On July 11, 2026, H.R. 6644, the “21st Century Revitalizing Opportunities in the American Dream to Housing Act,” became law after President Trump took no action within the required timeframe.
The legislation represents a landmark shift in federal housing policy, carrying significant implications for large institutional investors active in the single-family residential market.
The Act’s restrictions are not retroactive, meaning existing portfolios held by large institutional investors are not affected, and there is no requirement to sell or dispose of any currently owned properties.
Under Section 1001, titled “Homes Are for People, Not Corporations,” the law establishes a federal prohibition on large institutional investors purchasing additional single-family homes, unless an exemption applies.
A large institutional investor is defined as any for-profit entity that directly or indirectly holds investment control over 350 or more single-family homes in the aggregate, alone or in concert with other entities.
Single-family homes under the Act are defined as structures containing two or fewer dwelling units intended for residential occupancy, potentially including townhomes if they are individually plotted, but excluding manufactured homes.
Several categories of purchases are exempted, including build-to-rent programmes involving newly constructed homes, renovate-to-rent schemes meeting specific rehabilitation thresholds, and homeownership programmes meeting defined consumer protections.
Notably, the final version of the Act removed the previously proposed seven-year divestment requirement, and build-to-rent projects are now explicitly listed as qualifying excluded purchases.
Large institutional investors must notify HUD within 180 days of enactment and annually by December 31st, disclosing their status and the number of single-family homes under their investment control, organised by city and state.
Violations of the purchase prohibition carry civil penalties of up to $1 million per violation or three times the purchase price involved, whichever is greater, with funds transferred to HUD for homeownership expansion activities.
The Act will take effect 180 days after enactment and is currently set to sunset 15 years after that effective date, giving investors a defined window in which to structure their future acquisitions accordingly.
Any purchase of additional single-family homes made after the effective date by a large institutional investor must qualify for one of the Act’s exceptions, a determination that remains open to interpretation by both HUD and reviewing courts.