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Congress passes 21st Century ROAD to Housing Act

Created at 3 Aug · 7:06 AM1 source↑ Market-relevant
IN SHORT

Congress has enacted the 21st Century ROAD to Housing Act, aiming to address the nation's housing affordability crisis by removing regulatory obstacles and incentivizing zoning reform. The legislation provides new tools for multifamily housing construction and strengthens existing affordable rental production programs.

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Who's Involved

Congress
Enacted the 21st Century ROAD to Housing Act
Ron Terwilliger
Founder of J. Ronald Terwilliger Center for Housing Policy, Chairman Emeritus of Trammell Crow Residential
Congress passes 21st Century ROAD to Housing Act

↳ Why This Matters

The passage of the 21st Century ROAD to Housing Act marks a significant federal intervention aimed at alleviating the U.S. housing affordability crisis, potentially impacting millions of Americans by increasing supply and lowering costs.

Key facts

  • Congress has enacted the 21st Century ROAD to Housing Act.
  • The act aims to address housing affordability by removing regulatory obstacles.
  • It creates incentives for localities to reform zoning rules.
  • New tools are provided to support multifamily housing construction.
  • The Low-Income Housing Tax Credit will be expanded and strengthened.

For years, housing affordability has been a significant challenge in the United States, characterized by rapidly increasing rents, first-time buyers being priced out of markets, and families struggling to find adequate housing. The causes, including the aftermath of the Great Recession, restrictive zoning policies, and pandemic-related supply chain disruptions, were well-understood but largely unaddressed in Washington.

This situation has changed with the enactment of the 21st Century ROAD to Housing Act. The legislation is designed to tackle the housing shortage, which is measured in the millions of homes, by removing regulatory barriers that have hindered homebuilding and by creating incentives for local governments to reform zoning laws. The act also modernizes federal housing programs to better reflect current living and working patterns.

Specifically for the multifamily sector, the law introduces new financial tools intended to make apartment construction more feasible, addressing challenges posed by rising construction and financing costs. These measures, combined with recent expansions to the Low-Income Housing Tax Credit, are expected to contribute to increased housing supply and reduced costs over the long term.

While the legislation represents a significant step, it is acknowledged that it will not single-handedly solve the complex housing affordability crisis. The author emphasizes that continued efforts from mayors, local leaders, governors, the private sector, philanthropic organizations, and the construction industry itself will be crucial for its success. The 21st Century ROAD to Housing Act provides a stronger foundation, but its effectiveness will depend on how these stakeholders implement its provisions.

Frequently asked questions

It is a new piece of legislation passed by Congress aimed at addressing the U.S. housing affordability crisis by removing regulatory obstacles and incentivizing zoning reform.

The shortage is attributed to the Great Recession impacting homebuilders, restrictive zoning policies, and supply chain disruptions from the COVID-19 pandemic.

It provides new tools designed to make apartment construction more financially viable, addressing challenges like rising construction and financing costs.

What Happens Next

01Mayors and local leaders will implement zoning reforms.
02Governors will advance land-use policy reform.
03The private sector and philanthropy will support affordable housing initiatives.
04The industry will leverage new tools for multifamily construction.

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Cadence

How It Developed

Housing affordability was a long-standing issue with rising rents and home prices.
The Great Recession, restrictive zoning, and supply chain issues exacerbated housing shortages.
Congress passed the 21st Century ROAD to Housing Act.
The act aims to remove regulatory hurdles and incentivize zoning reform for homebuilding.
New tools are provided for multifamily housing construction.
The Low-Income Housing Tax Credit will be expanded and strengthened.
The legislation is expected to impact housing supply and costs over time.

Sources

T1
Congress finally acted on housing. Now the real work begins.HousingWire

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