NMHC and NAA Express Concern Over Build-to-Rent Provision in Senate’s 21st Century ROAD to Housing Act
The National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) have issued a joint statement in response to the Senate’s passage of the 21st Century ROAD to Housing Act. The legislation, designed to address America’s pressing housing affordability challenges, represents a significant step forward for the country’s rental housing market. However, both organizations are raising concerns over a last-minute provision that could undermine the bill’s original intent and hinder housing supply.
Sharon Wilson Géno, President of NMHC, and Bob Pinnegar, President and CEO of NAA, emphasized that Congress has appropriately made housing affordability a top priority over the past year. “For the last year, addressing housing affordability has rightfully been a top concern for Congress and the Administration. The House and Senate have taken significant steps toward achieving that goal by drafting the Housing for the 21st Century Act and the ROAD to Housing Act, respectively,” they said.
Both NMHC and NAA strongly supported the initial proposals from the House and Senate, noting that each contained important measures to expand housing options and improve affordability. The organizations recognize the potential of the core elements of the newly combined 21st Century ROAD to Housing Act. However, they caution that an eleventh-hour addition threatens to undermine these gains.
The controversial provision requires that Build-to-Rent (BTR) communities be sold as individual units to homebuyers rather than being developed and maintained as rental communities. NMHC and NAA argue that this requirement is unworkable and could have immediate negative consequences for housing supply, affordability, and investment. “The provision requiring disposition of Build-to-Rent communities as individual units to homebuyers is plainly not feasible,” Géno and Pinnegar stated. “It would stall new communities from being built and divert investment away from an important affordable housing option for renters and their families.”
Build-to-Rent communities, they emphasize, are a critical tool in addressing housing challenges. Unlike traditional single-family developments, BTR communities provide professionally managed rental housing with a range of amenities, creating opportunities for residents to access better employment and educational options. They also offer a stable, long-term rental solution that serves the needs of seniors, military service members, families, and students—groups that may not be in a position to buy a home.
“The loss of potential BTR housing would have a direct impact on affordability,” the statement continued. “Fewer units available for rent mean higher rental costs for Americans. This is precisely the opposite of the bill’s original goal, which is to expand housing supply and improve affordability.”
NMHC and NAA are urging lawmakers to reconsider this provision before the final legislation is passed. They stress that maintaining the bill’s pro-housing focus is crucial for the nation’s rental market. By removing the disposition requirement, Congress can ensure that the 21st Century ROAD to Housing Act encourages the construction of new communities, attracts investment in rental housing, and provides Americans with a range of housing options to meet their needs at different life stages.
“Now is the time for lawmakers to return the bill to its original pro-housing intent,” Géno and Pinnegar said. “This legislation should increase housing supply and ease affordability challenges for renters and their families. Ensuring access to BTR housing is a vital part of achieving that goal.”
The statement also highlighted the long-standing collaboration between NMHC and NAA in advocating for the multifamily housing industry. For more than 27 years, these organizations have worked together to provide a unified voice for developers, owners, and operators of rental housing across the United States. Drawing on the policy expertise of staff in Washington, D.C., as well as the advocacy power of 139 state and local NAA-affiliated associations, the organizations are positioned to influence housing policy that affects millions of Americans.
Today, approximately one-third of all Americans rent their housing, and 40 million of them live in an apartment home. The NMHC and NAA stress that decisions made in Congress regarding BTR communities will have a direct impact on these renters. Protecting and promoting the growth of professionally managed rental housing is essential to ensuring that renters across the country continue to have access to safe, affordable, and well-maintained homes.
In conclusion, while NMHC and NAA support the overarching goals of the 21st Century ROAD to Housing Act, they call on the House and Senate to amend the bill to remove the provision that would require BTR communities to be sold as individual units. Doing so will preserve the bill’s original intent of expanding housing supply, supporting affordability, and creating more housing opportunities for Americans at every stage of life. Both organizations remain committed to collaborating with lawmakers to advance solutions that strengthen the rental housing market and ensure that every American has access to safe, high-quality housing.
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