Investor Home-Buying Ban Stalls Housing Affordability Bill

One of the largest housing affordability bills expected to pass the Senate this Thursday may face delays in the House. Lawmakers are concerned that banning large investors from buying single-family homes could create new problems. The proposal aims to control rising housing prices, but it has already sparked debate among policymakers.

At a House Republican retreat earlier this week, party leaders and committee chairs discussed the bill. During the meeting, Majority Leader Steve Scalise warned that the measure could stall due to differences between the House and Senate versions.

Scalise said the Senate must address concerns raised by House members and House Financial Services Chair French Hill. Otherwise, the bill may require further negotiations between the two chambers before it becomes law.

“If the Senate thinks we’re going to take this medicine, we’ll go to a conference committee,” Scalise said, according to three attendees who spoke anonymously about the closed-door meeting.

House and Senate Clash Over Housing Proposal

 The lawmakers of both houses make up a conference committee. Lawmakers in the conference committee work to resolve differences between bills approved by the House and the Senate. These negotiations usually happen when both chambers pass different versions of the same legislation.

The housing package has received unusual levels of bipartisan support in a seriously divided congress. The House version of the bill was passed in February by a close vote of 3909 to indicate a solid party support.

In the meantime, the Senate action has been proceeding by procedural votes. Over 80 senators support it. Nevertheless, the legislation continues to differ on certain provisions even with the high level of support.

The future Senate bill according to the views made by Scalise indicates that the bill might take weeks, or years, of debates before the final version is prepared to be passed.

Investor Home-Buying Ban Sparks Debate

 President Donald Trump urged the congress to enact housing affordability laws that do not only bar large investors and companies in the purchase of single-family homes.

Lawmakers received the request too late to include it in the House bill. Senators later introduced language that limits companies from owning more than 350 single-family homes.

the rule includes an exception for home builders and renovators. They can own more than 350 homes if they sell the extra properties to non-corporate buyers within seven years. In the meeting, various legislators raised their concerns. Critics fear that the rule would discourage companies to invest in new housing construction.

Read : Bluesky CEO Jay Graber Steps Back, Toni Schneider Takes Over

Lawmakers Seek Compromise on Housing Policy

One attendee raised concerns that forcing companies to sell homes in less than a decade could reduce investment in new housing projects. The attendee also warned that the rule might limit real estate agents’ ability to secure the best prices for sellers. This could affect negotiations in competitive housing markets.

French Hill, who was not present at the meeting, said House lawmakers have already shared these concerns with Senate colleagues. Hill added that lawmakers are eager to work together on a bicameral housing policy. The goal is to increase housing supply and lower construction costs.

Speaking on CNBC’s Squawk Box, Senate Banking Committee Chairman Tim Scott said the Senate adopted 20 key provisions from the House bill. “Our bill is fantastic. Their bill is good,” Scott said. “Together, they create a strong bicameral approach to housing.”