A coalition of 76 members of the House of Representatives have called on their leadership to drop a providing from the Senate-passed 21st Century ROAD to Housing Act that would force corporate entities to sell their single-family build-to-rent (BTR) housing properties seven years after construction.
The representatives, who belong to the Real Estate Caucus and the Build America Caucus, called on House Speaker Mike Johnson and Minority Leader Hakeem Jeffries to remove Section 901 of the Senate bill, claiming it “would have far reaching and unintended consequences that run counter to the bill’s stated goal of expanding housing opportunity.”
The representatives cited a forecast from the Urban Institute warning the provision could “decrease the number of rental units built each year by at least 72,000.” They also argued the provision would “push out renters and destabilize housing for thousands of families nationwide. The bill’s requirements, including mandatory divestment timelines, would compel housing providers to sell properties, resulting in the forced displacement of renters who rely on these homes.”
Furthermore, the representatives argued the bill “would disproportionately harm middle-class and military families who rely on flexible, high-quality rental housing options.” They added the bill’s mandates could also “unintentionally restrict capital formation and investment in rental housing markets more broadly.”
“BTR communities provide access to neighborhoods with strong schools, employment opportunities, and community infrastructure, often in areas where traditional rental housing is limited,” the representatives wrote. “These communities are especially important for families who are not yet ready or able to purchase a home, including relocating workers and military families transitioning between duty stations. Restricting access to these housing options would reduce mobility, limit economic opportunity, and place additional strain on working families striving to achieve homeownership.”
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