Key facts
- Congress is close to passing the 21st Century ROAD to Housing Act, a bipartisan housing package.
- The bill aims to increase housing supply by easing permitting regulations and restricting large investors from buying single-family homes.
- Federal grants will be tied to housing construction to incentivize local governments.
- The legislation expands the definition of manufactured housing to encourage more construction.
- The bill does not allocate new federal funding for housing programs.
- Eight Republican senators opposed the bill, seeking more comprehensive permitting reform or arguing housing is a local issue.
Congress is on the verge of passing a bipartisan housing package, the 21st Century ROAD to Housing Act, after months of negotiations. The bill aims to address the nation's housing crisis by increasing supply through regulatory changes and restrictions on large investors.
The legislation includes over 45 provisions designed to help communities build more housing, provide grants for rebuilding aging homes, and encourage the conversion of vacant buildings. It also expands the definition of manufactured housing and creates federal incentives for local governments to increase construction by tying federal grants to housing development. A key provision restricts large investors, such as private equity firms, from purchasing new single-family homes, a point of contention that was resolved between House and Senate Republicans.
Proponents, including Sen. Elizabeth Warren (D-Mass.) and Baillee Brown of Inclusive Abundance, view the bill as a significant step towards solving the underlying issues driving high housing costs. However, the bill notably lacks substantial new government funding for affordable housing programs, a point of concern for some Democrats like Sen. Chris Murphy (D-Conn.), who described it as a "marginally helpful" first step.
Opposition came from eight Republican senators. Sen. Alan Armstrong (R-Okla.) argued the bill's approach to permitting reform, by waiving the National Environmental Policy Act (NEPA) for housing construction, was insufficient. Sen. Rick Scott (R-Fl.) contended that housing is a local issue and that balancing the budget to lower interest rates would be more effective in reducing costs.
The Senate is expected to hold a final vote on the housing package on Monday night, with the House to follow later in the week.