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Under Proposed Treasury Rule, Corporate Homebuyers Who Don't Track Their Receipts Face $1 Million Fines
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.
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EU Moves to Ease Packaging Rules for Small Businesses Trading Across Borders
The European Union has moved to reduce the administrative burden imposed on smaller businesses by its packaging legislation, agreeing a negotiating position that would relax requirements for companies selling limited quantities of packaged goods in other member states.
The Council adopted its position on 21st October, proposing an exemption from the obligation to appoint an authorised representative in another EU country when the amount of packaging placed on that country’s market remains below one tonne per calendar year.
The measure addresses complaints from small and medium-sized enterprises that the Packaging and Packaging Waste Regulation, which became applicable on 12th August 2026, creates unnecessary expenses for companies engaged in relatively modest volumes of cross-border commerce.
The proposal forms part of the EU’s eighth legislative simplification package and will now be negotiated with the European Parliament.
Cross-border compliance costs under scrutiny
Under the Packaging and Packaging Waste Regulation, businesses placing packaging or packaged products on the European market are subject to obligations concerning waste management and extended producer responsibility.
The extended producer responsibility system requires producers to contribute to the management of waste generated by products and packaging placed on the market.
For businesses operating across borders, the framework also includes requirements concerning authorised representatives in member states where producers are not established.
These representatives perform specified compliance functions and provide a point of contact for national authorities.
The system can create substantial administrative obligations for businesses trading in several countries, particularly when the quantity of packaging supplied to individual markets is limited.
A small Belgian retailer, for example, may sell products to customers in Germany, France and the Netherlands without maintaining physical operations in those countries.
The requirement to arrange representation separately across different markets can add compliance costs regardless of whether the volume of trade justifies them.
Under the Council’s proposal, eligible EU-based producers placing less than one tonne of packaging annually on another member state’s market could be exempted from appointing a representative there.
The threshold would be assessed by reference to the quantity placed on the market of the member state concerned.
However, the proposed exemption would not abolish the wider principle of extended producer responsibility or automatically release businesses from their other environmental obligations.
Packaging reform follows early implementation problems
The regulatory changes come only two months after the EU’s revised packaging framework began applying across the single market.
The legislation, Regulation (EU) 2025/40, is intended to reduce packaging waste, improve recyclability and establish more consistent requirements for products and packaging materials.
It covers an extensive range of commercial activities, including manufacturing, retail, food distribution, transport packaging and online sales.
As EU Today reported when the regulation began applying in August, the legislation introduces new requirements affecting packaging design, materials and waste prevention.
However, the practical implications for smaller firms have generated pressure for modifications.
In September, EU Today examined the emerging campaign for simplification, as business organisations questioned whether the compliance system adequately reflected the circumstances of smaller producers.
The Council’s latest agreement represents a further legislative step, replacing general calls for administrative relief with a specific negotiating position.
The Commission also issued detailed implementation guidance in June 2026 after receiving numerous questions from member states and businesses about how the regulation should be interpreted.
Safeguards and temporary exemption
The proposed exemption would not apply without conditions.
The Council’s negotiating mandate includes a safeguard allowing the relevant authorities to respond when a producer fails to comply with extended producer responsibility obligations.
It also provides for the European Commission to review the duration of the temporary suspension by 31st December 2030, ahead of its scheduled expiry in 2032.
The timetable reflects the possibility that broader reform of producer responsibility arrangements could replace the temporary measure.
The Commission is preparing a Circular Economy Act intended to address additional problems affecting Europe’s recycling and secondary raw materials markets.
That initiative could provide a more comprehensive framework for the administration of producer responsibility systems across member states.
For now, the Council has opted for a narrower intervention designed to reduce the immediate burden on smaller companies without reopening the entire packaging regulation.
Single market objectives and environmental obligations
The proposal also reflects a broader problem with European regulatory integration.
Although companies can sell goods throughout the single market, compliance requirements often remain administered through national systems, requiring businesses to deal with separate authorities and procedures.
For multinational corporations, such costs can be distributed across substantial commercial operations. For smaller exporters and online retailers, similar administrative requirements can consume a much greater proportion of turnover.
The Council argues that removing unnecessary representation requirements would support cross-border trade while preserving the objectives of European environmental legislation.
The Irish presidency will now seek agreement with the European Parliament on the proposed amendment.
Until that legislation is adopted and becomes applicable, businesses must continue to comply with the existing rules, including relevant national producer responsibility requirements.
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Meloni Prepares New Security Measures After Milan Riots Leave Hundreds Detained
Italian Prime Minister Giorgia Meloni has convened an emergency government meeting following two days of violent unrest in Milan and other northern cities, where demonstrators clashed with police, looted shops and damaged public property during protests over living costs and deteriorating public services.
Police brought 271 people to police headquarters following Sunday’s disturbances in Milan, including 220 minors. Of those detained, 32 were formally arrested and another 28 were reported to the judicial authorities, according to figures released on Monday, 19th October.
The violence has prompted the Italian government to consider further restrictions on those involved in violent demonstrations, potentially introducing additional powers directed at organised disorder and juvenile offenders.
Milan city centre hit by looting
The disturbances began during demonstrations on Saturday, 17th October, organised amid growing dissatisfaction over household expenses, public services and wider political grievances.
Although the protests initially included peaceful participants, groups of masked individuals subsequently confronted riot police in central Milan. Officers used tear gas and water cannon as demonstrators erected burning barricades and threw objects at security personnel.
The unrest continued on Sunday, when shops were attacked close to Piazza del Duomo, one of Milan’s principal commercial and tourist areas.
Among the premises targeted were branches of Decathlon, Arc’teryx and Vodafone. Television footage showed damaged shopfronts, overturned street furniture and burning rubbish containers.
According to police figures reported on Monday, 174 of those taken to police headquarters were subjected to preventive detention measures introduced under recent Italian security legislation.
Fourteen members of the security services were reported injured during Sunday’s disturbances, including ten police officers and four members of the municipal police.
The judicial authorities are examining the conduct of individuals suspected of taking part in attacks on businesses and confrontations with officers. Prosecutors have sought custodial measures against several adults accused of offences including devastation, looting and aggravated resistance.
The large proportion of minors among those detained has become a central issue in the political response.
Violence spreads across northern Italy
Milan was not the only city affected by disorder. Saturday’s demonstrations also produced confrontations in Turin, Bologna, Brescia and Bergamo.
Italian police reported arrests across the affected cities, while the scale and organisation of the disturbances have raised questions about whether different groups were acting independently or using demonstrations as opportunities for coordinated violence.
There is not yet sufficient publicly established evidence to attribute the disorder to a single organisation or political movement.
The clashes coincided with major protests in neighbouring France, where similar concerns over living costs and public administration have contributed to increasingly confrontational demonstrations.
Although the grievances overlap, the Italian and French movements have different political backgrounds and organisational structures.
Government considers emergency legislation
Following a meeting at Palazzo Chigi on Monday, Meloni’s government indicated that it was considering a legislative response, potentially through an emergency decree.
According to details of the government discussions, proposals under examination include additional measures against violent offences, changes to preventive policing and possible restrictions addressing road blockages.
Some measures could be drawn from security legislation already under consideration in the Italian Senate. Ministers have also discussed the need for more effective intervention against juvenile offenders.
The meeting included Deputy Prime Ministers Matteo Salvini and Antonio Tajani, Interior Minister Matteo Piantedosi, Defence Minister Guido Crosetto and senior officials from the police, Carabinieri and intelligence services.
The government has stressed that peaceful demonstrations must remain protected while arguing that violence and organised destruction require a stronger response.
No final legislative text had been adopted at the conclusion of Monday’s meeting. A decree could be considered by the Council of Ministers as early as Tuesday, although the precise content remains subject to further examination.
Dispute over responsibility for policing
The unrest has also produced a dispute between Milan’s municipal authorities and the national government.
Mayor Giuseppe Sala questioned the adequacy of the policing arrangements, arguing that the number of officers initially deployed was insufficient to control the disturbances.
Interior Minister Matteo Piantedosi rejected that criticism, while senior government figures accused local political leaders of failing to condemn the violence unequivocally.
The disagreement reflects a wider question over how responsibility for anticipating and containing serious public disorder should be divided between local administrations and national security authorities.
Italy’s opposition has also challenged the government’s handling of the disturbances. Former Prime Minister Matteo Renzi criticised Meloni and Piantedosi over their failure to prevent the violence, calling for a change in leadership at the Interior Ministry.
The political argument is likely to intensify if the government proceeds with emergency legislation. Supporters of stronger police powers argue that the existing framework is insufficient to deal with rapidly organised disturbances, while opponents will scrutinise the proportionality of new restrictions and their effect on peaceful protest.
The immediate test for the government will be whether additional legal powers can improve public-order operations without replacing effective policing, intelligence gathering and judicial enforcement.
Greece’s Water Reform Bill: Privatization and prices increases underway?
Parliament in Greece has approved a government bill concerning the country’s two major water utilities, EYDAP and EYATH in Athens and Thessaloniki respectively. The bill passed amid strong opposition criticism that the legislation could lead to the privatization of water services. The bill, introduced by the Ministry of Environment and Energy, passed with support from […]
The post Greece’s Water Reform Bill: Privatization and prices increases underway? appeared first on Keep Talking Greece.