U.s. House Unveils Housing For The 21st Century Act

The Housing for the 21st Century Act — the U.S. House’s version of the Senate-approved ROAD to Housing Act — was unveiled Wednesday.

Led by sponsors including Chairman French Hill (R-Ark.), Ranking Member Maxine Waters (D-Calif.), Chairman Mike Flood (R-Neb.) and Ranking Member Emanuel Cleaver (D-Mo.), legislation aims to boost housing development and improve affordability by reforming programs deemed to be outdated and cutting regulation.

“Our Committee is dedicated to finding new ways to foster a home building and buying environment where achieving the American Dream is in reach for our families across the nation,” said Hill. “Our goal is to chart a path forward toward greater development capacity and a simplified regulatory framework.”

The legislation proposes a wide range of changes to how housing is built, regulated and supported.

It includes measures intended to make homebuilding faster and less costly — such as encouraging states and cities to update zoning rules, supporting accessory dwelling units (ADUs) and small multifamily buildings and offering grants for pre-approved design plans.

Housing leaders voice support

Isaac Boltansky — managing director, head of public policy at Pennymac — said patience is key while waiting to see tangible results from any federal action.

“We are encouraged by the bipartisan, bicameral focus on housing affordability,” he said. “The reality is that there is no single switch Congress can flip to solve this crisis. If there were, it would have been done by now. Instead, this package focuses on necessary, targeted, technical tweaks that can lead to incremental improvements on several key fronts.

“While there are open policy and procedural questions given the split chambers, we remain cautiously optimistic that a constructive housing package can reach the President’s desk next year.”

Additional provisions include revisiting safety standards for mid-rise buildings, streamlining certain environmental reviews and adjusting FHA multifamily loan limits to reflect higher construction costs.

Updates to several federal housing programs are also included.

The bill would give communities more flexibility in how HOME funds are used, require cities receiving federal grants to report on local land-use policies that may hinder housing production and expand rural home repair loan options.

Scott Olson, executive director at the Community Home Lenders of America (CHLA), voiced his support for the bill.

“CHLA is heartened to see this bi-partisan housing legislation,” he said. “While the bill is tilted more towards affordable rental housing than homeownership, everything we can do to build more housing is constructive — and will help temper spiraling increases in both rents and home prices.”

More affordable housing options

Additionally, the legislation seeks to broaden affordable housing criteria by updating the definition of manufactured homes to include newer, factory-built models and by studying the challenges surrounding small mortgages, which are often difficult for lower-income buyers to obtain.

“By modernizing outdated housing programs, reducing unnecessary barriers to development and increasing flexibility for local communities, the Housing for the 21st Century Act helps create the conditions needed to build and preserve more affordable homes across America,” said National Housing Conference President and CEO David Dworkin. “The bill also appropriately emphasizes transparency, consumer protections and accountability.”

Several provisions focus on renters and homeowners — such as changes to how veterans’ disability benefits are counted for housing eligibility, adjustments to housing counseling programs and creation of a national eviction helpline for tenants in federally assisted housing.

A pilot allowing some low-income families to save more of their earnings without immediately affecting their rent is also included.

The bill also adds oversight requirements, such as annual testimony from housing officials, increased contract transparency for public housing authorities and a federal review of the New York City Housing Authority’s operations.

“MBA is a strong advocate for policies that boost housing supply and improve affordability,” said Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit. “We will work with House and Senate leaders on both sides of the aisle to reconcile differences and to build momentum toward pushing meaningful legislation across the finish line as soon as possible.”