The build-to-rent industry is on the edge of winning a contentious battle on Capitol Hill that threatened the business model.
Bisnow/Jon Banister
After weeks of debate and deadlock, provisions that would have forced BTR operators to sell properties after seven years of ownership, among other restrictions, have been stripped from an amended version of the 21st Century Road to Housing Act released by senior lawmakers in the House of Representatives late Wednesday night.
House leadership is hoping broad bipartisan support will get the bill through the chamber in a vote next week under suspension of rules, a procedure that limits debate but requires a two-thirds majority to pass, Politico reported. If it passes, the compromise bill would still have to go back to the Senate for final approval.
President Donald Trump put pressure on the House to pass the legislation earlier this week, saying in a social media post that “The American Dream of Homeownership is under attack.”
The BTR restrictions were introduced into the Senate’s version of the bill in March, setting off a furious lobbying effort from BTR operators and affordable housing advocates who argued that an effective ban on the business model would be bad for housing supply.
The addition of the amendments to the bill was enough to stifle activity in the sector in recent months.
The updated bill would also change the definition of a single-family home to exclude manufactured housing and renovated homes for sale, an edit that could open the door for large institutional purchases of some types of housing.
Private equity firms and other investors with large portfolios will be able to continue acquiring some types of housing and the updated bill removes any forced sale provisions and puts no cap on holdings.
This is a developing story.
