On March 12, 2026, the U.S. Senate overwhelmingly approved S.2651, the 21st Century Road to Housing Act, closely mirroring the version previously passed by the U.S. House. While reconciliation is still required, the legislation has broad bipartisan support.

The bill’s section 901, “Homeownership for Main Street America; Homes Are for People, Not Corporations” would prohibit “large institutional investors” from purchasing “single family homes.”

Key Definitions:

• Large Institutional Investor: Any business entity engaged in investing in single family homes that owns or controls 350 or more such properties after the Act’s effective date. Ownership and control extend to affiliates and subsidiaries, not just a single entity.
• Single Family Home: A 1–2 unit residential structure.

Several exceptions that allow large institutional investors to continue acquisitions apply:

• New construction or substantial renovation
• Build‑to‑rent or renovate‑to‑rent programs (subject to minimum renovation standards)
• Rent‑to‑own programs
• REO acquisitions tied to foreclosure or workout agreements

In some, though not all, of these scenarios, the investor must divest the property to an individual homeowner within seven years.

The Treasury Department is authorized to further refine these definitions through regulation, though the statutory thresholds themselves are not subject to change.

Based on the current language, AAPL members and their customers are unlikely to be materially affected. The 350‑property threshold—combined with the broad exceptions—places most private lenders and their investor borrowers well outside the scope of the restrictions.

AAPL and its Government Relations Committee have not taken an official position on this legislation due to its limited impact on our membership. However, we remain attentive to the broader implications of federal involvement in residential property ownership. Similar policies could emerge at the state level with significantly lower thresholds, which may warrant future engagement.

We will continue monitoring developments and will update the membership should further action become necessary. For questions regarding this legislation or AAPL’s GRC, please contact grc@aaplonline.com.