Bipartisan Housing Bill Faces House Hurdle Over Investor Ownership Ban
Homes in suburban Chicago, April 26, 2023.
Brian Cassella | Tribune News Service | Getty Images
A major bipartisan housing affordability bill is on the verge of passing the Senate but is now expected to stall in the House, primarily due to a contentious provision that would ban large investors from buying single-family homes. The legislative path forward requires negotiation, according to House Republican leadership.
Rare Bipartisan Momentum Meets a Wall
The package has garnered unusual cross-aisle support in a deeply divided Congress. The House approved its version of the legislation in February by a overwhelming vote of 390-9. The Senate measure has also advanced with strong backing, securing more than 80 votes in procedural hurdles.
However, House Majority Leader Steve Scalise, R-La., signaled during a closed-door meeting of House Republican leaders this week that the Senate version will not be accepted without changes. According to three attendees who spoke on condition of anonymity, Scalise stated that if the Senate does not address concerns raised by House members and House Financial Services Committee Chair French Hill, R-Ark., the bill will head to a conference committee. That committee, composed of lawmakers from both chambers, is tasked with reconciling the two versions into a single bill.
“If the Senate thinks we’re gonna take this medicine, we’re gonna go to conference,” Scalise said, as reported by the attendees.
The Investor Ban Debate
The central point of contention is the Senate’s proposed ban on corporate ownership of single-family homes. The provision would prohibit companies from owning more than 350 such properties. An exception allows builders and renovators to exceed that limit if they agree to sell the additional homes to non-corporate buyers within seven years.
This language was added after former President Donald Trump publicly called for such a ban, a request that came too late to be included in the already-passed House bill.
During the House GOP meeting, several lawmakers raised specific concerns about the Senate’s approach, according to two attendees. One concern is that forcing companies to sell homes after less than a decade could reduce the flow of capital into new home construction, potentially exacerbating supply shortages. Another worry is that the rule could limit the flexibility of real estate agents and sellers to pursue optimal sale strategies.
Next Steps and Negotiation Timeline
Chairman Hill, who was not present at the meeting, later issued a statement confirming the lines of communication. “House lawmakers have communicated the concerns from our members to our Senate colleagues,” Hill said. “We look forward to working to achieve a bicameral success in housing policy that will benefit the American people with growing supply and lower construction costs.”
Senator Tim Scott, R-S.C., a key negotiator, expressed optimism about merging the bills. “Our bill is fantastic. Their bill is good,” Scott said. “Putting those two together, we have the bicameral approach to housing.”
Despite the optimism, Scalise’s prediction indicates that the legislation is now likely to undergo weeks, if not months, of negotiations in a conference committee before a final version can be passed by both chambers and sent to the president’s desk. The outcome will hinge on whether the House’s reservations about the investor ban can be reconciled with the Senate’s stance.
This article is based on reporting by CNBC, which cites original reporting from Tribune News Service and Getty Images.
