Federal Register #2026-21675

Treasury Proposed Rules on Institutional Investors’ Single-Family Home Purchases

The U.S. Department of the Treasury proposes regulations implementing the 21st Century ROAD to Housing Act’s restriction on large institutional investors purchasing single-family homes. - Government buyer and agencies: This is a proposed rule from the Department of the Treasury, developed in consultation with the Department of Housing and Urban Development, the Federal Housing Finance Agency, and the Securities and Exchange Commission. - Regulatory scope: The proposal would clarify which entities qualify as large institutional investors and how the statutory purchase restriction and its exceptions apply. - Exceptions addressed: The proposal covers qualifying build-to-rent, renovate-to-rent, homeownership, and homeownership-boosting programs; certain purchases tied to previously contracted debts, loss mitigation, servicing, or investor obligations; and transfers between large institutional investors. - Enforcement: The proposal explains enforcement and the calculation of civil penalties. - Procurement status: This is a regulatory proposal, not a request to purchase products or services. No OEMs, vendors, products, quantities, or part numbers are identified.

Description

The Department of the Treasury is issuing a proposed rule to carry out section 1001 of the 21st Century ROAD to Housing Act, which prohibits large institutional investors from purchasing single-family homes, subject to specified exceptions. The proposal would clarify the meaning of “large institutional investor,” how certain statutory exceptions apply, and the enforcement mechanism. It addresses exceptions involving programs such as build-to-rent, renovate-to-rent, and homeownership, as well as certain debt-related purchases and purchases for loss mitigation. Comments are due November 23, 2026.

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