Senate Passes 21st Century ROAD to Housing Act 89-10 — NARPM Turns Focus to the House

The U.S. Senate passed the 21st Century ROAD to Housing Act (H.R. 6644) yesterday by an 89-10 vote, a strong bipartisan showing that reflects broad agreement that the country’s housing shortage demands action. There is a lot to like in this legislation — it takes meaningful steps to expand housing supply, empower homeowners and renters, and improve affordability for American families, and NARPM appreciates the leadership of Members from both parties who have worked to advance it.

However, we are disappointed that the Senate passed the bill without addressing several concerns that NARPM and others raised during the process. The bill now returns to the House, and we are optimistic that the House will use this opportunity to get the details right.

In our letter to Congress, we identified two specific provisions that require attention:

The institutional investor language, as currently drafted, could inadvertently classify professional property managers as “large institutional investors” simply because the units they manage — but do not own — may count toward the bill’s 350-unit threshold. This would subject property managers to the full regulatory weight of the legislation despite having no ownership interest in the properties they manage. NARPM has proposed a targeted technical fix: adding language to Section 901(a)(4)(B) that makes clear a third-party management contract alone does not constitute investment control over a property. This is a straightforward clarification that we believe Congress can adopt without controversy.

We also have significant concerns about the provision requiring divestment of build-to-rent single-family properties after seven years. Rather than expanding housing supply, mandatory divestment timelines will create investment uncertainty that deters developers and capital from entering this space — meaning fewer homes built at precisely the moment the country needs more, not less. NARPM is urging Congress to remove this provision and replace it with measures that incentivize new construction.

We are encouraged by the statement House Financial Services Committee Chairman French Hill issued today  in which he noted the importance of getting the details right and acknowledged concerns raised by House Members with the Senate bill. Chairman Hill’s commitment to working toward a bicameral result that brings down the cost of housing is exactly the right approach, and NARPM looks forward to engaging with the Committee and House leadership as the process moves forward.

NARPM has been engaged on this legislation throughout — for a full background on our position, see our earlier advocacy update. We will continue to keep members informed as the House takes up the bill and will be working closely with Members and staff to advance the fixes we have outlined.