scared away investment and essentially frozen activity in the sector.

Build-to-rent players argued the industry provides housing options for those ready to move into local communities and bigger spaces without the burdensome costs associated with homeownership today.

The victory in the text amendment could prove to be hollow if the Senate doesn’t get on board. When the two legislative bodies put forth their own individual bills, the Senate’s included the provision with the seven-year sale requirement, but the House’s didn’t. More than 75 members of the House of Representatives signed a letter calling for the revision or elimination of the seven-year sale provision.

Donald Trump’s administration has previously pushed for the House to pass the Senate’s bill the way it was written.

The House is seeking to pass its amended bill under fast-track rules that would curtail debate, prevent further amendments on the floor and necessitate a two-thirds majority.

— Holden Walter-Warner