Key facts
- The 21st Century ROAD to Housing Act, effective July 11, aims to increase housing supply.
- The law includes provisions to streamline federal reviews and reduce regulatory burdens.
- It supports factory-built housing, including manufactured homes, by removing permanent chassis requirements.
- The act expands financing options for accessory dwelling units and manufactured homes.
- Provisions encourage local governments to streamline housing development processes.
The 21st Century ROAD to Housing Act, which became effective on July 11, introduces a comprehensive set of provisions designed to increase the nation's housing supply by reducing regulatory hurdles and streamlining development processes. The nearly 400-page bill targets various aspects of housing construction, from federal environmental reviews to supporting factory-built homes and incentivizing local governments.
The act aims to make building homes more efficient and cost-effective by simplifying processes across federal, state, and local levels. Several sections focus on streamlining environmental reviews for federally funded projects, particularly those for affordable housing. This includes directing agencies like the USDA and HUD to coordinate reviews and establishing joint environmental review frameworks. Specific provisions exempt certain rural housing projects from National Environmental Policy Act (NEPA) requirements and simplify NEPA compliance for small-scale and infill housing projects.
Significant provisions are dedicated to supporting manufactured and modular housing. The bill ends the permanent chassis requirement for manufactured homes, which industry leaders believe will enhance design flexibility and market acceptance. It also extends the PRICE Grant Program for seven years to support manufactured housing communities and updates federal rules to streamline accessory dwelling unit (ADU) construction and financing for manufactured homes. Furthermore, the act directs HUD to identify and remove barriers to factory-built housing, including exploring a standardized building code.
Other measures include requiring Community Development Block Grant recipients to maintain public databases of undeveloped land parcels, allowing HUD to favor grant applicants in designated opportunity zones, and creating a pilot program to convert vacant buildings into housing. The FHA is also mandated to increase statutory multifamily loan limits for the first time since 2003, updating its formula to align with building costs.