The United States Senate has approved a major bipartisan housing measure designed to reduce regulatory barriers and expand federal programs that support affordable housing development.
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Lawmakers passed the 21st Century ROAD to Housing Act on Thursday, sending the legislation back to the United States House of Representatives for final approval. The bill focuses largely on policy reforms that update existing housing programs and streamline certain federal requirements that developers say can slow housing construction.
Sponsored by Tim Scott, a Republican senator from South Carolina, the legislation has gained support from a wide coalition of local government organizations and housing advocates.
Unlike some federal housing proposals, the measure does not override local zoning authority or impose unfunded mandates on cities and municipalities.
The legislation arrives at a time when many local governments across the United States are grappling with severe housing shortages and rising affordability challenges.
“In our cities, mayors are doing everything we can to increase supply and support affordability,” said David Holt, president of the U.S. Conference of Mayors and mayor of Oklahoma City, in a statement. “But we cannot solve this challenge alone. We need a federal partner.”
The legislation combines provisions from several housing bills introduced in both chambers of Congress in recent years. According to Scott’s office, the measure incorporates roughly 84% of the housing provisions previously approved by the House.
One of the most significant components of the proposal involves reforms to the HOME Investment Partnerships Program, the federal government’s largest affordable housing construction initiative.
Under the bill, the program would be modernized to better support workforce housing development while simplifying how funds are distributed to local governments and developers.
The legislation would also launch a pilot program designed to convert vacant or underused buildings into residential housing, a strategy many cities have begun exploring as office vacancy rates rise in urban areas.
In addition, grants issued through the program could be used for infrastructure improvements tied to new housing projects, helping communities finance utilities, transportation access and other supporting systems needed for development.
The bill would also broaden how cities can use funding from the Community Development Block Grant Program, a long-standing federal initiative that supports community development projects.
Historically, these funds have largely been used for housing repairs and rehabilitation efforts. The proposed legislation would expand their use to include construction of new housing units for low- and moderate-income residents.
According to National League of Cities legislative director Michael Wallace, the bill avoids placing new financial burdens on municipalities.
The legislation also attempts to address regulatory hurdles that can drive up construction costs. Officials at the U.S. Department of Housing and Urban Development estimate that regulatory requirements account for roughly 25% of the cost of building a new single-family home and 40% of the cost of multifamily housing developments.
One provision in the bill would streamline environmental reviews required under the National Environmental Policy Act by allowing federal agencies to rely on state or local environmental reviews when they meet federal standards.
The legislation also includes reforms aimed at reducing construction costs for certain housing types.
For example, the measure would eliminate or adjust some federal requirements that can add expense to manufactured housing and modular housing projects, according to analysis from the Bipartisan Policy Center.
Supporters say these changes could encourage faster development of lower-cost housing units while maintaining necessary safety and environmental standards.
The bill’s passage has also been welcomed by the Democratic Mayors Association, which emphasized the need for continued federal involvement in addressing the nation’s housing shortage.
“Passing the 21st Century ROAD to Housing Act is an important step forward in addressing the need for affordable housing, which is among the most urgent challenges facing our communities,” the organization stated.
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Housing affordability has become a major policy focus across the country as rising construction costs, population growth and limited housing supply continue to strain local markets.
City leaders and housing experts say expanding federal support programs while reducing regulatory barriers could help accelerate new development and improve access to affordable housing.
If the House approves the measure, the legislation could become one of the most significant federal housing policy updates in recent years, particularly for local governments working to address persistent housing shortages.
Originally reported by Ryan Kushner, Editor in Smart Cities Dive.
