The 21st Century ROAD to Housing Act officially became law this week with overwhelming bipartisan support. It became law automatically without President Donald Trump’s signature because he neither signed nor vetoed the legislation within the 10-day window while Congress was in session.
This is the most significant federal housing package in a generation, the culmination of nearly 2 years of work. It includes nearly 50 individual housing measures “designed to increase housing supply, improve affordability, expand access to homeownerhip, strengthen housing finance and support veterans.”
Key Provisions of the Law:
- Investor Restrictions: It prevents large institutional investors (defined as controlling 350 or more single-family homes) from purchasing new single-family homes. Exceptions are made for build-to-rent developments and major renovation programs.
- Streamlined Development: It cuts construction costs by relaxing certain National Environmental Policy Act (NEPA) requirements for infill housing and simplifying environmental reviews.
- Disaster Recovery Permanence: It enacts a long-term, three-year authorization for the Community Development Block Grant-Disaster Recovery (CDBG-DR) program to ensure housing recovery aid is consistently available.
- Modernized Programs: It updates the HOME Investment Partnership Program for the first time in 30 years and creates regional planning grants alongside innovation funds for local governments.
- Small-Dollar Mortgages: It creates pilot programs to improve access to small-dollar mortgages (amounts of $100,000 or less) to help homebuyers in rural and underserved areas.
To read the specific provisions of the legislation, review Inside the Deal: What’s in the Final 21st Century ROAD to Housing Act at the Bipartisan Policy Center. More insights from the League of Minnesota Cities.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
