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Large private equity firms will no longer be able to expand their portfolios of existing single-family homes under a new federal law aimed at easing competition in the housing market for prospective homebuyers, CBS News reports.
The measure, led by U.S. Sen. Raphael Warnock, D-Ga., became law July 11, as part of the bipartisan 21st Century ROAD to Housing Act. The legislation took effect after President Donald Trump allowed the bill to become law without his signature, a process permitted under the Constitution when a president takes no action during the allotted review period while Congress remains in session.
Newly constructed homes are generally exempt from the restriction. Warnock said the legislation is intended to help families compete in a housing market where institutional investors have increasingly acquired residential properties.
“I hear from Georgians across the state who have been clamoring for action from Washington on the affordable housing crisis, and this legislation is proof that when we center the people instead of the politics, we can get good policy done,” Warnock said in a statement.
In addition to the restrictions on corporate home purchases, the broader housing package includes provisions designed to expand the nation’s housing supply. Those measures encourage local housing development, support factory-built housing, promote the redevelopment of underused commercial properties into residential units, and strengthen housing initiatives for veterans.
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Source: Black Enterprise
