Last week, the U.S. Senate passed the 21st Century ROAD to Housing Act by a sweeping 89–10 vote, advancing one of the most significant federal housing packages in years. The bill is a combined package that pulls together nearly 40 housing and community development proposals, including major elements of both the Housing for the 21st Century Act, passed by the House earlier this year, and the Senate’s earlier ROAD to Housing Act.
For affordable housing stakeholders, the bill is notable not just for its size, but for the breadth of programs it touches. One of the most important provisions would raise the public welfare investment cap for banks, a change supporters say could help increase liquidity for affordable housing investments. The bill also includes substantial reforms to the HOME Investment Partnerships Program, which has not been comprehensively reauthorized in decades, along with changes intended to make project delivery more workable across HUD and USDA programs.
At the same time, the bill is not without controversy. A provision aimed at limiting large institutional investors in the single-family market has raised concerns among some housing groups, who argue it could unintentionally discourage investment in build-to-rent housing and create problems for some Housing Credit-financed single-family rental models if not clarified further. Even groups that strongly support the broader package have said this section will likely need additional work before final passage.
The biggest question now is what happens in the House. Although the House passed its own housing package earlier this year, House leaders have indicated they are unlikely to simply accept the Senate version as written. That means the bill could face further negotiations, either informally or through a formal conference process, before it can move to the President’s desk. As of now, the Senate vote is a major milestone, but not the end of the road.
For TAAHP members, this is a federal bill worth watching closely. Its overall direction is favorable for housing production and program modernization, but the final package will matter. If Congress can resolve the remaining concerns, this legislation could become one of the most consequential federal housing bills in more than a decade.
To read the bill text, click here.
To read the section-by-section, click here.