House of Representatives Passes Revised Housing Bill
In an important development, the House of Representatives has passed its revised housing legislation, according to a report. This bipartisan move, which saw the bill pass 396 to 13, signals the next step in the journey of the legislation, as it now heads back to the Senate for further consideration.
Key Features of the Revised Housing Bill
The revised bill aims to increase local funding for housing construction, a move that resonates with a similar bill that had previously received strong bipartisan support in the Senate. One of the most significant changes in the House’s version of the legislation is the softening of a ban on institutional housing ownership.
This latest version of the bill removes a requirement that investors of build-to-rent housing sell the property within seven years. This tweak leaves the rest of the institutional housing ban intact, aligning with the Senate’s version of the legislation. This is a significant shift from a previous version of the bill, which many Democrats and populist Republicans believed was riddled with loopholes.
Community Bank Measures Included
The revised housing bill also includes a number of community bank measures, which were absent in the Senate’s version of the legislation. These key measures could potentially allow more small banks to engage in brokered and custodial deposits, and decrease overall oversight for smaller institutions.
This development has been closely watched by interested parties, as these issues remain in play while the bill goes back to the Senate. However, these measures have attracted some opposition. Notably, Sen. Elizabeth Warren, D-Mass., the ranking member of the Senate Banking Committee, has reportedly lobbied privately among Senate Democrats to oppose these measures, labeling them as a backdoor effort to deregulate the banking industry.
What’s Next for the Housing Bill?
With the bill back in the Senate, the next steps are critical. The Senate can choose to accept the House legislation, pass their own version, or enter a conference committee with key House lawmakers to iron out the differences.
Senate Banking Committee Chairman Tim Scott, R-S.C., and Sen. Elizabeth Warren have already indicated that they will not support simply passing the House version of the legislation. They expressed their commitment to continue working with the White House and House colleagues on a housing bill that can pass the Senate and reach the President’s desk.
This commitment comes as the White House has voiced its support for the House bill, after previously backing the Senate version. The administration has urged the two chambers to “resolve any remaining differences expeditiously.”
Final Remarks and Implications
House Financial Services Committee Chair French Hill, R-Ark., has defended the inclusion of community banking provisions in the housing bill. He stressed their importance to the supply side of housing, stating, “They do fit in the housing bill, because they are instrumental to the supply side of housing.” This viewpoint highlights the critical link between housing legislation and the financial sector, suggesting that these two elements cannot be viewed in isolation.
In conclusion, the passage of the revised housing bill in the House of Representatives marks a significant step forward in the legislative process. As the bill now returns to the Senate, the fate of the community banking measures and the bill as a whole hang in the balance. The final outcome will have significant implications for housing construction, institutional investment, and community banking.
Source: American Banker
