Treasury proposes rules defining large institutional investors barred from buying homes
Treasury has issued a notice of proposed rulemaking to implement section 1001 of the 21st Century ROAD to Housing Act, which bars large institutional investors from buying single-family homes subject to exceptions. The rule defines undefined statutory terms and clarifies enforcement before the prohibition takes effect. Comments are due November 23, 2026.
- Comments on the proposed rule must be received on or before November 23, 2026.
- The statutory prohibition and exceptions take effect January 7, 2027, 180 days after the Act's July 11, 2026 enactment.
- A renovate-to-rent program requires improvements of at least 15 percent of the purchase price, with a non-exclusive safe harbor at 10 percent for structural or core system elements.
- Civil penalties under section 1001(d) can reach the greater of $1 million or three times the purchase price of the property, and a purchase violating the Act involving more than one large institutional investor counts as a single violation for calculating the maximum penalty.
- Treasury states it intends further rulemakings on other aspects of section 1001, including compliance procedures, reporting, recordkeeping, and enforcement actions.