With overwhelming bipartisan support, Congress passed the 21st Century ROAD to Housing Act, and the law has officially been enacted. The landmark bill represents the most comprehensive federal housing legislation in a generation and marks a pivotal moment for expanding housing affordability and preparing communities for the future.
This win took years to achieve. Advocates across the country, including our own federal policy team, worked hard to bring this bill over the finish line. Enterprise Community Partners applauds our congressional partners for championing and supporting this legislation, and we thank the many other partners who helped shape it.
What is it?
The legislation includes 47 provisions aimed at boosting housing supply and improving affordability. It encompasses a broad array of program reforms, incentives, and regulatory changes. As authorizing legislation, there is no federal funding tied to it. We’ll need federal appropriations for new programs to get off the ground and to fully realize the promise of many of the provisions it includes.
Why does it matter?
If we continue building support for the solutions included in 21st Century ROAD to Housing and implement them effectively, we'll create new opportunities and access for families and individuals across the country at a moment when housing affordability is one of the defining issues of our time.
The legislation lets us scale the proof points that have emerged from work in communities of all sizes and make housing affordability a reality for the American people.
What happens next?
The bill’s passage is just the beginning. The impact of this legislation will depend on what happens next. It means that, from this moment forward, our partnerships and collaboration are more important than ever. The true measure of our success will be to fully implement and build support for the range of solutions represented here and beyond.
The 21st Century ROAD to Housing is a downpayment on the future — a future where everyone has a quality, affordable, stable place to live and the opportunities they need to thrive.
Key Highlights in this Legislation
Enterprise worked closely with members of Congress, their staff, other advocates, and stakeholders across the country to ensure the legislation included a range of solutions for the communities we work alongside. Here we highlight our top priorities and some key components of the new law:
Housing Supply Frameworks
Directs HUD to publish guidelines and best practices for state and local zoning to support the production of adequate housing to meet the needs of communities. (Section 107)
Community Investment and Prosperity Act
Raises the cap on bank public welfare investments, including those in affordable housing and community development projects, from 15% to 20%, making it easier for banks to invest in more in affordable housing. (Section 203)
Rental Assistance Demonstration Program
Makes the Rental Assistance Demonstration (RAD) program permanent and lifts the RAD cap by 100,000 units. Expands tenant protections in RAD buildings by including the adoption of a mandatory tenant lease and management plan addendum for properties undergoing a RAD conversion. Requires HUD to evaluate and publicly publish findings on RAD’s performance. (Section 212)
Housing Supply Expansion Act
Removes the requirement for manufactured housing to be built with a permanent chassis, making manufactured homes cheaper and allowing modular construction to be certified under the Manufactured Home Construction and Safety Standards (HUD’s Code) rather than local building and/or energy efficiency codes. (Section 301)
Choice in Affordable Housing Act
Aims to reduce delays in HUD inspections by allowing housing units financed through certain federal housing programs — the Housing Credit, HOME, and RHS programs — to automatically meet Housing Choice Voucher (HCV) inspection requirements if they have passed an inspection within the past year. Also allows new landlords to request advance inspections, helping to expand options for people using housing vouchers and incentivizing greater landlord participation in the HCV program. (Section 405)
HOME Investment Partnerships Reauthorization and Reform Act
Permanently reauthorizes the HOME Investment Partnerships Program, which has operated without formal authorization since 1994, while expanding access and flexibility to support affordable homeownership. It would also allow HOME to be used for certain infrastructure activities while simplifying program administration through streamlined Section 3, inspections, and environmental reviews. Additionally, it directs HUD to study the impact of Build America, Buy America (BABA) requirements on HOME and update guidance based on the findings. (Section 501)
Rural Housing Service Reform Act
Reforms USDA’s single- and multifamily housing loan and grant programs, most importantly by allowing multifamily properties funded through the Section 515 program to continue receiving USDA Section 521 rental assistance even after the mortgage on the property is paid off (“decoupling”). It also improves single-family loan programs and authorizes several longstanding pilot programs for technical assistance and housing preservation. (Section 502)
Reforming Disaster Recovery Act
Authorizes the Community Development Block Grant (CDBG)-Disaster Recovery (DR) for three years. CDBG-DR will support activities related to disaster recovery, long-term recovery, restoration of housing and infrastructure, economic revitalization, and mitigation. CDBG-DR grants will be awarded to states, localities, and Tribes. (Section 504)
What else is included in the legislation?
The bill also:
- Authorizes HUD to implement a multi-year demonstration project that will test and evaluate an opt-out approach to the Family Self-Sufficiency program,
- Authorizes a new Moving to Work program cohort among PHAs,
Ties some localities’ CDBG funding to their housing production, including bonuses for accelerated homebuilding, - Removes development barriers,
- Empowers jurisdictions to streamline environmental review,
- Simplifies National Environmental Policy Act (NEPA) regulations for small, infill, and most RHS-funded projects,
- Makes construction an eligible use under CDBG,
- Creates a pilot for grants for regional housing planning and community development,
- Creates a pilot for home repairs,
- Directs HUD, USDA, and the VA to share information and identify opportunities for collaboration to streamline the implementation of their housing programs.
Where can we learn more?
Don’t miss these resources:
