A proposal to build as many as a million rent-to-own “Trump homes” would put federal backing behind a homeownership model that has long struggled to deliver on its promise.

Lennar Corp. and Taylor Morrison Home Corp. are among the companies working on the effort, which involves selling newly built starter homes into a pathway-to-ownership program funded by private investors. Under one scenario, a portion of the rent tenants pay could serve as credit, after three years, for a down payment to buy the home. The industry is colloquially calling the proposal “Trump Homes” because it could give the president a signature program to address the housing shortage.

Reprinted courtesy of Prashant Gopal, Bloomberg and Patrick Clark, Bloomberg