The Treasury Department proposed a rulemaking to prevent large institutional investors from purchasing single-family homes, as required by housing legislation recently passed by Congress.
Among its many provisions, the ROAD to Housing Act bans large institutional investors from purchasing homes unless the purchase qualifies as an “excepted purchase,” such as purchases made for build-to-rent programs. A large institutional investor is defined as an investor that has direct or indirect control over at least 350 homes.
Penalties for violating the law can range from $1 million to three times the purchase price of the property involved.
