ROAD to Housing Act Heads to President's Desk
Following overwhelming votes of 85 -5 in the Senate and 358-32 in the House, we are very pleased to report that the 21st Century ROAD to Housing Act will become law once the President signs the legislation, which is expected on Wednesday. Emphasizing the significance of the efforts of every corner of the affordable housing industry, the passage of ROAD is a testament to the perseverance and advocacy you and our colleagues in the industry demonstrated over this long process.
This marks two major policy victories in less than two months: the expansion of the LIHTC in the One Big Beautiful Bill and now the 21st Century ROAD to Housing Act. We do not intend to rest on these victories, as there is more to do to address the difficulties the Build America, Buy America mandate has created for housing production, increase investor demand for LIHTC, and increase appropriations for HUD and USDA housing programs.
Regarding the ROAD to Housing, the bill addresses myriad issues that we hope will make it easier and less expensive to produce housing.
Key provisions of the bill include:
(Section 203) Our much sought-after increase in the Public Welfare Investment cap from 15% to 20%. This could significantly increase banks' investment in the LIHTC.
(Section 901) Maintains language banning private equity investors from purchasing for-sale homes, but excludes language from the previous bill that would have done the same for Build-to-Rent housing. It also excludes the language requiring divestiture of those rental properties after 7 years. This is a big win for our advocacy efforts to eliminate BTR from the bill and protects investment in potential rental homes under the LIHTC program.
(Section 501) Within the reauthorization and reforms to the HOME Investment Partnership Program, the bill requires HUD to evaluate the Build America, Buy America program and its effects on housing production using HOME funds. This is part of our wider effort to address the disruption in housing production caused by the BABA mandate on HUD housing programs.
(Section 206) One of the issues we have been focused on since President Trump won reelection was streamlining environmental reviews. This section reforms NEPA reviews of small and infill housing developments, which we hope will simplify the process.
(Section 212) While the final bill did not totally lift the cap on RAD conversions, it did increase the cap by 100,000 units.
(Section 504) This section reauthorizes the CDBG-DR program for three years. It is not as long an extension as was desired, but it is a step in the right direction.
These are just a few of the provisions in the “ROAD” legislation. You can view a section-by-section of the legislation here.
We cannot thank you, our HAG members, as well as our partners in the industry enough for all the work that went into this victory for affordable housing. In addition, the astute policy making and negotiations by Senate Banking Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), along with House Financial Services Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA), were key to the successful outcome. This again demonstrates that bipartisan policymaking is possible in this hyperpartisan environment.
Thank you again.