Housing Legislation Update: What the 21st Century ROAD to Housing Act Means for Corporate Relocation Home Sale Programs

The Senate just advanced major housing legislation that includes institutional investor restrictions. WERC is actively advocating for a relocation exception. Here's what mobility leaders need to know.

The landscape on institutional investor housing policy shifted dramatically this week. On Monday, Senators Senators Tim Scott (R-SC) and Elizabeth Warren (D-MA) released the latest version of the 21st Century ROAD to Housing Act, which passed its first procedural hurdle Monday evening with overwhelming bipartisan support (84-6). 

The amended bill text introduced by Senators Scott and Warren incorporates into the House Bill key provisions of their Senate’s ROAD to Housing Act, which was originally passed by the Senate as part of the National Defense Authorization Act (NDAA) in December but removed by the House of Representatives before NDAA’s final passage. Importantly, the new version adds provisions around large institutional investors building off provisions of President Trump’s January  Executive Order (Stopping Wall Street From Competing With Main Street Homebuyers).The White House released a Statement of Administration Policy Monday night indicating that if the Senate's bill were to pass as written, the president's advisers would recommend that he sign it.  This new bill has likely eclipsed other introduced legislation on this topic, such as the  Homes for American Families Act, as the likely legislative pathway for Congress to move a bill on institutional investors forward to President Trump’s desk.  However, the 21^st Century ROAD to Housing Act must still receive final approval in the Senate before returning to the House for consideration of the amended version.

What's in the Bill?

The bill defines an institutional investor as a company that owns 350 or more homes, and it has exemptions to the single-family acquisition ban, including homes that are built to rent. 

According to the Senate Banking Committee, the bill "answers the call to ensure more Americans can own a home of their own, while preserving targeted exceptions that maintain an adequate housing supply for families not yet ready to buy." 

If passed into law, the 21st Century ROAD to Housing Act would mark the largest legislative housing package in decades. 

Why This Matters for Relocation

Here's the critical issue: According to WERC, the broadness of  the definitions as currently drafted in the Senate-amended bill  could potentially create issues for corporate relocation home sale programs administered directly or via an RMC—specifically BVO (Buyer Value Option), AVO (Amended Value Option) and GBO (Guaranteed Buy Out) programs—depending on how those definitions are applied.

This wasn't a concern with the original Executive Order, which clearly targeted Wall Street firms building rental portfolios. But legislative language requires more precision, and WERC has identified potential gaps that could inadvertently affect legitimate relocation transactions.  In recent weeks, WERC has been engaging with policymakers to flag the risk of unintended impacts to home sale programs, including in letters to the White House and Treasury Department in mid-February and outreach to relevant House and Senate committee leadership and committee members.

WERC continues to actively advocate for a new exception within the bill's parameters to clearly address relocation home sale programs.

What Happens Next?

The Senate bill still needs a final vote, expected as soon as Wednesday. Then the bill returns to the House, where it will need to be reconsidered by the chamber. 

The key question now: Will the House adopt the Senate new version as-is given the lopsided bipartisan vote and White House endorsement, or will they push for changes? That decision will determine the future course of this bill and how quickly any legislation reaches the President's desk—and whether there's an opportunity to add clearer relocation carve-outs.

What Mobility Leaders Should Do Now

1. Monitor closely. This is moving fast. The Senate's procedural vote Monday was just the beginning.
2. Engage with WERC. If your organization is a WERC member, this is the time to ensure your voice is heard. WERC is advocating for relocation-specific exceptions. WERC will be forthcoming with additional information for members and the talent mobility industry overall, including letter templates that members can use to reach out to Congress directly.
3. Continue operations. Until legislation is signed into law and implementing regulations are issued, BVO, AVO and GBO programs continue operating normally.
4. Document your transactions. Ensure your home sale documentation clearly reflects that transactions result in sales to individual owner-occupants—not portfolio accumulation.

The fundamental argument remains sound: relocation home sale programs facilitate transfers to families, not away from them. The challenge is ensuring the legislative language reflects that distinction and doesn’t unintentionally impact programs critical for U.S. employers and their employees.

The legislation, known as the Homes for American Families Act, would amend the landmark Sherman Antitrust Act of 1890 to make it illegal for investment funds with over $150 million in assets to buy single-family homes, condominiums or townhouses. It doesn't apply to homebuilders that are constructing units for sale.  It would also task the Justice Department's antitrust division, which brings civil suits to quash alleged anticompetitive practices, with enforcing the law. 

We appreciate Michael Jackson's (WERC) editorial and knowledge enhancements to this post!