21st Century ROAD to Housing Act Crosses the Finish Line
It's the most significant piece of housing legislation in decades.
The 21st Century ROAD to Housing Act has officially become law, following the 10-day waiting period that went into effect after President Trump refused to sign it. Hailed as the most significant bipartisan housing legislation in decades, the bill combines provisions from more than 60 pieces of housing legislation, including the House-introduced Housing for the 21st Century Act and the Senate-sponsored ROAD to Housing Act.
The bill, boasting widespread industry support, had previously passed the Senate and House for a second time on June 22 and 23, respectively. It was sent to President Trump’s desk on June 29, but he declined to sign it unless Congress passed the SAVE America Act first.
On July 10, the president reiterated that he would not sign the act but signaled that he was not likely to veto it, either.
Big reforms on the way
In its final form, the act includes sweeping provisions intended to spur the large-scale development of houses and apartments, alongside restrictions on institutional investors from buying single-family homes.
Key development-oriented reforms in the bill include streamlining the National Environmental Policy Act to allow for faster compliance; the creation of a local housing supply grant program run by the Department of Housing and Urban Development; and elimination of the permanent chassis requirement for manufactured housing.
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Additionally, the bill raises public-welfare investment caps from community banks from 15 to 20 percent, a move that could better capitalize Low Income Housing Tax Credit-based affordable projects.
The bill’s most talked-about—and controversial—component is the ban on the purchase of single-family homes by institutional investors, which are required to sell the properties to individual buyers within seven years. The codified version makes exceptions for build-to-rent properties. It also creates a HUD-based single-family renter assistance resource, intended to spotlight potential mismanagement by institutional owners.
The road ahead
The immediate reception to the bill’s passage from the industry and housing advocacy organizations was positive, as some observers noted that implementation would ultimately determine the impact.
“This legislation equips states, local leaders and housing experts with the tools needed to turn plans into homes, but passage is only the beginning,” reflected Shaun Donovan, CEO of Enterprise Community Partners and a former Secretary of Housing and Urban Development. Enterprise worked with lawmakers on numerous provisions, including the loosening of the public welfare investment test as well as the expansion of the Rental Assistance Demonstration program cap by 100,000 units.
“This legislation’s impact will depend on how effectively federal agencies, state governments, localities, and housing practitioners put these tools to work,” Donovan said. “The real measure of success is results—more homes built, greater affordability, and meaningful improvements for families across the U.S.”
