During the government shutdown in the United States, the bipartisan “ROAD to Housing Act” was proposed and passed in the Senate on October 9th with 77 votes in favor and 20 votes against, moving one step closer to addressing the housing crisis in America.
This marks the first major bipartisan housing legislation in over a decade, focusing on increasing supply, streamlining processes, and enhancing the efficiency of federal housing programs. Various industry groups, including the National Association of Home Builders (NAHB), have expressed support and appreciation for this legislation.
The “ROAD to Housing Act” is part of the Senate version of the National Defense Authorization Act for Fiscal Year 2026, which covers $924.7 billion in defense spending. The next step involves negotiations with the House version of the National Defense Authorization Act, though the House version currently does not include this housing reform.
This extensive 315-page housing bill garnered support from Republican Senator Tim Scott and Democratic Senator Elizabeth Warren, passing unanimously with a 24-0 vote in the Senate Banking Committee in July.
The bill is a comprehensive package covering over twenty existing proposals, focusing on key provisions such as:
– Section 203, which requires the Department of Housing and Urban Development (HUD) to develop “best practices for increasing supply” at the state and local levels to facilitate easing zoning restrictions, reducing parking requirements, and expanding “by-right” provisions.
– Section 206, establishing a pilot program to incentivize Community Development Block Grant (CDBG) participation in various housing developments within jurisdictions (excluding states). It adjusts funding based on “housing supply growth performance,” offering bonuses for well-performing cities and minor reductions for underperforming ones.
– Section 207, streamlining environmental review processes and authorizing states, local governments, and tribal authorities to simplify reviews to promote housing development.
– Section 208, adjusting National Environmental Policy Act (NEPA) reviews for small-scale and infill housing projects, simplifying review processes and accelerating project construction.
– Section 210, implementing grant programs through HUD to support the adoption of pre-approved pattern books for various housing designs, encouraging medium to high-density housing near transportation hubs.
With pre-approved designs, local review and building permit issuance can follow expedited procedures, reducing development and design costs while accelerating the construction of affordable and mid-priced housing.
– Section 211, modifying the scoring system for the Federal Transit Administration’s (FTA) Capital Investment Grants (CIG) program. Applicants (cities or transit agencies) promoting “pro-housing” policies in walkable areas along transit lines receive additional points in the overall project evaluation.
– Section 501, permanently authorizing Community Development Block Grants for Disaster Recovery (CDBG-DR) and establishing a Disaster Management and Recovery Office within HUD to manage the program. This aims to expedite disaster relief funding, reduce delays due to changing regulations, and enhance support for low-income disaster victims.
– Section 502, reauthorizing and increasing funding for the HOME Investment Partnerships program with technical revisions to improve management and construction promotion. These are procedural and execution optimizations at the statutory level.
The HOME program is the federal government’s largest block grant dedicated to affordable housing for low-income families, providing annual allocations to states and eligible local governments for new construction, rehabilitation of rental units or owner-occupied homes, down payment assistance, or rental subsidies, offering flexibility.
After the full Senate vote, Senators Warren and Scott stated that this landmark legislation is the first of its kind in over a decade, emphasizing important measures to increase the national housing supply, enhance housing affordability, and strengthen oversight and efficiency of federal regulatory agencies and housing programs.
Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA), hailed the Senate’s passage of the bill as a victory for housing affordability and consumers.
Shannon McGahn, Executive Vice President and Chief Advocacy Officer of the National Association of Realtors (NAR), praised the bipartisan legislation passed by the Senate as addressing housing supply, affordability, and homeownership pathways.
Joel Berner, Senior Economist at Realtor.com, suggested that creating a national zoning law template can provide local policymakers supporting housing with more ammunition to reference federal guidelines and challenge cumbersome rules within their jurisdictions.
However, Berner expressed concerns about the legislation’s main challenge being that housing policy decisions are primarily made at the local level, making top-down reform difficult.
The bill now requires approval from the House of Representatives before reaching the President’s desk, but a vote has not been scheduled yet. House Speaker Mike Johnson stated that the House will not return to vote until an agreement is reached in the Senate on reopening government expenditures.