On the road to more housing in America

There is bipartisanship in America – at least as it relates to the need for more housing across the land. Home builders certainly favor more housing – that’s their business. Most localities would welcome more housing to accommodate economic development and a growing labor force. And housing advocates, particularly those concerned with lower-income households, see more housing supply as offering the possibility of lower costs for owning or renting a home.

With that consensus, it was possible for Sen. Elizabeth Warren of Massachusetts and Sen. Tim Scott of Florida, who would not see eye-to-eye on most other matters, to champion the 21st Century ROAD to Housing Act of 2026. The legislation was able to achieve overwhelming majorities in both the House and Senate. On July 11, 10 days after it was delivered to the president, the bill became law without his signature.

House Financial Services Committee Chairman French Hill of Arkansas, who led the effort in his chamber, said, “Homeownership should be within reach for more Americans, and this law moves us closer to that goal. This bill reduces unnecessary barriers to building, strengthens community banks, and ensures families – not institutional investors – have a fair shot at buying a home. The final product reflects years of bipartisan, bicameral collaboration and proves that when Congress stays focused on results, we can deliver meaningful reforms.”

The new law has many components. While recognizing the limits of federal authority, it offers various carrots and sticks to motivate action at the state and local level. Among the most impactful provisions of the ROAD to Housing Act are the ones that directly increase housing supply, reduce approval delays and expand financing for lower-cost homes.
With regard to approval delays, NEPA, the National Environmental Policy Act, passed in 1969, is tweaked. The law narrows environmental reviews required for small projects and infill housing, which is intended to shorten timelines and lower development costs for “missing middle” housing.

In addition to the NEPA streamlining, the biggest changes are the manufactured-housing reforms, the CDBG/HOME funding changes, and the limits on large institutional investors buying single-family homes.

Manufactured housing becomes more feasible as the housing act removes the permanent chassis requirement, (the permanent steel frame built into the underside of the home that allows it to be transported from the factory to its site). The law also expands financing options, which could make factory-built homes easier and cheaper to produce.

The legislation makes changes to the way federal housing grants can be deployed. Notably, local governments can use up to 20% of Community Development Block Grant funds for new affordable housing, which represents a major shift from prior rules.

The HOME program, one of the main federal affordable-housing tools, has been reformed and reauthorized. The new law updates and adds flexibility for infrastructure tied to these housing developments.

The law also recognizes a relatively new phenomenon in which institutional investors swoop into an area and buy up large numbers of housing units. Large investors are now limited in buying single-family homes, which is meant to protect would-be owner-occupants and reduce corporate pressure in entry-level housing markets.

Support for the new law came from many sectors and interest groups. As the bill was moving toward becoming law, we heard from the National Low Income Housing Coalition’s Renee Willis, President and CEO: “The nation’s affordable housing and homelessness crisis is rooted in the growing gap between incomes and the cost of rent, and the severe, pervasive shortage of affordable, available, accessible homes for households with the lowest incomes. This bill would provide common-sense solutions and needed reforms that will help programs better serve people with the most urgent affordable housing needs.”

We also heard from local leaders and planning practitioners. The U.S. Conference of Mayors called it “a landmark piece of legislation that addresses the urgent need to make substantial movement on the national housing crisis.” And the American Planning Association saw it as a “landmark bill that will help planners provide critical insights and locally led reforms needed to unlock housing opportunity in communities across the nation.”

Upon its passage, the National Association of Realtors issued this statement: “This law combines nearly 50 carefully negotiated measures to increase housing supply, improve affordability, expand access to homeownership, strengthen housing finance, and support veterans.”

Thinking optimistically about matters, perhaps the 21st Century ROAD (full name, Renewing Opportunity in the American Dream) to Housing law can serve as a roadmap for overcoming other seemingly intractable issues before our Congress.

Joe Nathanson is the retired principal of Urban Information Associates, a Baltimore-based economic and community development consulting firm. Since 2001, he has written a monthly column for The Daily Record and can be contacted at [email protected]