News Type: Roundtable Weekly

Trump Proposes Restricting Institutional Investment in Single-Family Housing

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President Donald Trump on Wednesday said he would move to ban “large institutional investors” from purchasing single-family homes, framing the proposal as part of a broader push to improve housing affordability. (Washington Post | CNBC, Jan. 7)

State of Play

  • “I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations,” Trump wrote in a post on Truth Social. (Bloomberg, Jan. 8)
  • He indicated plans to discuss the issue at the World Economic Forum in Davos, Switzerland, later this month. (WSJ, Jan. 7)
  • The White House did not specify what executive actions, if any, would be taken, nor how it would define “large institutional investors.”
  • As currently described, the proposal would apply only to future acquisitions and would not require existing owners to divest their single-family rental (SFR) portfolios. (GlobeSt., Jan. 8)
  • Codifying a ban would require clear statutory language passed by Congress and signed into law—raising complex questions around thresholds, exemptions, and enforcement.
  • Legal challenges would likely follow, including claims related to takings, equal protection, and interstate commerce. Absent congressional authorization, the executive branch lacks clear authority to impose such a restriction solely through regulation. (Propmodo, Jan. 8)
  • Former House Financial Services Committee Chair Patrick McHenry said on Bloomberg on Thursday that housing affordability challenges are driven largely by state and local land-use and regulatory barriers, noting that institutional investors account for only a small share of the housing market. (Bloomberg, Jan. 8)
  • Also this week, Trump wrote on Truth Social that he is directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to address the national housing affordability crisis. Federal Housing Finance Director Bill Pulte said in an interview that Fannie and Freddie Mac will carry out the president’s directive by purchasing $200 billion in mortgage-backed securities from the public market. (Politico | Bloomberg, Jan. 9)

What the Data Shows

GAO Report
  • Research consistently finds that housing affordability pressures stem primarily from chronic supply shortages, high construction costs, and elevated mortgage rates—not institutional ownership levels.
  • According to SFR Analytics, the top 24 SFR owners control just over 520,000 homes—about 3.5% of rental homes and less than 1% of the total single-family housing stock—underscoring the limited market impact of large investors. (Bloomberg, Jan. 7)
  • Single-family rentals expanded after the Great Financial Crisis in 2008-2009 as investors helped absorb foreclosures, stabilize neighborhoods, and provide rental housing for households unable to buy.  (Federal Reserve Bank of St. Louis, Oct. 2025)
  • A 2024 Government Accountability Office (GAO) report found that large institutional investment expanded rental-housing options, helped stabilize neighborhoods after the financial crisis, and improved access to quality communities for low- and middle-income households. (GAO Report Highlights | Full GAO Report) (Roundtable Weekly, June 2024)
  • The GAO study also found that large-scale SFR showed that many working families desire the space provided by single-family homes, but may have low credit scores and otherwise can’t afford to buy them. Renting is commonly their best option for moving into better neighborhoods and school districts.
  • Another study out of UNC Charlotte, released in May 2024, finds that children from low- and moderate-income households see improved achievements in school when they rent single-family homes in neighborhoods where they cannot afford to buy.  (UNC Study Highlights | Full UNC Report, 2024)
  • An August 2025 report from the American Enterprise Institute found that institutional investors are not a primary driver of housing unaffordability, noting that housing shortages stem largely from restrictive zoning, limited new construction, and inflationary pressures. (American Enterprise Institute Report, Aug. 2025)
  • Stephen Scherr, co-president of Pretium Partners, which owns Progress Residential (RER member) one of the nation’s largest SFR operators, said on CNBC today that institutional investors help expand housing supply by de-risking large developments through purchase commitments that enable projects to move forward. He added that many renters they serve are not mortgage-eligible and use renting as a pathway to eventual homeownership. (CNBC, Jan. 9)

Roundtable View

  • Expanding the supply of housing across the geographic and economic spectrum is essential for the nation’s economic vitality.
  • Large-scale SFR investments have helped revitalize distressed properties and communities, contributing to economic growth and stability.
  • The Real Estate Roundtable (RER) has consistently emphasized that restricting capital will not solve the affordability crisis, and that increasing housing supply is the most effective path forward.
  • RER President and CEO Jeffrey DeBoer said: “Access to affordable housing is central to the American Dream, a dream that for some families means renting a home and for others means owning a home. For more than a decade, our nation’s supply of both owner-occupied and rental housing has, for a variety of reasons, not kept up with demand. This gap between supply and demand is the true cause of today’s housing crisis. The supply of housing must be increased.”
  • “This will require, among other actions, common sense policy reforms to local permitting and zoning regulations, recognizing in both national and local policy actions the reality of escalating labor and material costs and, importantly, the need to maintain and improve incentives to encourage the capital needed to develop, redevelop, and modernize the nation’s housing stock,” DeBoer said. “We work with all policymakers to advance initiatives that remove barriers to housing development, incentivize capital investment in housing, and help people achieve the American Dream.” 
  • In March 2025, RER and Nareit submitted comments to the Federal Trade Commission (FTC) in response to the agency’s inquiry into the impact of large-scale SFR operators and institutional investors on home prices and rents. (Letter, March 2025)
  • The letter emphasized that institutional investors account for a small fraction of home purchases and play a limited, but constructive role in expanding supply, rather than driving affordability challenges. (Roundtable Weekly, March 2025)
  • This week, RER member Sean Dobson (Chairman, CEO & CIO, Amherst) said restricting investment would not improve affordability. “Banning investors from putting capital into the housing market is not going to make affordability any better,” Dobson said during an appearance on Wednesday on Bloomberg Markets. (Bloomberg, Jan. 7)

Without meaningful steps to expand housing supply, proposals to limit institutional participation are unlikely to address the root causes of affordability pressures facing renters and would-be homebuyers, reinforcing RER’s ongoing work with policymakers and the administration to promote policies that increase housing supply and improve affordability.

Congressional Spending Package Preserves ENERGY STAR Funding

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A bipartisan, three-bill “minibus” appropriations package advanced by the House on Thursday preserves funding for ENERGY STAR, ensuring continued support through the end of the federal fiscal year for the voluntary public-private partnership focused on energy efficiency in buildings and appliances. (PoliticoPro, Jan. 8)

State of Play

  • The House passed the minibus on a bipartisan 397–28 vote. The package now heads to the Senate, which is expected to take up the measure as early as next week. (The Hill, Jan. 8)
  • The bill funds the Departments of Energy, Commerce, Interior, and Justice, along with water programs, the Environmental Protection Agency (EPA), and certain federal science initiatives through Sept. 30, the end of the current fiscal year.
  • The package reflects weeks of bicameral negotiations following last month’s deal on overall spending levels.
  • House Appropriations Chair Tom Cole (R- OK) defended the bills as the product of “bipartisan, bicameral consensus” and a member-driven process. (Politico, Jan. 9)
  • The final agreement largely rejected dramatic reductions sought by the White House last spring, opting instead for more targeted spending adjustments to energy and environmental programs. (PoliticoPro, Jan. 8)

Why It Matters

  • ENERGY STAR is a long-standing, market-based program that helps lower energy costs and supports “retrofit” investments for all commercial real estate asset classes.
  • The outcome builds on bipartisan actions last summer, when both House and Senate appropriators separately advanced bills supporting FY’26 ENERGY STAR funding. (Roundtable Weekly, July 25)
  • RER has long urged the “business case” to support the ENERGY STAR program. It is working with a coalition of multi-industry partners in the real estate, manufacturing, consumer tech, and retail sectors to explain to Congress and the administration why ENERGY STAR is critical to the national “energy dominance” agenda. (Roundtable Weekly, June 6; May 23).  

What’s Next

  • The minibus is expected to clear Congress before the current stopgap continuing resolution expires on Jan. 31.
  • Appropriators are preparing additional spending packages later this month, though several major funding bills—including Defense, Labor-HHS-Education, and Homeland Security have yet to be finalized.

These developments, alongside issues related to AI-driven power demand, grid reliability, and permitting reform, will be featured at RER’s upcoming Sustainability Policy Advisory Committee (SPAC) meeting on Jan. 21 in Washington, D.C.

OECD Carves Out U.S. Companies from Global Minimum Tax, Reducing Risk of Retaliatory Taxes on Foreign Real Estate Investors

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After months of negotiations, global tax talks produced an agreement at the Organization for Economic Co-operation and Development (OECD) that exempts U.S.-headquartered companies from Pillar Two’s global minimum tax and reduces the risk of retaliatory taxes that could have affected foreign investment in commercial real estate. (ABCNews, Jan. 6)

State of Play

  • Nearly 150 jurisdictions agreed to new Pillar Two guidance, including a long-sought “side-by-side” safe harbor that shields U.S. multinationals from key global minimum tax rules. U.S. companies will remain subject only to existing U.S. global minimum taxes. (Reuters, Jan. 6)
  • The Trump administration renegotiated the framework in June after congressional Republicans removed a proposed retaliatory tax—Section 899—from the One Big Beautiful Bill Act (OB3 Act).
  • The agreement formally recognizes U.S. tax sovereignty over the worldwide operations of American companies, while preserving other countries’ authority to tax business activity within their borders. (OECD Press Release, Jan. 5)
  • Senate Finance Chairman Mike Crapo and House Ways and Means Chairman Jason Smith praised the outcome but warned that Congress remains prepared to revive retaliatory tax measures if countries delay or fail to implement the agreement. (Sen. Crapo and Rep. Smith Press Release, Jan. 5)
  • They emphasized that Republicans rolled back those measures earlier this year only after the G7 publicly committed to respecting U.S. tax sovereignty—and said that warning “remains today” as implementation begins.
  • Treasury Secretary Scott Bessent called the agreement “a historic victory” that protects American workers and businesses from extraterritorial taxation. (Press Release, Jan. 5)

Why It Matters

  • During negotiations for the OB3 Act, RER and other industry groups warned that Section 899 would deter foreign investment, weaken capital formation, increase borrowing costs, and dampen property values. (Roundtable Weekly, Sept. 12)
  • Section 899 would have generated significant uncertainty for foreign real estate investors, with applicable tax rates potentially shifting year to year or across administrations.
  • The provision would have extended to a wide range of passive investors—including sovereign wealth funds, pension funds, high-net-worth individuals, and insurance companies—with the economic burden often falling on U.S. borrowers under typical loan covenants that shift tax-law risk to domestic parties.

RER’s Tax Policy Advisory Committee (TPAC) will review implications for U.S. real estate investment and global capital flows at the State of the Industry Meeting on Jan. 22, 2026, in Washington, D.C.

Roundtable Urges Second Circuit Court of Appeals to Preserve Employment Tax Exemption for Limited Partners

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The Real Estate Roundtable (RER) filed an amicus brief this week with the Second Circuit Court of Appeals in Soroban Capital Partners LP v. Commissioner, a case that challenges the IRS’s restrictive interpretation of the “limited partner exception” from self-employment (SECA) taxes under section 1402(a)(13) of the tax code. (Amicus Brief, Dec. 15)

Why It Matters

  • Income-producing real estate—rental housing, neighborhood shopping centers, office buildings, etc.—is predominantly owned and operated in partnership form. In 2022, there were over 2.2 million real estate partnerships in the United States, with nearly 9.6 million partners.
  • The Self-Employment Contributions Act (SECA) imposes Social Security and Medicare taxes on net earnings from self-employment. The SECA tax rate on earnings above $250,000 is 3.8%. While the tax applies to a broad range of trade or business income, Congress expressly exempted limited partners from SECA in the Social Security Amendments of 1977.
  • Legislative proposals and proposed regulations have unsuccessfully attempted to extend the 3.8% SECA tax or the 3.8% net investment income tax to limited partners.
  • The IRS has undertaken an aggressive effort to redefine what it means to be a limited partner by challenging taxpayers and litigating the issue in several cases before the Tax Court.

Roundtable View

  • Real estate partnerships have relied for decades on longstanding tax law as it relates to limited partners and the SECA exception.
  • In Soroban and related cases, the Tax Court has imposed a judge-made test and concluded contrary to decades of established state law that a limited partner must be a ‘passive investor,’ notes the RER amicus brief.
  • The Tax Court’s 2023 Soroban ruling wrongly introduced a federal “passivity” requirement that is unmoored from statute, legislative history, and Treasury’s own prior interpretations. However, limited partners have routinely provided business services to their partnerships without losing their limited liability status. (Roundtable Weekly, Sept. 12)
  • “A shift in the federal tax definition of a limited partner could alter underlying partnership economics, increase tax burdens, and create significant uncertainty for real estate and other pass-through businesses,” said RER President and CEO Jeffrey DeBoer. “Such changes need to go through Congress and withstand legislative scrutiny.”

Background

  • RER’s amicus brief was drafted by litigation counsel at Sullivan & Cromwell LLP, in consultation with RER’s Tax Policy Advisory Committee (TPAC). RER also filed an amicus brief in August
    with the First Circuit Court of Appeals in a related case, Denham Capital Management LP v. Commissioner. (Roundtable Weekly, Sept. 12)

Next Steps

The decision in any of the pending cases could have nationwide implications for how partnerships are treated under SECA. A ruling against the Tax Court’s passive investor test would reinforce state law’s central role in defining “limited partner” status.

Roundtable Urges IRS to Issue Transition Guidance for Opportunity Zones

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The Real Estate Roundtable (RER) submitted a comment letter this week, urging the Treasury Department and IRS to issue expedited guidance to ensure Opportunity Zone (OZ) investment continues uninterrupted in 2026 as the program transitions from Opportunity Zones 1.0 to the permanent Opportunity Zones 2.0 framework enacted in the One Big Beautiful Bill (OB3) Act. (Letter, Dec. 19)

Roundtable Advocacy

  • In a letter to IRS Chief Counsel (Acting) Kenneth Kies, RER called on the agency to issue a Revenue Procedure confirming that investments in existing Tax Cuts and Jobs Act (TCJA) qualified opportunity funds (“QOFs”) and qualified opportunity zone businesses (“QOZBs”) will continue to qualify for OZ benefits after zone designations lapse, provided the investments are consistent with the QOZB’s working capital plan.
  • RER warned that, absent clear transition rules, investors in 2026 will face uncertainty over whether to proceed with TCJA OZ projects or wait for new zone designations expected to take effect in 2027—risking a slowdown in capital deployment to distressed communities.
  • The OB3 Act made OZs permanent and expanded key incentives, but also raised questions about compliance testing, QOF asset requirements, and treatment of projects that span the transition period between expiring and newly designated zones.

Why It Matters

IRS building in Washington, DC
  • RER emphasized that OZs have mobilized more than $120 billion in private capital nationwide, supporting affordable and workforce housing, retail, mixed-use developments, and small-business growth in low-income communities.
  • Without timely IRS action, uncertainty could delay projects already underway, disrupt financing, and undermine the long-term policy goals Congress reinforced by making the program permanent.
  • RER urged the IRS to adopt a clear “safe harbor” allowing certain TCJA OZ projects to be treated as “grandfathered” for compliance purposes if their working capital plans contemplated development before zone designations expired and investments remain consistent with those plans.

Prompt administrative guidance is essential to prevent a policy gap in 2026 and keep capital, jobs, and housing investment flowing to the communities OZs were designed to serve. OZs will be discussed at the next in-person TPAC meeting at RER’s State of the Industry Meeting scheduled for Jan. 21-22, 2026.

House Committee Advances Roundtable-backed Housing Package and Flood Insurance Bill

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This week, the House Financial Services Committee (HFSC) advanced 20 bills during a two-day markup session—including the bipartisan Housing for the 21st Century Act (H.R. 6644), which contains numerous reforms championed by The Real Estate Roundtable (RER) and a coalition of national real estate and housing organizations. (Letter, Dec. 15)

Comment Letter Highlights

  • Ahead of the two-day markup session, RER and a coalition of 11 other housing, finance, and real estate groups sent a letter to HFSC Chair French Hill (R-AR), Ranking Member Maxine Waters (D-CA), and housing subcommittee leaders expressing support for the Housing for the 21st Century Act and the committee’s broader efforts to expand affordable housing. (Letter, Dec. 15)
  • The coalition commended the committee’s bipartisan approach and highlighted H.R. 6644 as a “meaningful step toward addressing one of the most urgent challenges facing our nation: expanding housing supply for both renters and homeowners and improving affordability for working families.”
  • The letter focused on key provisions of the HFSC’s bill, such as modernizing and streamlining federal housing programs, removing unnecessary federal requirements, expanding financing pathways, promoting manufactured housing as cost-effective solutions, and more.
  • The coalition also warned that housing affordability is driven by sustained underproduction, rising construction costs, regulatory delays, and outdated standards, and emphasized that no single policy change can address these pressures alone.

Housing for the 21st Century Act Advances

  • Co-sponsored by Chair Hill and Ranking Member Waters, the Housing for the 21st Century Act received near-unanimous support this week—with the Committee voting 50-1 for its passage.
  • The Housing for the 21st Century Act incorporates some elements of the bipartisan ROAD to Housing Act, which was approved by the Senate in October before stalling after House Republicans signaled they wanted more scope to advance their own housing legislation. (Roundtable Weekly, Dec. 12)
  • A key feature of the House’s bill is an update to the HOME Investment Partnerships Program aimed at reducing red tape and expanding eligibility.
  • The bill also streamlines environmental review rules and enhances oversight of housing providers, among a range of other reforms.  
  • Chair Hill called the bill “historic” and said that it will “get to the root of the housing affordability challenges our country has experienced for the last several years.” (Chair Hill Press Release, Dec. 17)
  • The measure is now expected to go to a House floor vote in early 2026. (Housing Wire, Dec. 17) 

NFIP Reauthorization Advances

  • Additionally, the HFSC advanced the NFIP Extension Act of 2026 (H.R. 5577) to reauthorize the National Flood Insurance Program through Sept. 30, 2026.
  • While lawmakers emphasized the need for long-term reform, there was broad consensus that avoiding a lapse is essential ahead of the program’s Jan. 19 expiration.
  • RER has consistently supported long-term NFIP authorization and program reform.

RER will continue to engage with policymakers in support of legislation that increases housing supply and ensures that property owners can access the insurance protection that they need from increasingly costly natural disasters.

SPEED Act Passes House, Setting Stage for Senate Permitting Talks

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The U.S. House of Representatives passed the bipartisan SPEED Act (H.R. 4776) on Thursday by a 221–196 vote, advancing legislation aimed at streamlining federal permitting reviews to accelerate energy and infrastructure development amid surging electricity demand and rising power costs. (Axios, Dec. 18)

State of Play

  • Sponsored by House Natural Resources Committee Chair Bruce Westerman (R-AR) and Rep. Jared Golden (D-ME), the SPEED Act would overhaul the National Environmental Policy Act (NEPA) by reducing duplicative reviews, curbing excessive litigation, and increasing certainty for large-scale grid improvements and other infrastructure development requiring federal approval.
  • The House’s passage of the SPEED Act marks a significant step in a broader congressional push to modernize permitting rules and address long-standing bottlenecks slowing investments in power generation, transmission, and distribution projects.
  • “For too long, America’s broken permitting process has stifled economic development and innovation,” Chair Westerman said following the vote. “This historic vote on the SPEED Act will fix the system by establishing the project certainty that’s currently lacking in the permitting process and allow America to build again.” (PoliticoPro, Dec. 18, Rep. Westerman Weekly Column, Dec. 19)
  • 11 Democratic votes in favor of the measure demonstrated bipartisan momentum heading into Senate consideration.
  • In the Senate, key negotiators acknowledged the House GOP’s internal challenges but welcomed the bill’s passage. Senate Environment and Public Works Chair Shelley Moore Capito (R-WV) said the House vote “will give us good momentum,” while Ranking Member Sheldon Whitehouse (D-RI) emphasized his focus on producing a bipartisan Senate bill. (PoliticoPro, Dec. 18)
  • The Trump administration has expressed support for congressional action on permitting reform, but has not taken a position on the SPEED ACT. (PoliticoPro, Dec. 8)

Roundtable Advocacy

  • Ahead of the procedural vote earlier in the week, The Real Estate Roundtable (RER) joined a broad business coalition led by the U.S. Chamber of Commerce in support of the SPEED Act. (Dec. 16 Letter)
  • RER also wrote to congressional leadership last week, urging passage of the bill, citing the need to strengthen grid reliability, lower energy costs, and keep pace with rapidly rising electricity demand. (Letter, Dec. 8)
  • In its letter, RER emphasized that the U.S. needs “as much electricity as possible, from as many sources as possible, delivered as quickly and cheaply as possible” to support economic growth, re-shore manufacturing, and maintain global competitiveness in artificial intelligence. (Roundtable Weekly, Dec. 12)

What’s Next

  • The bill now heads to the Senate, where it is expected to spur broad cross-committee negotiations involving the Energy and Natural Resources Committee and the Environment and Public Works Committee. (Axios, Dec. 18)
  • The House vote “doesn’t get any easier” for the SPEED Act to make it all the way through Congress, as the “political opening is extremely narrow” in the Senate. (Axios, Dec. 19)
  • The legislation faces opposition from some Senate Democrats who seek further protections to advance wind and solar development. At least seven Democrats would be needed to overcome a filibuster. (Bloomberg, Dec. 18)
  • Despite divisions, several Senate Democrats have signaled interest in crafting a permitting compromise capable of securing the 60 votes required for passage. (Axios, Dec. 18)

Permitting reform will be a featured topic at RER’s next all-member State of the Industry Meeting on Jan. 21–22, 2026, in Washington, D.C., as policymakers consider strategies to accelerate energy infrastructure and support long-term economic growth.

Roundtable Weekly Will Resume Publication on January 9, 2026

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The Roundtable’s policy news digest will resume publication on Friday, January 9, 2026.

Recent issues of Roundtable Weekly can be searched by keyword here.

Fed Cuts Rates Again Amid Split Outlook; Hearing Targets Capital Rules

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The Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points for the third straight meeting, lowering the federal funds target range to 3.50-3.75 percent. Fed Chair Jerome Powell emphasized that while policy is easing, the bar for additional reductions in early 2026 remains high.

Fed’s Decision

  • The Federal Open Market Committee (FOMC) vote was 9-3, with two policymakers preferring to hold rates steady and one seeking a deeper cut. (CNBC, Dec. 10)
  • Chair Powell said policy is “well positioned,” but stressed decisions are not on a preset path, citing mixed inflation signals and slowing but still resilient labor conditions. (Watch Press Conference)
  • The Chair noted that the latest projections show only one rate cut expected in 2026, signaling a potential pause in additional easing absent clearer labor and inflation trends.
  • Officials highlighted labor market softening as a key factor, with Chair Powell acknowledging it’s a “labor market that seems to have significant downside risks,“ even as inflation remains elevated.
  • He also expressed some optimism about growth, with the FOMC raising its outlook for 2026 GDP by half a percentage point, to 2.3 percent. (CNBC, Dec. 10)

Housing and CRE Outlook

  • Rate cuts alone won’t materially reprice CRE, as valuations and returns depend on multiple factors beyond monetary policy, and CRE has historically performed well even in higher-rate environments, industry analysts noted. (Connect CRE, Dec. 10)

  • Multifamily and industrial have already benefitted from the current rate environment, with multifamily development borrowing costs falling from 7.5-9 percent to ~6-7.25 percent and industrial cap rates expected to compress modestly. (Connect CRE, Dec. 10)

  • Commercial Mortgage-Backed Securities refinancing challenges remain acute, as lenders are unwilling to extend maturities without new borrower equity or substantive restructuring proposals. (Commercial Observer, Dec. 10)

Congressional Oversight & Capital Framework

  • At a House Financial Services Subcommittee hearing Thursday, witnesses largely urged regulators to calibrate the emerging Basel III Endgame proposal to support competitiveness, credit availability, and economic growth. (Watch Hearing)
  • Andrew Olmem (Partner, Mayer Brown) emphasized that capital decisions are policy choices: “Improperly calibrated requirements can reduce credit, raise borrowing costs, and slow wealth creation.”
  • GOP leaders on the subcommittee stressed the need for a tailored, data-driven framework that avoids the “gold-plated” standards identified by the Basel Committee.
  • Subcommittee Chair Andy Barr (R-KY) stated that the initial Basel III Endgame proposal was “deeply flawed” and pointed out that it has received bipartisan criticism. (Rep. Barr Press Release, Dec. 11)  

RER Advocacy

  • Thursday’s hearing was the latest in a series of recent steps policymakers have taken toward re-evaluating bank capital requirements.
  • Last week, RER and a coalition of leading business trade organizations encouraged prudential regulators to adopt requirements for large banks that support consumers, businesses, and the broader economy. (Roundtable Weekly, Dec. 5)

RER will continue to advocate policies that protect the safety and soundness of our financial system without harming credit flows and capital formation vital for CRE.   

House Introduces Bipartisan Housing Package

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The House Financial Services Committee introduced a bipartisan housing package, the Housing for the 21st Century Act on Thursday, aimed to streamline housing development and improve affordability by updating outdated programs, removing unnecessary federal requirements, and increasing local flexibility. (One-pager; Text of the bill; Section-by-Section)

Housing for the 21st Century Act

  • House Financial Services Chairman French Hill (R-AR), Ranking Member Maxine Waters (D-CA), Subcommittee on Housing and Insurance Chair Mike Flood (R-NE) (who will be speaking at the joint RECPAC/Research Committee meeting on Jan. 21), and Subcommittee on Housing and Insurance Ranking Member Emanuel Cleaver (D-MO) unveiled the bipartisan legislation Thursday, proposing targeted updates to HUD programs, expand manufactured and affordable housing, and modernize local and rural development tools.
  • Chairman Hill said, “Our goal is to chart a path forward toward greater development capacity and a simplified regulatory framework. We look forward to moving this bill through regular order and working with our Senate counterparts in the new year to get a bill signed into law that reflects ideas from both chambers and delivers real results for American families.” (Press Release, Dec. 11)
  • Subcommittee Chair Flood added, “As housing gets more expensive, the American Dream of homeownership is slipping away for working families. This package is the product of bipartisan work in the Financial Services Committee to address some of the core issues driving up the cost of housing.”
  • The committee plans to integrate aspects of the Senate’s Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 (S. 2651) with additional measures from the House Financial Services Committee.
  • One major distinction in the House bill is a provision to overhaul the HOME Investment Partnerships Program. (WashingtonExaminer, Dec. 11)

Senate – ROAD to Housing Act

  • The ROAD to Housing Act was ultimately excluded from the final text of the 2026 National Defense Authorization Act. (HousingWire, Dec. 8)
  • The bill incentivizes states and cities to boost housing supply by cutting red tape, streamlining federal inspections, and eliminating duplicative regulations. (Roundtable Weekly, Oct. 17, Aug. 1 )
  • The Senate’s bipartisan package advanced earlier this year with unanimous committee support in July and received full Senate approval in October, but House Republicans signaled they wanted more flexibility to advance their own housing legislation. (Multifamily Dive, Dec. 10)
  • Ranking Member Waters stated, “While I was disappointed ROAD was not included in the NDAA, there is clearly broad bipartisan support in both Chambers to advance housing legislation.”

The House Financial Services Committee intends to mark up its housing package next week, along with 20 other bills on the National Flood Insurance Program and community banking, among others. (PoliticoPro, Dec. 11)