When the 21st Century ROAD to Housing Act was still a work in progress, the Senate briefly inserted a ban on corporate ownership of single-family rental housing so sweeping that it might well have killed off the small but growing build-to-rent sector. 

After furious activism by the housing supply boosters, who had been the main advocates for the law's many other provisions, that investor ban was significantly pared back. 

The final version of ROAD, which became law in July, prohibits investors who own 350 single-family rental homes from buying new ones. But it also includes a long list of exemptions for large investor purchases of single-family rentals.

The primary exemptions include homes purchased as part of a build-to-rent project and dilapidated homes that the investor spends significant money renovating. 

The new restrictions go into effect this coming January. On Thursday, the Treasury Department released a proposed rule that would create definitions for terms that go undefined in the law and clarify the scope of "excepted purchases" of single-family housing that large investors can still make. 

Build-to-rent housing that large investors can still buy is defined as a new single-family home that's never been owned by an owner-occupier, is purchased within 18 months of the home receiving a certificate of occupancy, and is occupied by a renter. 

Protected "renovate-to-rent" homes are defined as homes that had major building code violations that were fixed by the large institutional buyer and for which the investor spent at least 15 percent of the home's purchase price on improvements. 

The rule also provides definitions for rental homes owned as part of a program to boost homeownership, which is another excepted purchase large institutional investors will be allowed to make. Those programs are generally defined as programs in which the renter has the right of first refusal to buy the home and where the rent receives financial support from the homeowner to purchase the home. 

Taken together, the clarified exceptions in the Treasury rule still leave a lot of room for large institutional ownership of single-family homes in keeping with the final text of the ROAD to Housing Act. They won't have to sell the homes they already own. They can still add to the supply of investor-owned rental housing through substantial rehabs and build-to-rent projects. 

Nevertheless, the Treasury rules will impose numerous paperwork burdens on investors who'll now have to track and report, for example, precisely how much money they've spent renovating a purchased rental house or else risk a huge fine. 

Large investors who purchase a single-family home in violation of ROAD are liable for a maximum civil penalty of $1 million per home purchase. 

The proposed Treasury rule highlights what a glaring exception the investor restrictions are to the overall spirit of ROAD. Through a variety of means, the law attempts to reduce the regulatory burden on new housing. Now, large investors will have to absorb significant compliance costs just to prove that they're adding new rental housing supply in precisely the right way. 

The post Under Proposed Treasury Rule, Corporate Homebuyers Who Don't Track Their Receipts Face $1 Million Fines appeared first on Reason Magazine.

New Yorkers won't be voting on any citywide offices this year, but they do have five ballot initiatives that could shape the city's future more than any politician on this year's ballot. Mayor Zohran Mamdani created a version of the Trump administration's infamous Department of Government Efficiency in New York called the Commission on Government Efficiency (COGE). The plan is for COGE to modernize city operations and accelerate public infrastructure and permitting—in that vein, COGE placed five proposals before voters on the November ballot, largely targeting the bureaucratic processes governing new construction and business activity across the five boroughs.

Questions 1, 2, and 3 on the ballot would end or reduce the use of public hearings in different city review processes. Question 1 would, according to the ballot language, "simplify [the] process to use public space for uses such as ramps, planters and cafes, by removing mandatory hearings and Council disapproval of sidewalk cafes, while maintaining community and Council input." Question 2 would "reduce paperwork for City contractors by authorizing [the] Procurement Policy Board to simplify [the] contractor questionnaire….[And] remove mandatory hearing for required client services report." Question 3 would "simplify review of street safety projects to reduce construction timelines," among other changes. Question 4 is about simplifying permitting.

These policies were not directly introduced by Mamdani, but they reflect a governing philosophy that New York City and other big cities desperately need: a local government that won't allow a small group of organized opponents to obstruct progress for the city at large indefinitely.

Nowhere is the bottleneck against much-needed development clearer than at public review hearings. In theory, a public hearing is democracy at its purest: Every voice is heard. But in practice, it usually becomes a slow-motion filibuster. The most persistent and best-organized opponents get a megaphone, with little to no input from the millions of New Yorkers who would broadly benefit from more housing, better infrastructure, and businesses that can open without getting wrapped in red tape.

The 2026 ballot questions, if approved, would take small steps toward addressing these problems. If they all passed, it wouldn't be a seismic change—a planter here or a parcel of land there. But that's kind of the point: Should routine administrative decisions require another round of formal public review hearings to hold up any change, big or small?

The post Even Under Mamdani, New York City's Ballot Questions Might Cut Red Tape and Public Review Hearings appeared first on Reason Magazine.