The 21st Century ROAD to Housing Act (ROAD Act) officially became law on July 11, 2026, marking a significant victory for affordable housing advocates, rural housing providers, and residents across the country. Backed by overwhelming bipartisan support in Congress, the legislation delivers long-sought reforms aimed at preserving affordable housing, reducing administrative barriers, and expanding investment opportunities.
A centerpiece of the law is the permanent decoupling of Section 521 Rental Assistance from maturing USDA Section 514 and 515 mortgages, ensuring that rental assistance can continue even after older rural housing loans mature. The legislation also incorporates key provisions from the Rural Housing Service Reform Act of 2025 and permanently authorizes the Multifamily Preservation and Revitalization (MPR) Program, strengthening long-term preservation efforts for affordable rural housing.
The ROAD Act also includes several broader housing reforms designed to increase capital for affordable housing development and preservation. Most notably, the legislation raises the Public Welfare Investment (PWI) cap from 15% to 20%, a change expected to unlock billions of dollars in additional investment for affordable housing and the Low-Income Housing Tax Credit (LIHTC) program. This long-sought reform is expected to significantly increase bank participation in affordable housing investments nationwide.
Because the law takes effect immediately, federal banking regulators can begin updating regulations and approving higher investment limits. The legislation also requires the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board to report to Congress on the use of Public Welfare Investments.
Additional provisions modernize the HOME Investment Partnerships Program, make targeted updates to the Rental Assistance Demonstration (RAD) program, improve coordination between USDA Rural Development and HUD, and streamline environmental review requirements for certain housing activities.
Together, these reforms represent one of the most significant affordable housing policy achievements in recent years, providing new tools to preserve existing housing, encourage investment, and support the development of affordable homes in rural and urban communities alike.
We’d also like to give a huge shout-out to our federal advocacy partners, including the Affordable Housing Tax Credit Coalition (AHTCC), for their leadership, expertise, and tireless efforts in helping advance these critical, once-in-a-generation reforms. Their advocacy and partnership were instrumental in securing meaningful policy changes that will benefit affordable housing communities for years to come.