By Emily Cadik, AHTCC Executive Director
In a significant step forward for federal housing policy, Senate and House leaders have released a new version of the 21st Century ROAD to Housing Act with, for the first time, full bicameral support. The agreement, backed by Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, alongside House Financial Services Committee Chairman French Hill and Ranking Member Maxine Waters, signals rare and notable alignment on housing at the federal level.
The Senate is moving quickly, with a vote expected as soon as this week, and the House anticipated to take up the bill shortly thereafter. For an industry in urgent need of additional tools and certainty, the pace and the bipartisan backing are both encouraging.
The updated bill largely preserves the recently House-passed framework and includes several priorities long advocated for by the affordable housing community. Chief among them is an increase to the Private Activity Bond threshold, lifting the 4% Housing Credit “PWI cap” from 15 percent to 20 percent. This change is expected to unlock substantial new investment in Housing Credit deals nationwide and has been a top priority for advocates.
The bill also clarifies that build-to-rent housing will not be swept into the institutional investor restrictions, providing important certainty for a growing segment of the market. In addition, it directs HUD to review how Build America, Buy America (BABA) requirements are applied to HOME funds, an issue that has created significant delays and cost pressures in affordable housing development. This comes alongside broader, ongoing congressional efforts to streamline BABA implementation.
The Senate version further strengthens the package by incorporating several provisions from earlier drafts. These include lifting the Rental Assistance Demonstration (RAD) cap, albeit with a new limit of 100,000 units; reinstating Community Development Block Grant–Disaster Recovery (CDBG-DR) authority for three years; and expanding the Moving to Work (MTW) program. Together, these provisions aim to increase flexibility for housing authorities and improve the federal government’s ability to respond to both long-term needs and disaster recovery.
While the bill still has steps to clear before becoming law, this level of bipartisan coordination is notable in today’s environment. For affordable housing stakeholders, it reflects the growing recognition in Congress that meaningful policy action is needed to address the nation’s housing shortage.
This progress is a direct result of sustained industry advocacy. As the bill moves forward, continued engagement will be critical to ensure these provisions are preserved through final passage and implementation.
We will continue to monitor developments closely and keep CCAH members informed as the legislation advances.