Congress is nearing approval of a housing bill that would require owners of build-to-rent residential communities to sell their properties within seven years. The Senate voted 89 to 9 to end debate on the legislation, paving the way for a final vote in the near future.
The proposal combines provisions from the House version with elements of an earlier Senate bill that stalled last year. It also restricts institutional investors who own 350 or more single-family homes from purchasing additional homes intended for rental purposes.
President Donald Trump encouraged the inclusion of these restrictions after introducing the idea during his State of the Union address. The bill still needs reconciliation between the House and Senate versions before being sent to Trump for signature.
He supports limiting institutional investment in housing, although he previously signed an order on the issue that excluded owners of build-to-rent housing communities.
The new provision would require large investors who buy or build homes for rent to sell them within seven years and would give tenants a 30-day right of first purchase. Penalties would be imposed on those who fail to comply. The White House announced its support for the legislation after it was introduced.
