After years of work and overwhelming bipartisan support, the 21st Century ROAD to Housing Act is now law. The legislation represents one of the most significant federal housing policy efforts in decades and an important step toward addressing America’s housing shortage.
But signing a bill into law isn’t the end of the story. In many ways, it’s the beginning.
There is plenty of work ahead.
The law contains more than 50 provisions that federal agencies must turn into reality through regulations, guidance, new programs and day-to-day administration. In all, the legislation requires more than 100 implementation actions across the federal government, many of them within the first year.
The legislation provides the framework, but effective implementation at every level will be critical to expanding housing supply and improving affordability.
That’s why the National Association of REALTORS®’ work didn’t end when the bill was enacted July 11. As implementation gets underway, NAR will continue working with agencies and policymakers to help ensure the law delivers on its promise.
Here are five areas NAR will be watching especially closely.
1. Building More Homes
At its core, the act is focused on increasing housing supply. The law addresses barriers that can make housing harder and more expensive to build, including by developing model housing-supply frameworks, rewarding communities that adopt pro-housing policies, supporting preapproved housing designs that can speed permitting, and streamlining environmental reviews for certain federally supported housing projects.
Rather than relying on a single solution, the act recognizes that addressing America’s housing shortage will require action on multiple fronts.
2. Expanding Access to Homeownership
The 21st Century ROAD to Housing Act includes several provisions designed to expand access to mortgage financing and homeownership.
Among them are measures to improve access to Federal Housing Administration small-dollar mortgage lending, update financing for manufactured homes and make it easier for veterans to understand and use their Veterans Affairs home loan benefits.
The legislation also modernizes U.S. Department of Agriculture rural housing programs by allowing more borrowers to assume existing loans and expanding financing opportunities for properties with accessory dwelling units.
3. Making Federal Housing Programs Work Better
This law will make changes to programs communities already rely on.
Major changes to the HOME Investment Partnerships Program provide greater flexibility to support homeownership, while Community Development Block Grants can now support new affordable housing construction.
The law also establishes a statutory framework for CDBG disaster recovery, replacing the long-standing practice of rebuilding the program after each major disaster.
4. Encouraging Housing Innovation
Addressing the housing shortage will require new approaches to what gets built and how it gets built.
The 21st Century ROAD to Housing Act advances manufactured housing reforms designed to lower production costs and expand design and siting options. It also supports commercial-to-residential conversions and creates opportunities to test point-access, or single-stair, multifamily buildings.
These provisions could give communities and housing providers additional tools to respond to local housing needs.
5. Funding the New Programs
The law authorizes several new grant programs intended to increase housing supply and improve affordability. But authorization does not mean funding.
Congress will need to provide funding through the appropriations process before these programs can get off the ground. Many are also time-limited, making timely funding particularly important.
NAR will continue advocating for Congress to fund these programs so federal agencies can establish them and communities can put the new tools to work.
The Road Ahead
“Implementation also extends beyond Washington. States and local governments will need to determine how new tools and flexibilities can work in their communities, prepare for funding opportunities and, in some cases, take action of their own to put the law into practice,” says Shannon McGahn, NAR executive vice president and chief advocacy officer. “Housing providers and real estate industry stakeholders will also play an important role in carrying out new programs and policies and providing feedback on how they work on the ground.”
The coming months will bring new guidance and regulations, funding decisions and new programs that will determine how the 21st Century ROAD to Housing Act works in communities across the country.
McGahn says NAR will continue to follow that process closely, highlighting key implementation milestones, what they mean for real estate and where NAR is weighing in.
