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21st Century ROAD to Housing Act Prohibition on Large Institutional Investor Purchases of Single-Family Homes
Plain English Summary
The Department of the Treasury is proposing new rules that will prevent large institutional investors from buying single-family homes. This is part of the 21st Century ROAD to Housing Act. The new rules will explain key terms and exceptions related to this ban, making it easier for everyone involved to understand how the law will work. Insurance agents should stay informed about these changes as they may impact the housing market and related insurance products.
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The Department of the Treasury (Treasury) is issuing this proposed rule to carry out the purposes of section 1001 of the 21st Century ROAD to Housing Act (the Act or the ROAD Act). Section 1001 of the ROAD Act prohibits large institutional investors from purchasing single-family homes, subject to certain exceptions. The proposed rule would clarify certain terms relevant to those restrictions, including "large institutional investor"; clarify the application of certain exceptions from the statutory prohibition; and clarify the statutory enforcement mechanism. The proposed rule is intended to provide clarity to market participants and other stakeholders on the application of the statute before the effective date of the ROAD Act.