Congress Advances Bipartisan Housing Package
Congressional leaders have advanced the final amended version of the 21st Century ROAD to Housing Act, a bipartisan housing package led by Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) in addition to House Financial Services Committee Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA). On June 22, the Senate passed the 21st Century ROAD to Housing Act by an overwhelming bipartisan vote of 85–5. The following day, the House passed the bill after a final vote of 358–32.
As the Advocate goes to print, the legislation is awaiting the President’s signature. It is on the President’s desk and expected to become law, though the timing is unclear. Members should consult PHADA’s social media and Breaking News page for the latest updates.
Key Provisions and PHADA Priorities
The bill is largely focused on supply-side housing reforms to increase production and reduce barriers to development. Among other provisions, the legislation would streamline federal permitting and regulatory requirements, encourage local governments to adopt zoning policies that support additional housing development, limit certain institutional investor purchases of single-family homes, and simplify environmental review requirements.
PHADA supports several provisions included in the package:
- Sec. 212 raises the RAD cap from 455,000 to 555,000 units.
- Secs. 501 and 204 reauthorize and reform HOME, require HUD to study the impact of Build America, Buy America (BABA) requirements on HOME-funded projects, and add new construction as an eligible Community Development Block Grant (CDBG) activity.
- Sec. 405 would aim to reduce HUD inspection delays by allowing some recently inspected units to satisfy voucher requirements and by permitting pre-inspections.
- Secs. 504 and 801 reauthorize CDBG-Disaster Recovery (CDBG-DR), and improve HUD–USDA-VA coordination.
- Sec. 203 raises the public welfare investment cap of banks’ capital from 15 percent to 20 percent.
- Sec. 404 creates a pilot escrow opt-in program under the Family Self-Sufficiency program.
For additional details on the bill’s provisions, see the section-by-section summary here.
Concerns Remain
PHADA continues to have concerns with the bill’s Moving to Work (MTW) provisions. The legislation would establish a new MTW cohort with limited flexibility while also adding unworkable reporting requirements on existing agencies. PHADA and other industry partners have expressed concern that these requirements could increase administrative burden while providing fewer benefits to HAs and residents.
While the package includes several promising reforms aimed at increasing housing production and reducing development barriers, it does not include additional funding. At the same time, the House FY 27 proposed budget is considering significant reductions to HUD programs, raising concerns that HAs may have fewer resources to meet the immediate needs of extremely low-income households.
Bipartisan Legislation Addressing BABA Challenges Introduced
On June 14, Representatives Mike Flood (R-NE) and Maggie Goodlander (D-NH) introduced the bipartisan Build Housing Affordably Act to address Build America, Buy America (BABA) implementation challenges affecting affordable housing projects. A bill markup is expected in July. Although PHADA supports the goals of building domestic manufacturing, members continue to report that BABA requirements can increase costs and delay construction projects.
Stakeholders have also raised concerns about HUD’s waiver process. As of June, more than 3,000 BABA waiver requests had been submitted to the Made in America office (MIAO), while HUD had approved only 28 waivers. PHADA and other industry groups argue that the current process is not moving quickly enough to meet project timelines.
The legislation would require HUD to study the effects of BABA on affordable housing projects and report to Congress. It would also exempt covered projects from BABA requirements until 60 days after the report is submitted and establish a 90-day deadline for waiver review, after which a waiver would be deemed approved if the review is not completed.
At PHADA’s Annual Convention and Exhibition (ACE26) on June 10 in Chicago, the Association’s Legislative Committee voted unanimously to endorse the Build Housing Affordably Act. PHADA will continue to keep members updated as this important legislation is considered by Congress.
PHADA Legislative Committee Bill Endorsements
In addition to the Build Housing Affordably Act, the Legislative Committee unanimously voted to endorse three additional pieces
of legislation:
- Facilitating Accelerated Supply of Targeted Housing (FAST Housing) Act (H.R. 8171) was introduced by Reps. Juan Ciscomani (R-AZ) and Mike Quigley (D-IL). The bill would create a HUD pilot program that offers competitive grants to up to 15 communities with significant housing shortages expecting major federal investments. The purpose is to encourage zoning, permitting, and land-use reforms that speed production of workforce and affordable housing. Grant funds could be used to support the development of affordable and workforce housing. To be eligible, communities would be required to remove or streamline barriers to housing construction. However, it does not provide broad new operating funding.
- Foster Youth Housing Opportunity Act (H.R. 7432) was introduced by Reps. Darin LaHood (R-IL) and Gwen Moore (D-WI). The bill would allow greater coordination between child welfare and federal housing programs so that youth aging out of foster care can more easily access housing vouchers and supportive services. It would also allow states to use related funds more flexibly for housing-related support, including assistance with security deposits and other move-in costs. The goal is to better align PHA-administered housing programs with Health and Human Services (HHS) systems
- serving foster youth transitioning out of care.
- RAD Conversion Continuity Act (H.R. 7869) was introduced by Rep. Daniel Goldman (D-NY). The bill aims to allow properties that undergo Rental Assistance Demonstration (RAD) conversion to maintain any special residential targeting designations (such as elderly or elderly/disable) after their conversion (retaining such targeting would be voluntary).
Members not currently serving on a PHADA committee are encouraged to get involved and consider joining. PHADA committees are open to all Executive Directors, or their designees, who want to engage in the Association’s work and help advance priorities. Interested members can contact Norma Bellew at: nbellew@phada.org. PHADA will continue to keep members informed of legislative developments through Breaking News, eBlasts, social media, and the Advocate.