The U.S. House of Representatives has passed the 21st Century ROAD to Housing Act by a vote of 358-52, following passage by the Senate on Monday by an 85-5 vote. President Trump is expected to sign the measure into law as soon as Wednesday.
As passed by both houses of Congress, the Act still includes a section restricting institutional ownership of single-family homes, the CRE Finance Council pointed out. However, build-to-rent housing is exempt from the restriction, and large investors are no longer required to sell their current holdings. CREFC provides a more detailed analysis of the single-family ownership section here.
Consistent with all prior versions of the legislation, the bill as enacted by Congress includes a key proposal to increase banks’ public welfare investment (PWI) cap from 15% to 20%. The Affordable Housing Tax Credit Coalition said the increase will expand the availability of private capital for affordable housing development and help maximize the impact of the expansion of the Housing Credit enacted in the One Big Beautiful Bill Act last year. The PWI cap was last increased in 2006.
In a joint statement issued when a bicameral agreement on the legislation was announced last week and reissued following the final House vote Tuesday, the National Multifamily Housing Council and National Apartment Association lauded the Act. “The Act includes many meaningful reforms that will help modernize federal housing programs, reduce barriers to development and encourage the production and preservation of more housing nationwide. This revised legislation will help communities expand housing supply, improve affordability and create more pathways to both rental housing and homeownership.
“The amended 21st Century ROAD to Housing Act is a key win for members of Congress, the Administration and, most importantly, the American people.”
Enterprise Community Partners CEO Shaun Donovan, a former Secretary of Housing and Urban Development, also issued a statement applauding the Act. The organization had helped to shape key provisions in the bill, including expanding the Rental Assistance Demonstration program, HOME program reauthorization, extension of CDBG-DR, increasing the PWI cap, and the Rural Housing Service Reform Act to expand protections for rural communities.
“But passage is only the beginning,” said Donovan. “This legislation’s impact will depend on how effectively federal agencies, state governments, localities, and housing practitioners put these tools to work. The real measure of success is results—more homes built, greater affordability, and meaningful improvements for families across the U.S.”
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