Legislation is sometimes used to send a message.
Earlier this year it was brought to the attention of Think Realty’s Government Relations Committee (GRC) that a bill—Stop Predatory Investing Act—was making its way through the Senate. Members of our committee found it odd there was no bill summary, and we could not find any substantive material on it. However, when the bill was posted online, we saw it would prohibit business entities with 50 or more single-family homes from deducting interest or depreciation on those properties.
So, we jumped into action.
The bill was fraught with poorly constructed language, several contradictory provisions, and a significant number of unintended consequences. After speaking with our contacts on Capitol Hill, our concerns were leveled quickly. It appears this bill was more about signaling to constituents and other members of Congress across the aisle than a serious attempt at passing legislation. For now, we can rest a little easier knowing that Congress wasn’t serious about passing a bill into law that would make it difficult for REITs, funds, and larger housing providers to own more than 50 residential units.
If you’re interested in staying up to date about legislative issues that can affect us all, stay tuned. That’s exactly what the GRC is here for. If you become aware of federal, state, or local governmental legislation that may have a negative impact on real estate professionals, please don’t hesitate to reach out. You can always find out more about the GRC on the Think Realty website.