Senate Passes Major Housing Package
The Senate on Oct. 9 passed NAHB-supported housing legislation that offers meaningful solutions to increase the nation’s housing supply by addressing key concerns around zoning and land-use policies, the aging housing stock, rural housing, and multifamily housing.
“NAHB applauds the Senate for passing a bipartisan housing package to fix the housing crisis by addressing our nation’s critical lack of housing supply,” said NAHB Chairman Buddy Hughes. “Building more homes is the only way to ease America’s housing affordability crisis, and the ROAD to Housing Act includes favorable provisions aimed at zoning and land-use policies, rural housing and multifamily housing that will stimulate construction of sorely needed housing.”
The ROAD to Housing Act directs the Department of Housing and Urban Development to develop best practices with key stakeholders, such as home builders and developers, to provide state and local governments with an array of options to increase housing production. Similarly, there is a provision to reward communities that welcome housing growth with more Community Development Block Grant funding.
The legislation also provides multifamily owners an opportunity to continue participating in the rural rental assistance program after their mortgages mature. On the single-family side, income derived from accessory dwelling units can now be used to qualify for the Section 502 Guaranteed Loan Program, which also relieves the original borrower of liability when their loan is transferred and assumed by a new borrower.
For multifamily builders, the legislation calls for a study and rulemaking process that will adjust Federal Housing Administration loan limits to better reflect the true cost of construction and facilitate more apartment construction.
The ROAD to Housing Act is a major legislative package that also includes other beneficial provisions for the housing industry.
“We look forward to working with Congress and President Trump to enact a bicameral, bipartisan housing package that addresses supply-side and regulatory issues that are acting as barriers to build more homes,” said Hughes.