Key facts
- A bipartisan housing bill has become law, designed to address the nation's housing supply crisis.
- Critics worry that the Department of Housing and Urban Development (HUD) is too understaffed to implement the new law effectively.
- HUD has experienced significant staff reductions in recent years, impacting its capacity to issue new rules and programs.
- The new law mandates HUD to expand, reform, and create new affordable housing programs.
- No operational funding for HUD staffing was included in the legislation, relying on future appropriations.
- Advocacy groups are offering to help HUD by providing draft regulations to aid implementation.
Washington has enacted a significant bipartisan housing bill designed to address the nation's urgent housing supply crisis, but concerns are mounting over the capacity of federal agencies, particularly the Department of Housing and Urban Development (HUD), to implement its numerous provisions.
The 21st Century ROAD to Housing Act, which passed with overwhelming support, aims to make building and buying homes cheaper and easier. However, HUD has experienced substantial staff reductions in recent years, with its program offices shedding over 1,800 employees since 2023. This has led to worries among lawmakers and former officials that the agency is too understaffed to quickly develop and issue the necessary new rules and reform existing programs.
Senator Thom Tillis (R-N.C.) noted that while HUD Secretary Scott Turner is capable, the underlying organization needs to be robust enough to handle the workload. Representative Emanuel Cleaver, the top Democrat on the House Financial Services panel’s housing subcommittee, expressed that the reality of implementation challenges has set in after the initial celebration of the bill's passage.
The legislation directs HUD to expand, reform, and create new programs, including updating standards for manufactured homes and reforming block grants for low-income housing development. Despite these mandates, HUD's budget estimates indicate continued staff reductions are planned for 2025, although some limited backfills for critical positions are being hired. A union representing HUD staff warned that these shortages will create an "unnecessary and self-inflicted bottleneck."
A HUD spokesperson, however, stated that the department possesses the organizational capability to meet its legal obligations. Senate Banking Chair Tim Scott (R-S.C.) and House Financial Services Committee Republicans also expressed confidence in the administration's execution abilities.
In response to potential implementation hurdles, external groups like the National Housing Conference are mobilizing to assist HUD. This coalition plans to use AI to help draft regulations and offer them to HUD and other impacted agencies, recognizing the loss of subject-matter experts within the government. Marisa Calderon of Prosperity Now highlighted that the coalition will provide rulemaking language as a starting point.
Past staff cuts at HUD were reportedly driven by a focus on rooting out "waste, fraud and abuse." While some lawmakers believe HUD will not intentionally obstruct the law, they emphasize the need for functional agencies with adequate staff. Senator Elizabeth Warren (D-Mass.) has voiced criticism, suggesting HUD under Turner's leadership has not done enough to boost housing supply.
Experts acknowledge that implementing a 59-provision law with various deadlines will take years, even under ideal conditions. The complexity of the housing shortage, coupled with factors like zoning regulations at state and local levels, adds to the challenge. Furthermore, the housing package did not include specific funding for staffing, leaving implementation dependent on future congressional appropriations. Lawmakers, such as Representative Mike Flood, plan to proactively engage with HUD to ensure congressional intent is met.