A new bill passed
On October 9, the U.S. Senate passed a bipartisal bill that addresses many of the issues contributing to the current housing crisis. However, the “Renewing Opportunity in the American Dream to Housing Act of 2025” or the “ROAD to Housing Act of 2025” has a long way to go before it becomes law.
The bill would have to pass the Senate, House of Representatives, then be signed into law by the president.
The bipartisan nature of the bill (it was co-sponsored by Committee Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MS)) makes its successful passage a realistic possibility. Let's hope it's enacted soon because it contains some seriously helpful ideas.
Industry Backing
Indeed, the National Association of Realtors® (NAR) has already called it a "landmark, comprehensive piece of legislation that addresses the full spectrum of housing needs while prioritizing pathways to homeownership for American families."
"The ROAD to Housing Act represents the kind of thoughtful, bipartisan approach needed to address America's housing challenges," continued the NAR in a letter to the bill's sponsors. "By focusing on expanding supply, reducing barriers to development, preserving existing housing, strengthening disaster recovery efforts, and creating pathways to homeownership, this critical legislation will help ensure that the American Dream of homeownership remains accessible to families across the economic spectrum."
What the ROAD to Housing Bill Wants to Do
Here are some of the more important goals of the bill, according to Scott and Warren's committee:
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Directs HUD to create guidance to help local communities reduce zoning barriers and speed up housing approvals.
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Streamlines environmental reviews by giving states and local governments more authority to expedite the process for housing projects.
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Simplifies federal environmental reviews for smaller housing developments and projects on existing lots.
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Expands manufactured housing definition to include modular and prefab homes not built on permanent foundations, opening doors for more affordable options.
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Mandates CFPB study on how loan officer compensation affects the availability of small mortgages.
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Promotes housing development near public transit routes.
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Allows FHA to adjust loan limits for apartment buildings based on actual market costs after conducting a study.
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Removes funding cap on the program that converts aging public housing to private management while maintaining renter protections.
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Directs FHA to study and fix financing obstacles for modular housing construction.
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Requires CFPB to adjust fee regulations that currently discourage lenders from offering small-dollar mortgages.
Importantly, the bill extends and improves the grants available for certain new developments, for individual refurbishment projects, and for area renewal projects. It also includes additional assistance for veterans.
Why We Want the ROAD to Housing Bill to Pass
It would likely take massive government investment to build that many new homes, even over the next decade. And it looks highly unlikely that such sums will be provided anytime soon.
The ROAD to Housing Bill is stuffed full of measures (especially zoning reform and mortgage rule changes) that could help the private sector to at least begin to catch up with demand. And that would be a great start. Never let the perfect be the enemy of the good.
