In 2026, the Trump administration and Congress have emphasized expanding access to homeownership for individuals and families, with a particular focus on limiting the role of large institutional investors in the single-family housing market, as discussed in our January and March 2026 GT Alerts. As part of that initiative, the Senate passed a version of the 21st Century ROAD to Housing Act (the “Act”) in March. On May 20, 2026, the House of Representatives passed its own version of the Act through H. Res. 1299, which retains the institutional investor prohibition in the Senate bill but departs from it in several other respects. This GT Alert details the key provisions of the House-passed version, with a particular focus on how it compares to the Senate bill.
What Changes Did the House Make?
The House version of the Act removed the seven-year resale requirement for certain excepted purchases. Under the Senate version, large institutional investors would be required to sell certain excepted purchases, including build-to-rent homes, within seven years. The House version does not contain any such resale requirement.
The House version would also establish a renter outreach resource to assist people renting properties owned by large institutional investors in reporting disputes and potential violations of federal law. Large institutional investors would also be required to comply with annual notification requirements, which would include reporting their status, as well as the number and location of homes under their control, to the Secretary of Housing and Urban Development. Failure to comply with the Act would result in civil penalties of $1,000,000 per violation or three times the purchase price of the property involved — whichever is greater.
Commonalities Between the House and Senate Versions of the Act
Both the House and Senate versions of the Act would establish a prohibition on the purchase of single-family homes by large institutional investors. Three key terms central to that prohibition are defined as follows:
- Large Institutional Investor: an investment fund, corporation, general or limited partnership, limited liability company, joint venture, association, or other for-profit legal entity that: (i) is engaged, in whole or in part, in the business of investing in, owning, renting, managing, or holding single-family homes; and (ii) alone or in concert with one or more other entities, beginning after the date of enactment of the Act, directly or indirectly has investment control of not less than 350 single-family homes in the aggregate, not including any single-family home purchased in an “excepted purchase” made after the date of enactment.
- Single-Family Home: a structure that contains two or fewer dwelling units, each intended for residential occupancy by a single household. The definition excludes manufactured homes as defined under the National Manufactured Housing Construction and Safety Standards Act of 1974.
- Purchase: any purchase, transfer, or other acquisition of a single-family home, including through mergers, acquisitions, construction, foreclosures, or bulk purchases, whether or not for cash consideration.
For both versions of the Act, the prohibition would only apply to purchases made after the effective date, 180 days after enactment. This means that investors would not be required to divest homes acquired before that date.
However, the Act would not prohibit all purchases by large institutional investors. Both versions of the Act carve out the same categories of exceptions from the prohibition. The key exceptions are detailed below:
- Newly Constructed, Renovated, or Rental Conversion Homes for Sale (Subparagraph A): Purchases of newly constructed, renovated, or rental conversion homes for sale, provided the home is not rented pending sale.
- Build-to-Rent Programs (Subparagraph B): Purchases of newly constructed homes to be managed as rental properties under a build-to-rent program.
- Renovate-to-Rent Programs (Subparagraph C): Purchases under a renovate-to-rent program.
- Homeownership Programs (Subparagraph D): Purchases pursuant to a qualifying homeownership program that includes rent-to-own features, opt-in positive rent reporting to consumer reporting agencies, and meaningful financial support from the investor toward the renter’s purchase of the home.
- Programs to Boost Homeownership (Subparagraph E): Purchases under a qualifying program that includes opt-in positive rent reporting, a right of first refusal, and a 30-day “first look” period for the renter.
- Purchases from Other Large Institutional Investors (Subparagraph H): Purchases from another large institutional investor that owned the home on the date of enactment or purchased it in compliance with the Act.
- Purchases from Non-Covered Investors Within Two Years of the Act’s Effective Date (Subparagraph I): Purchases from an investor not covered under the Act, provided the purchase occurs within two years of the Act’s effective date.
- Age-Restricted Communities (Subparagraph J): Purchases of homes intended for communities where one or more household members are 55 or older.
What’s Next?
The House and Senate versions must now be reconciled with one another before the Act can be enacted into law. The final form of the legislation may differ materially from what is described throughout this GT Alert.