Key facts
- Treasury proposes exempting newly built BTR communities from the 350-home investor ban.
- Exempted BTR properties must be purchased within 18 months of occupancy certificate.
- Older BTR communities may still trade between institutional investors via a separate exemption.
- Renovate-to-rent and homeownership programs also receive clarified exemptions.
- Violating the ban could result in penalties up to $1 million or triple the property's price.
The US Department of the Treasury has proposed new rules that would exempt build-to-rent (BTR) communities from a ban on large institutional investors acquiring single-family homes. The 21st Century ROAD to Housing Act, enacted earlier this year, restricts investors owning 350 or more homes from purchasing additional properties, with the ban set to take effect on January 7, 2027.
Treasury's proposed framework would allow purpose-built BTR communities that have not been owner-occupied and are purchased within 18 months of receiving a certificate of occupancy to qualify for an exemption. These homes must be intended for rent to individual renters. This provision aims to address concerns raised by the rental housing industry and provide clarity for developers and investors.
Older, existing BTR communities would not qualify for this specific exemption but could potentially be transferred between large institutional investors under a separate provision. The proposal also clarifies exemptions for renovate-to-rent initiatives and homeownership programs, and seeks public comment on the proposed parameters, including the 18-month window.