Bipartisan Legislation to Expand Housing Supply
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. NAHB worked closely with House and Senate lawmakers to pass this historic housing package, which includes more than 50 sections addressing housing supply, financing, disaster recovery and other priorities.
Enacting the 21st Century ROAD to Housing Act is only the beginning. Federal agencies must now move the law from passage to implementation, while Congress will need to fund several of its key initiatives.
Next steps include:
- Writing regulations and issuing guidance to carry out the law.
- Conducting required studies and launching new programs.
- Identifying which provisions can take effect quickly and which require further federal, state and local action or funding.
NAHB helped secure key provisions to increase single-family and multifamily production and support more remodeling activity. Over time, the legislation will expand housing opportunities for buyers and renters, strengthen homeownership and help address affordability challenges nationwide.
Key Lawmakers Explain Challenges Passing Housing Bill
NAHB Member Speaks on Affordable Housing Benefits
Key Sections of the ROAD to Housing Act
Federal Guidelines for Point-Access Buildings
Directs the Department of Housing and Urban Development (HUD) to develop model code language, best practices, and technical guidance to help states, territories, tribes, and local governments facilitate the permitting of point-access (single-stair) residential buildings up to six stories. It also authorizes HUD to establish a competitive grant program to support pilot projects evaluating these building designs.
Database of Publicly Owned Land
Requires Community Development Block Grant (CDBG) grantees to maintain a publicly accessible, searchable database identifying all undeveloped land owned by the grantee. It also makes creating and maintaining the database an eligible use of CDBG funds.
The Housing Supply Frameworks Act
Authorizes HUD to work with stakeholders, including builders and developers, to identify best practices and turn them into practical steps for state and local governments.
Addition of Affordable Housing Construction as an Eligible Activity
Adds new construction of affordable housing as an eligible use of CDBG funds.
The Innovation Fund Act
Creates a competitive, flexible funding source for communities that are increasing housing production. Funds may be used to improve community infrastructure, support housing development, and supplement water and sewer grants.
Accelerating Home Building Act
Establishes a grant program to help local governments, tribal governments, and municipal organizations adopt pre-reviewed designs, or “pattern books,” for small-scale, mixed-income affordable housing — such as duplexes, fourplexes, ADUs and cottage courts.
The Build Now Act
Creates a pilot program to incentivize housing developments of all types in certain CDBG participating jurisdictions. It adjusts CDBG grant amounts based on each locality’s “housing growth improvement rate,” rewarding communities that take steps to increase housing production and reducing funding for those where housing growth lags.
Reforming Disaster Recovery Act
Authorizes the Community Development Block Grant – Disaster Recovery (CDBG-DR) program for three years and establishes the Office of Disaster Management and Resiliency within HUD to administer the program. HUD must work with other agencies to share data on disaster recovery efforts and develop robust oversight of grantees.
Unlocking Housing Supply Through Streamlined and Modernized Reviews Act
Reduces red tape in environmental reviews by streamlining the process to support new housing development. NAHB also secured language to simplify National Environmental Policy Act (NEPA) reviews for small and infill housing projects by removing duplicative reviews and expanding the use of “categorical exclusions,” which will help projects move forward faster and at lower cost.
Whole-Home Repairs Act
Creates a HUD pilot program that provides grants to state and local governments to help eligible landlords and low- to moderate-income home owners make needed modifications, repairs and upgrades that improve accessibility, habitability and energy efficiency.
The Housing Affordability Act
Requires the Federal Housing Administration to increase multifamily loan limits and index them to inflation.
HOME Investment Partnerships Reauthorization and Reform Act
Reforms and reauthorizes the HOME Investment Partnerships Program, making key updates to improve administration and support the construction of more affordable housing.
Community Investment and Prosperity Act
Raises the Public Welfare Investment (PWI) from 15% to 20%. PWI governs banks’ ability to invest in projects that support low- and moderate-income communities or families, including affordable housing financed by the LIHTC.
Appraisal Modernization Act
Requires the Federal Housing Administration (FHA), the Federal Housing Finance Agency (FHFA), the U.S. Department of Agriculture and the Veterans Administration to implement and maintain procedures for consumer-initiated reconsiderations of value (ROV), or subsequent appraisals for federally backed mortgage loans. ROV requirements are now mandated by federal law.
Strengthens community banks by providing regulatory relief, easing funding costs and encouraging new bank formation. It also creates a two-year pilot program to support new community banks, particularly in rural areas.
Homes Are for People, Not Corporations
Bars large institutional investors that own more than 350 single-family rental homes from purchasing additional single-family homes unless done under certain exemptions. Single-family build-to-rent (BTR) communities are mostly exempt from this provision.
Resources
Talking Points
Download a breakdown of key measures for members to discuss with industry leaders and policymakers. Download talking points
Executive Summary
Dive into the specifics on key provisions in the 21st Century ROAD to Housing Act, including benefits for the residential construction industry, expected timelines and next steps for members. Download executive summary
Top 5 Policy Wins Flyer
View a condensed, one-page flyer highlighting the legislation's most impactful policies on housing affordability. Download flyer
Member and Staff Videos
Hear from industry experts about the important provisions in this legislation and other advocacy initiatives. Watch videos
Presentation Template
Share key features of this bill with industry leaders and policymakers. Download presentation