Key facts
- The 21st Century ROAD to Housing Act has passed both the House and Senate with significant bipartisan margins.
- The bill's final status depends on President Trump's decision to sign, veto, or allow it to become law without his signature.
- A pocket veto is a potential outcome if Congress adjourns in a manner that prevents the bill's return to the President.
- The ROAD Act aims to address regulatory burdens that account for an average of 40.6% of multifamily development costs.
- Potential impacts include raising FHA-insured multifamily loan limits, establishing categorical exemptions for certain environmental reviews, and increasing flexibility for CDBG funds.
- The bill requires certain jurisdictions to report on land-use policies that could affect multifamily zoning and development.
The 21st Century ROAD to Housing Act, having passed both chambers of Congress with significant bipartisan support, awaits final enactment, with its fate resting on President Trump's decision to sign, veto, or allow it to become law without his signature. A pocket veto remains a possibility if congressional adjournment mechanics prevent the bill's return.
The legislation is seen as potentially transformative for multifamily developers and investors, aiming to alleviate regulatory burdens that account for a substantial portion of development costs. A 2022 analysis indicated that regulation constitutes an average of 40.6% of multifamily development expenses, with building code changes (11.1%) and site work fees (8.5%) being major components.
Key provisions of the ROAD Act that could impact feasibility include raising outdated FHA-insured multifamily loan limits, establishing categorical exemptions for certain environmental reviews to reduce project delays, and increasing flexibility for Community Development Block Grant (CDBG) funds to support new affordable housing construction. The bill also mandates reporting from certain jurisdictions on land-use policies that could encourage multifamily development.
Recent research from HUD and Purdue University found that specific multifamily building code revisions between 2009 and 2021 increased construction costs by 9.9%, translating to higher break-even rents. This underscores the importance of the ROAD Act's potential to address cost barriers, moving beyond solely focusing on rent versus income or zoning issues.