Senate Passes Sweeping Bipartisan Housing Bill 89-10, but House Hurdles Remain

The Senate on Thursday passed the 21st Century ROAD to Housing Act by a vote of 89 to 10, sending what NPR called the largest housing bill in decades, and CBS News called the most sweeping in decades, back to a House that is divided over parts of it. The bill, sponsored by Sen. Elizabeth Warren, D-Mass., and Sen. Tim Scott, R-S.C., aims to speed home construction and ease regulations to cut costs, CBS News reported.

The senators who voted no were Democrat Brian Schatz of Hawaii and Republicans Ted Budd, Ted Cruz, Ron Johnson, Mike Lee, Rand Paul, Rick Scott, Thom Tillis, Tommy Tuberville and Todd Young, according to CBS News. Warren told NPR the bill has “more than 40 different provisions in it, all of which aim in the same direction, which is to give a push toward building more housing.” Scott said, “It’s not a Republican issue or a Democrat Issue,” NPR reported.

The principal difference from the House version, which passed last month 390 to 9, is a ban that would stop any investor owning at least 350 homes from buying more, NPR reported; about 84% of the House bill’s provisions made it into the Senate text. There are exceptions, NPR said: investors could buy homes needing serious renovation or build new homes to rent, but would have to sell build-to-rent homes after seven years, with the renter getting first chance to buy. Build-to-rent now makes up about 7% of new single-family construction, NPR noted.

Research on the investor ban is mixed, NPR reported. The Urban Institute found that large investors with at least 1,000 homes and a presence in three markets own about 3% of single-family rentals nationwide, and Freddie Mac found that institutional investors may play a small role in price increases but far less than limited building and migration to high-cost cities. The typical U.S. home sells for about $400,000, above what the median family can afford, and Realtor.com estimates a shortage of 4 million units, according to NPR.

Other provisions include ending a chassis requirement for manufactured homes, which housing experts told NPR could save builders $5,000 to $10,000, and raising the cap on how much of their capital banks may invest in affordable housing projects from 15% to 20%, NPR said. CBS News reported that the bill includes a temporary ban on the Federal Reserve issuing a digital currency, which some House conservatives want made permanent.

The House path is uncertain. House Majority Leader Steve Scalise, R-La., said he is hopeful the chambers can find common ground, while Freedom Caucus Chairman Andy Harris of Maryland has signaled that conservatives have objections, CBS News reported. Senate Majority Leader John Thune, R-S.D., said the quickest way to finish would be for the House to pass the Senate bill, though a conference is possible, according to CBS News. The White House’s Office of Management and Budget said in a statement that it supports the Senate version. President Donald Trump has pushed to limit corporate home buying, signing an executive order in January, but CBS News noted that he told House Republicans this week that voters are demanding the SAVE America Act and not housing legislation, and has said he will sign no other bills until it passes.

The measure comes as affordability weighs on voters. A CBS News poll last month found more than 8 in 10 Americans say buying a home is harder than it was for earlier generations, and homebuyers need to earn 43% more than the average worker to afford a typical home, according to Federal Reserve data cited by CBS News.