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.
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.
