A provision in the Senate’s ROAD to Housing Act has drawn opposition from the National Association of Home Builders (NAHB), according to Bloomberg. The group is concerned about a section of the bill related to President Donald Trump’s effort to ban institutional investors from the single-family housing market.
The investor ban was added to the Senate bill at the request of the White House, as noted by Sen. Tim Scott. Trump’s executive order on this issue included exemptions for investors who build or renovate homes intended for rent. However, these exemptions may be more limited than previously believed. Under the bill, investors would be required to sell homes—including those built or renovated specifically for renting—within seven years.
“This has been a long bipartisan process with a lot of positives for housing, and it’s unfortunate that this issue has been injected at the end into what’s otherwise been a very collaborative process,” said Ken Winger, chief advocacy officer at NAHB. He also expressed concerns that uncertainty around this provision could reduce financing options for such projects.
Neither Sen. Scott nor representatives from the White House responded to inquiries regarding NAHB’s stance.
The Senate bill advanced with strong support in a 90-8 procedural vote on Wednesday. A final vote is expected next week. If approved, the measure will need to be reconciled with the Housing for the 21st Century Act, which passed in the House of Representatives last month.
The investor ban was not included in the House version of the legislation, making its future uncertain as lawmakers work toward a final compromise between both chambers’ bills.
