Key facts
- A "ROAD 2.0" bill is being considered to build on the 21st Century ROAD to Housing Act.
- The proposal includes establishing "Right to Build Zones" for automatic by-right housing approval.
- Federal transit grants could be directed to communities adopting pro-housing measures near transit.
- The agenda suggests exempting affordable housing from Build America, Buy America requirements.
- Tariffs on imported steel, lumber, aluminum, and equipment may be targeted for relief.
- A federal revolving loan fund is proposed to fill financing gaps for housing construction.
Nearly three months after the 21st Century ROAD to Housing Act was enacted, housing industry leaders and lawmakers are reportedly discussing a "ROAD 2.0" bill. A 95-page document from the 40-member, bipartisan Build America Caucus outlines potential policies for this follow-up legislation, focusing on expanding housing development sites, reducing construction costs, and improving access to capital.
The proposals aim to incentivize state and local governments to adopt pro-housing reforms. Key areas include easing local constraints on where new housing can be built, such as through "Right to Build Zones" where housing would receive automatic approval if it complies with standardized rules. The federal government could incentivize municipalities to establish these zones by offering payments for completed homes exceeding recent construction levels.
Another focus is transit-oriented development, with proposals to direct federal transit grants to communities that allow more housing near transit stops. The agenda also suggests leveraging underused federal property, owned by agencies like the GSA and U.S. Postal Service, for housing development.
To lower construction costs, the document suggests targeted tariff relief for imported materials like steel, lumber, and aluminum, and exempting affordable housing projects from Build America, Buy America requirements, which can add significant costs. Modernizing building codes and streamlining regulations for transporting mass timber are also proposed.
Regarding financing, the agenda addresses tight credit conditions and higher interest rates. It proposes establishing a federal revolving loan fund to support projects that are too small, complex, or unconventional for standard underwriting. Additionally, it calls for modernizing FHA financing processes, which are currently slow and administratively burdensome, particularly for multifamily construction loans.