U.s. House Votes To Pass Housing For The 21st Century Act

On Monday, the House voted to pass a landmark bipartisan housing affordability package by an overwhelming 390-9 margin. 

The legislation, part of a bipartisan federal push to improve housing affordability, is the House counterpart to the Senate’s ROAD to Housing Act. Both bills aim to boost housing supply and improve affordability by reducing red tape and modernizing federal housing programs. 

The Housing for the 21st Century Act is sponsored by Financial Services Committee Chairman French Hill (R-Ark.), Ranking Member Maxine Waters (D-Calif.), Rep. Mike Flood (R-Neb.) and Rep. Emanuel Cleaver (D-Mo.). The bill previously advanced in the House with a 50-1 vote in December after a markup by the Financial Services Committee.

According to a statement by Congressman Mike Flood, “America’s significant housing shortage is locking entire generations out of homeownership. As the Chairman of the Housing & Insurance Subcommittee, I’m proud of the broad support this housing package received every step of the way. Today’s vote shows that bipartisanship is still alive in Washington and continues to be crucial to solving our shared challenges. Now that the legislation has passed the House floor, I look forward to working with our colleagues in the Senate to get housing affordability legislation to President Trump’s desk swiftly.”

Dennis Shea, executive director of the J. Ronald Terwilliger Center for Housing Policy at the Bipartisan Policy Center, in an interview with The Builder’s Daily, noted the strong bipartisan support for the legislation. 

“We view housing as a non-partisan, bipartisan issue. High housing costs are impacting communities of all kinds throughout the country—impacting red states, impacting blue states. So it’s really not just a red or blue issue; it’s an American issue. Housing is a bit of a bright, bipartisan spot in an otherwise polarized Washington,” Shea said. 

Key provisions in the Housing for the 21st Century Act

The HOME Reform Act, a key component of the Housing for the 21st Century Act, would initiate the first significant reform to the HOME program since its creation in 1990. It would reduce regulatory barriers for developers, most notably by limiting duplicative environmental reviews in the HOME program. 

The legislation would also exempt new categories of development under the HOME program from review under NEPA, including:

• New construction on infill lots.
• New construction and rehabilitation projects of 15 units or fewer. 
• Acquisition of real property for affordable housing.

The bill additionally creates planning and implementation grants for regional agencies that want to update local codes, and would fund pre-approved housing pattern books to speed permitting. 

It directs the U.S. Department of Housing and Urban Development to develop model zoning frameworks, and would require the Government Accountability Office and the U.S. Comptroller General to spearhead a study to evaluate a standardized federal building code, with attention to cost efficiency and construction timelines.

The Housing for the 21st Century Act additionally aims to streamline manufactured housing development by revoking the permanent chassis rule and establishing HUD as the chief federal regulator of manufactured housing construction and safety standards. Tim Larson, President and CEO of Champion Homes, one of the largest builders of manufactured housing nationwide, endorsed these provisions in an earnings call earlier this month. 

“We’re encouraged that the ability to have a HUD-code home without a chassis is still part of the legislative process,” Larson said. “Obviously, you’re seeing out of Washington, a lot of focus on housing affordability, increasing the supply of affordable homes.”

The National Association of Home Builders, in a statement, also endorsed the legislation. 

“This housing package takes much-needed steps toward addressing our nation’s critical lack of housing supply. NAHB is encouraged that, among other helpful changes, the legislation has key provisions related to land-use and zoning, regulatory reforms, and financing tools. For too long, restrictive zoning and land-use policies have constrained residential construction,” the statement read. 

The legislation would additionally modernize the HOME Investment Partnerships Program by expanding the income eligibility and maximum median purchase price to better match today’s market conditions. 

Other provisions include expanding the eligible uses of Community Development Block Grants to include new construction. There would also be new resources for vulnerable renters, such as increased oversight of HUD-funded housing counselors and the establishment of a federal eviction assistance helpline.

“We are very heartened by the effort. It’s a recognition that high housing costs are a major issue in the United States, and that these costs are rooted in a lack of supply,” Shea said.