The U.S. Senate passed the bipartisan ROAD to Housing Act as part of the National Defense Authorization Act, aiming to spur affordable housing development nationwide. If enacted, the bill would give cities new tools to streamline permitting, modernize zoning codes, and expand affordable housing options. Meanwhile, the federal government shutdown has entered its third week as senators debate a path forward on funding legislation.
ROAD to Housing Act
On Oct. 9, the Senate approved the bipartisan ROAD to Housing Act by attaching it to the National Defense Authorization Act (NDAA). This legislation is a deregulatory measure and aims to boost the supply of housing units across the United States.
The Act requires the Department of Housing and Urban Development (HUD) to develop programs and rules to spur denser, more affordable housing. Several provisions in the legislation are particularly relevant for local governments, offering new tools to accelerate housing construction, convert vacant properties into housing, and streamline local regulatory processes.
Provisions That Equip Local Governments
- The Housing Supply Frameworks Act (Sec. 203)
- Directs HUD to create best-practice zoning and land-use frameworks to help cities update outdated codes and remove barriers to development.
- The BUILD Housing Act (Sec. 207) and the Unlocking Housing Supply Act (Sec. 208)
- Reduces duplicative environmental reviews, especially for small and infill projects, enabling local governments to fast-track housing approvals.
- The Innovation Fund (Sec. 209)
- Provides flexible, competitive grants for cities with pro-housing policies, which can be used for infrastructure, housing, or water/sewer projects.
- The Accelerating Home Building Act (Sec. 210)
- Supports local adoption of pre-approved housing design templates to reduce permitting delays.
Disaster Recovery, Homelessness & Rural Housing Fixes
- The Reforming Disaster Recovery Act (Sec. 501)
- Permanently authorizes the Community Development Block Grant–Disaster Recovery (CDBG-DR) program.
- Creates a dedicated HUD office to oversee disaster housing recovery, offering predictability for municipalities responding to natural disasters.
- The Incentivizing Local Solutions to Homelessness provision (Sec. 506)
- Allows cities to request waivers to reallocate Emergency Solutions Grant funds based on local needs.
- The Streamlining Rural Housing Act (Sec. 802)
- Coordinates HUD and USDA environmental reviews, cutting red tape for federally funded rural housing projects.
The Act also includes Georgia Senator Raphael Warnock’s Appraisal Modernization Act (S.2322), which targets racial bias in home appraisals.
Next, the Act will be considered by the House, although their version of the NDAA passed in September notably does not include the ROAD to Housing Act. With it passing unanimously in a Senate committee and the NDAA passing 77-20 in the full Senate, there is a strong chance of continued bipartisan support in the House.
Government Shutdown
Despite passing momentous housing reforms, the Senate still has not agreed to the House-passed Continuing Resolution (CR) to fund the government, extending the shutdown to its third week.
Senate Majority Leader John Thune is weighing a new strategy to break the stalemate. He’s proposing votes on standalone full-year appropriations bills hoping to garner support to fund agencies such as the Department of Defense, Labor, Housing and Urban Development, among others.
The Trump administration’s push for permanent reductions in the federal workforce is being challenged in the courts, with a federal judge temporarily blocking layoffs of thousands of workers. The fight to ensure backpay for furloughed workers is also heating up. Both the layoffs and the question of backpay have drawn bipartisan opposition.
At this time, with the House in indefinite recess, negotiations between party leaders on the CR and extending the health insurance subsidies remain stalled.
Please contact our Federal Relations Manager, Molly McLoughlin, to share how the shutdown is affecting your community.