Summary: A memo from the White House to congressional leaders sets out a proposal to stop certain large-scale investors from purchasing additional single-family homes. The restriction would apply to investors who already hold more than 100 single-family properties, though exemptions are written into the plan for investors who either build new homes or undertake substantial renovations to make properties suitable for rental.
The memo, circulated to leaders on Thursday, lays out the specifics of the administration's proposal, according to a report that cited a copy of the document. Under the plan, investors whose portfolios exceed 100 single-family residences would be barred from buying more of those homes.
The administration has been actively lobbying Congress in recent weeks, urging lawmakers to insert the investor ban as an amendment into housing bills moving through both chambers. In the House, Republican lawmakers recently approved a new housing bill that did not adopt the proposed investor restriction. The Senate previously passed its own housing bill last fall and is negotiating a revised version to bring into alignment with the House measure.
Officials from the administration are now concentrating efforts on the Senate bill as the likely legislative vehicle to incorporate the investor purchase prohibition, according to the report. The White House plan, as described in the memo, provides carve-outs for investors who either build homes or perform heavy renovations specifically for rental purposes, exempting those activities from the purchase ban.
The proposal's future depends on the legislative reconciliation process between the House and Senate as members work to merge their respective housing bills. The House-approved bill did not include the investor limit, while the Senate's earlier passage and ongoing negotiations leave open the possibility that the White House's amendment could be attached as lawmakers attempt to reconcile differences.
Context provided in the memo - The memo circulated by the White House specifies the threshold for the proposed restriction (ownership of more than 100 single-family homes) and notes the exemptions for building or extensively renovating homes intended for rental. The administration has sought to have that restriction considered as an amendment to the housing legislation under consideration in both chambers.