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.
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Exploring the Next Steps on the ROAD to Housing
NAHB Member Speaks on Affordable Housing Benefits
Key Sections of the ROAD to Housing Act
The Housing Supply Frameworks Act
Authorizes the Department of Housing and Urban Development to work with stakeholders, including builders and developers, to identify best practices and turn them into practical steps for state and local governments.
The Build Now Act
Creates a pilot program to incentivize housing developments of all types in certain Community Development Block Grant (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.
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 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.
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.
Raising the Public Welfare Investment (PWI) Cap
Raises the 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.
The Housing Affordability Act
Requires the Federal Housing Administration to increase multifamily loan limits and index them to inflation.
Reforms to the HOME Program
Reforms and reauthorizes the HOME Investment Partnerships Program, making key updates to improve administration and support the construction of more affordable housing.
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.
Additional Resources
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