WASHINGTON — The US Treasury is issuing a proposed federal rule on Thursday to implement one of President Trump’s signature housing affordability bills that would bar institutional investors from buying single-family homes.

In a notice of proposed rulemaking, the Treasury Department will propose regulations prohibiting investors from purchasing the homes starting on Jan. 7, 2027 — unless it’s identified as an “excepted purchase,” such as those involved in build-to-rent programs, renovate-to-rent programs and homeownership programs.

“Under President Trump, this Administration continues to restore the path to affordable homeownership for millions of young and working families,” said Treasury Secretary Scott Bessent in a statement.

“Treasury is working to ensure American families and workers have a fair shot at purchasing homes in their communities by increasing housing supply and limiting large institutional investors’ role in the market, while supporting a strong, stable housing market and avoiding unnecessary disruption,” Bessent added.

The ROAD to Housing Act, which passed Congress but wasn’t signed by President Trump, listed definitions for institutional investors, who own 350 homes or more.

Trump refrained from signing the measure in a bid to pressure Congress to pass the SAVE America Act, a conservative priority that would impose a proof of citizenship requirement to vote. The law went into effect anyway since he didn’t veto it.

The real estate mogul also raised policy concerns about the measure, which he called a “yawn,” fearing that it would negatively impact homeowners.

The law is one of the most sweeping housing reform measures to get through in decades. It streamlined regulations and was aimed at boosting housing supply.

Despite his initial misgivings, Trump later signed an executive order codifying some requirements of the bill, even though it still became law.

The proposed federal rule will add standards for build-to-rent programs and provide safe harbor for purchases made under renovate-to-rent programs that help bring residences up to proper code, among other items

It will also outline civil penalties when institutional investors do buy up the homes.

A 30-day public comment period will follow the introduction of the proposed rule.

For years, populists on both the right and the left have cried foul over investment firms such as Blackstone buying up single-family homes, theorizing that it has been pushing prices up.

Blackstone and a few policy experts countered that the firm owned less than a percentage point of the single-family housing supply and that the chief culprit for high prices was government intervention impeding construction of new homes.