Claims extracted
19
sentences that state something as happening or true
Uncertain
5%
1 of 19 hedged
("reportedly", "may", "according to")
Leaning
Leans left
of the writing, not the subject · beta estimate
Publisher signals
67/100
Reason's corrections and
hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Economy/Business
Same framing elsewhere
1
articles that frame the event the way this one does
When the 21st Century ROAD to Housing Act was still a work in progress, the Senate briefly inserted a ban on corporate ownership of single-family rental housing so sweeping that it might well have killed off the small but growing build-to-rent sector.
uncertain
it → insert → sector
After furious activism by the housing supply boosters, who had been the main advocates for the law's many other provisions, that investor ban was significantly pared back.
asserted
ban → par → provisions
The final version of ROAD, which became law in July, prohibits investors who own 350 single-family rental homes from buying new ones.
asserted
who → become → ones
But it also includes a long list of exemptions for large investor purchases of single-family rentals.
asserted
it → include → rentals
The primary exemptions include homes purchased as part of a build-to-rent project and dilapidated homes that the investor spends significant money renovating.
asserted
investor → include → money
The new restrictions go into effect this coming January.
asserted
restrictions → go → effect
On Thursday, the Treasury Department released a proposed rule that would create definitions for terms that go undefined in the law and clarify the scope of "excepted purchases" of single-family housing that large investors can still make.
asserted
investors → release → that
Build-to-rent housing that large investors can still buy is defined as a new single-family home that's never been owned by an owner-occupier, is purchased within 18 months of the home receiving a certificate of occupancy, and is occupied by a renter.
asserted
home → build → renter
Protected "renovate-to-rent" homes are defined as homes that had major building code violations that were fixed by the large institutional buyer and for which the investor spent at least 15 percent of the home's purchase price on improvements.
asserted
investor → renovate → improvements
The rule also provides definitions for rental homes owned as part of a program to boost homeownership, which is another excepted purchase large institutional investors will be allowed to make.
asserted
investors → provide → homeownership
Those programs are generally defined as programs in which the renter has the right of first refusal to buy the home and where the rent receives financial support from the homeowner to purchase the home.
asserted
rent → define → home
Taken together, the clarified exceptions in the Treasury rule still leave a lot of room for large institutional ownership of single-family homes in keeping with the final text of the ROAD to Housing Act.
asserted
exceptions → take → Act
They won't have to sell the homes they already own.
asserted
they → have → homes
They can still add to the supply of investor-owned rental housing through substantial rehabs and build-to-rent projects.
asserted
They → add → rehabs
Nevertheless, the Treasury rules will impose numerous paperwork burdens on investors who'll now have to track and report, for example, precisely how much money they've spent renovating a purchased rental house or else risk a huge fine.
asserted
they → impose → fine
Large investors who purchase a single-family home in violation of ROAD are liable for a maximum civil penalty of $1 million per home purchase.
asserted
who → purchase → purchase
The proposed Treasury rule highlights what a glaring exception the investor restrictions are to the overall spirit of ROAD.
asserted
restrictions → propose → ROAD
Through a variety of means, the law attempts to reduce the regulatory burden on new housing.
asserted
law → attempt → housing
Now, large investors will have to absorb significant compliance costs just to prove that they're adding new rental housing supply in precisely the right way.
asserted
they → have → way
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