Consumer Watchdog Urges Congress to Pass Housing Bill, Warns Harmful Investor Restrictions Must Be Revisited

FOR IMMEDIATE RELEASE

Contact: Kara Zupkus (224) 456-0257

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) urged Congress to pass the 21st Century ROAD to Housing Act. While the bill marks a meaningful improvement over the past versions, TPA warned lawmakers that its remaining restrictions on large institutional investors purchasing additional single-family homes are still misguided and should be revisited.

Ross Marchand, Executive Director of TPA, offered the following comment:

“The 21st Century ROAD to Housing Act isn’t perfect, but Congress should pass it. The bill eliminates harmful forced-sale requirements on large institutional investors and preserves provisions allowing those investors to purchase certain single-family housing. America’s housing problem is, first and foremost, a supply problem. Families are being priced out of home ownership because too few homes are being built, and lawmakers should be judged by whether they make it easier or harder to bring new housing to market.

“Congress deserves credit for keeping the worst Senate proposal out of the bill. A forced seven-year divestiture mandate on certain single-family rental homes owned by large institutional investors would have chilled investment in build-to-rent and renovate-to-rent homes, discouraged new construction, and reduced rental options for families that cannot afford to buy a house—the very families lawmakers claim to be helping. Removing that provision was a meaningful win for American households.

“But Congress should not pretend that the remaining restrictions on large institutional investors are good housing policy. Institutional investors own less than 1 percent of the total U.S. single-family housing stock, while local land-use restrictions, permitting delays, and costly regulations remain major barriers to affordability. Punishing the investors will neither streamline permitting and loosen zoning nor lower construction costs. The country needs more builders, renovators, and long-term investors willing to finance housing—not fewer.

“Lawmakers should also be wary of provisions that expand federal involvement through new grant programs, funding formulas, and greater HUD discretion. Washington cannot spend or centrally manage its way out of a housing supply largely tied up by local red tape.

“Still, the bill before Congress moves housing policy in a more constructive direction–– away from provisions that would have chilled investment in new rental housing and toward policies that expand supply. The House and Senate should pass this legislation immediately and continue the hard work of removing barriers to construction and allowing the market to deliver more homes for American families.”

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The Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis, and dissemination of information on the government’s impact on the economy.