Update Regarding The 21st Century ROAD to Housing Act
Dear Investors,
Friday at midnight, The 21st Century ROAD to Housing Act officially became law via inaction from the Executive Branch.
The business plans for Funds sponsored by MIP Capital Partners will not change in the near-term. However, our ability to sell to Large Institutional Investors (>350 homes) could be impeded in the longer-term.
Large Institutional Investors can purchase scatter-site homes from sub-scale investors for up to two years once the legislation takes effect. The legislation takes effect 180 days after enactment (early January 2027). The industry is awaiting rulemaking from the Treasury regarding edge-cases in the legislation which will govern our ability to sell to Large Institutional Investors after the two-year period.
Our objective is to deliver value-maximizing outcomes for our Limited Partners regardless of market or regulatory conditions. If it is the case that the two-year stipulation is upheld, we will evaluate portfolio sales on an accelerated timeline.
Regulatory uncertainty drove a lull in new development starts in the first half of 2026, which will result in fewer deliveries in 2027. The slowdown in new supply will be supportive of rent growth in the near-term.
We are monitoring this situation closely and will keep you updated. Day-to-day, we are focused on achieving operational excellence and continuous improvement for the benefit of our investors.
Fund II occupancy is currently 100%. As of June 30, Fund II collections have met or exceeded our forecast in 12 of 14 months during the stabilized period. As of June 30, the Fund II liquidity position was 17% above our forecast.
Fund III occupancy is currently 97%. Fund III has experienced strong financial performance during the stabilized period (May and June of 2026).
Financial updates for the period ending Q2 2026 will be provided to Fund II and Fund III investors.
We very much appreciate your business.
Best regards,
Matt Sinclair
Founder, Chief Executive Officer