The House passed the 21st Century ROAD to Housing Act 396-13. However, the bill does not include regulations regarding rental housing.
The House of Representatives passed the 21st Century Road to Housing Act, leaving the ban on institutional investors in the chamber.
The House passed the bill 396-13, with all Republicans voting against the bill, who supported President Trump’s call to force institutional investors to sell pre-built properties after seven years. President Trump said on Truth Social that the ban would make “housing belong to people, not businesses.”
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Still, given that less than 1% of housing inventory is held by institutional investors, the provision remains under scrutiny for potential loopholes and whether it will materially improve affordability.
California Representative Maxine Waters (D) and House Speaker Mike Johnson (R-Louisiana) praised the law’s passage, saying it contains “necessary housing reforms” that will improve housing affordability for millions of households.
“This House amendment on necessary housing reform retains more than 90% of the Senate bill while strengthening it by adding a number of key Democratic-led housing and community banking provisions passed by the House,” Waters said Tuesday. “As a result, we will provide more relief and support to millions of families and communities across the country.”
The National Association of Realtors praised the House for passing the legislation, calling it “one of the most important bipartisan housing policies” in decades.
Shannon McGahn
“This bill reflects a growing bipartisan consensus that the nation needs bold action to expand housing inventory, improve affordability, and create more pathways to homeownership and rental opportunity,” NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn said in an emailed statement. “Specifically, this amended bill will provide communities with new resources and best practices to modernize zoning and increase supply, streamline federal permitting, and expand financing options for manufactured and rural housing.”
“This bill also modernizes important programs, including: [the Community Development Block Grant] and [the HOME Investment Partnerships Program] “We will strengthen local housing investment, improve credit access for homebuyers, and help veterans maximize their VA mortgage benefits,” she added.
The National Association of Home Builders was particularly pleased with the removal of regulations regarding rental housing communities, saying the provisions exacerbated inventory problems.
“The NAHB was approved by the House of Representatives with strong bipartisan support to amend the 21st Century R.O.A.D. We applaud the overwhelming approval of the Housing Act. This package, led by House Financial Services Committee Chairman French Hill and Ranking Member Maxine Waters, eliminates forced sale provisions for rental housing that would have reduced supply, increases multifamily loan limits and benchmarks to encourage new apartment development, and provides meaningful relief to community banks,” NAHB Chairman Bill Owens said in a written statement.
McGahn and Owens both ended their statement with a plea to the Senate, saying the bill should quickly pass the Senate so President Trump can sign it into law.
Johnson said the House and Senate “continue to work closely” to pass the legislation, which he said would happen “in a very short period of time.” Prime Minister Boris Johnson may be making a promise he cannot keep, as powerful members of the House of Lords still support keeping regulations for institutional investors in place.
Sen. Elizabeth Warren (D-Mass.) told The Hill: “The changes to the provisions that Donald Trump specifically requested, specifically supported, and passed in the Senate 89-10 are nothing more than an attempt to kill the entire housing bill.”
Email Marian McPherson
