Editor’s note: This story was updated June 30, to reflect the cancellation of the bill signing by President Trump.
Congress has passed the largest housing bill in decades, with the House of Representatives approving the landmark legislation 358-32 on June 23.
Passed by the Senate a day earlier, the 21st Century ROAD to Housing Act brings together a wide range of provisions aimed at making housing more affordable and encouraging housing construction.
The legislation was expected to be signed by President Trump on June 24; however, he canceled the bill signing due to a push on his Save America Act. Lawmakers and others remained optimistic the housing bill would be approved.
“Voters are demanding action on housing supply and affordability, and Congress has delivered a historic bill to address their concerns. Although there was no bill signing today, we are confident the 21st Century Road to Housing Act will eventually become law,” said Bill Owens, chairman of the National Association of Home Builders and a remodeler from Worthington, Ohio.
Owens applauded the bipartisan efforts. “The 21st Century ROAD to Housing Act will help increase the nation’s housing supply by reducing regulatory barriers and encouraging local governments to reform zoning and land-use policies that have limited home building,” he said. “By expanding homeownership and rental housing opportunities nationwide, this legislation will help ease the housing affordability crisis.”
The final version of the bill contains key priorities for the affordable housing industry, including raising the public welfare investment (PWI) cap from 15% to 20%. This opens the door to banks increasing their investments in affordable housing.
“The 21st Century ROAD to Housing Act would substantially increase our ability to finance more affordable housing,” said Dudley Benoit, president of the Affordable Housing Tax Credit Coalition’s board of directors and senior managing director at Walker & Dunlop. “In particular, the PWI cap increase would serve as a welcome boost, allowing banks to more effectively leverage the [low-income] housing credit and increase their investments in affordable housing nationwide.”
The bill also calls for the Federal Housing Administration to increase multifamily loan limits to better match housing market costs and enhance affordability.
One of the most debated points was around banning institutional investors from buying single-family homes. While the final version includes restrictions on institutional investor buyers, it removes some of the language that would have limited the development of build-to-rent properties, according to housing advocates.
The bill also calls for the Department of Housing and Urban Development to evaluate the Build America, Buy America program’s impact on housing with HOME funds.
“With both the House and Senate now having approved the legislation, the bill is on its way to the president’s desk. This achievement reflects years of work by housing advocates, industry leaders, community organizations, and policymakers from both parties who recognized the urgent need for action,” said David M. Dworkin, president and CEO of the National Housing Conference. “This legislation reflects a broad, bipartisan commitment to expanding housing opportunity. It combines leading House and Senate proposals to increase housing supply, modernize federal programs, strengthen community development and disaster recovery, support affordable housing production, and improve access to rental housing and homeownership. By reducing barriers and updating outdated policies, the bill will also help existing federal investments deliver greater long-term impact.”
Once the legislation is signed, it will be “meaningful step forward but is just one component of a longer-term strategy,” according to Michael T. Pugh, president and CEO of the Local Initiatives Support Corp.
“The housing crisis impacts working families, seniors, and communities across the country, and warrants a sustained, comprehensive response to ensure that every American has access to a safe, stable, and affordable home—the foundation from which opportunity and prosperity grow,” he said.
David Gasson, a partner at MG Housing Strategies, also pointed out the importance of the bill.
"We are very pleased with the extent Congress went to in the 21st Century ROAD to Housing Act to address issues impeding housing production," he said. "From encouraging production through the Community Development Block Grant (CDBG) program, authorizing CDBG-Disaster Recovery for three years, and lifting the Rental Assistance Demonstration cap by 100,000 units, Congress demonstrated the urgency of getting housing production up and easier, on a very bipartisan basis. Streamlining environmental reviews, making it easier for qualified owners to finance a home and having HUD examine the deficiencies in the Build America, Buy America program, which are causing fatal delays and cancellations of housing developments, are all steps in the right direction. We applaud Congress on their determination to get this legislation passed.”
The bipartisan bill was led by Senate Banking Committee chairman Tim Scott (R-S.C.) and ranking member Elizabeth Warren (D-Mass.) and House Financial Services Committee chairman French Hill (R-Ark.) and ranking member Maxine Waters (D-Calif.).