Treasury posted its first Section 901 implementation Q&A this morning. Short read: it clarifies one important thing and leaves the bigger questions for later guidance.
What it clarifies: the seven-year disposition clock starts at certificate of occupancy, not at acquisition. That matters for the build-to-rent capital stack — projects in horizontal development phase aren't immediately on the clock the moment construction debt closes.
What it leaves open: the treatment of single-plat communities, refinance triggers, and whether mid-construction transfers between affiliated entities reset the clock. These are the harder questions, and they're the ones lenders and equity partners need answered before underwriting comes off the sidelines.
My read: this is a narrow, technical clarification — useful but not decisive. The market signal will come from the next guidance document, which Treasury staff have indicated will address affiliated-entity treatment specifically.
The legislative path to a targeted Section 901 fix remains the cleaner answer. See Homefront No. 3 for the legislative version, and Homefront No. 4 for where the window currently sits.