Good News for Developers: Senate Passes Amended 21st Century ROAD to Housing Act

On June 22, 2026, the U.S. Senate passed an amended version of the 21st Century ROAD to Housing Act. The amended bill removes a major concern for developers of build-to-rent (“BTR”) projects.

What the Old Bill Required

Under the previous version of the bill, large institutional investors—companies that own 350 or more single-family homes—could not purchase single-family homes unless the purchase qualified for an exemption.   Purchases of newly constructed homes as part of a BTR program were exempted, but those homes were required to be sold within seven years of purchase.

The BTR model depends on long-term ownership. A mandatory seven-year deadline to sell is fundamentally at odds with how these projects are structured and financed, making it difficult for developers to attract the institutional investment these projects require. Specifically, it would require the developer to convey the property (most likely to individual owners), effectively converting the project to a residential condominium, which raises serious concerns about the insurability under most general liability insurance policies.

What the New Bill Does

The new version of the bill eliminates the seven-year disposal requirement entirely, while keeping the list of exempted purchases mostly intact. Large institutional investors would not be required to sell newly constructed homes purchased as part of a BTR program, restoring the long-term investment horizon a BTR project requires.

What Comes Next

The bill passed the House on June 23, 2026 and is awaiting President Trump’s signature. The President has delayed signing the bill into law until Congress passes the SAVE Act. Most observers, however, expect the bill to become law either with President Trump’s signature or, absent one, automatically within 10 days.