The Senate’s Road to Housing Act and House of Representatives’ Housing for the 21st Century Act Aim to Increase Housing Supply
Communities across the country continue to face significant challenges in providing safe, attainable, and stable housing options for residents. Rapidly rising home prices, increasing rental costs, limited supply, and sustained demand have placed significant pressure on housing markets in both urban and rural areas. A recent Pew Research study found that 69 percent of Americans are very concerned about the cost of housing, which illustrates the national scale of this issue.
In response to these pressures, both chambers of Congress are taking legislative action. The Senate is poised to advance the ROAD to Housing Act as a standalone bill this spring, and the House of Representatives recently passed the Housing for the 21st Century Act in its chamber. Should the Senate pass its bill, the two chambers will need to resolve their differences between the two bills before legislation can be enacted into law. The continued momentum in Congress signals the federal importance and renewed attention to nationwide housing availability and affordability challenges.
Overview of the Housing Bills
The ROAD to Housing Act and the Housing for the 21st Century Act both contain provisions intended to improve housing affordability by lowering regulatory barriers and supporting local housing efforts. The bills also include provisions that ease NEPA requirements for certain small‑scale projects to streamline development timelines and bring more housing online more quickly. Furthermore, each bill modifies federal housing programs such as CDBG (Community Development Block Grants) and the HOME Investment Partnerships Program, although the amendments differ by bill. While the two proposals are distinct in approach and emphasis, both aim to support communities in building, preserving, and financing needed housing.
Greater Emphasis on Coordinated Regional Housing Planning
The Housing for the 21st Century Act contains a new Pilot for Housing Planning Grants in Section 203 which is not included in the ROAD to Housing Act. This pilot program would allow regional planning organizations to assist with or lead housing needs assessments, update regional and local housing plans, modernize regulatory processes, revise zoning codes, and coordinate strategies that expand access to public transportation. These activities are intended to help communities strengthen planning capacity, reduce barriers, and expand housing supply.
The ROAD to Housing Act includes a provision in section 211 that encourages federal transit projects to adopt pro‑housing policies, incorporating a previously stand-alone bill, the Build More Housing Near Transit Act. This provision reflects a continued federal interest in aligning housing production with transportation investments. For regional organizations, these developments reinforce the long‑standing need to integrate land use, transportation, and housing decisions.
Increased Demand for Technical Assistance to Local Governments
Key program reforms in the ROAD to Housing Act and the Housing for the 21st Century Act modify the Community Development Block Grant Program, the HOME Investment Partnerships Program, and USDA’s Rural Housing Services by expanding program eligibility, adding new reporting requirements, and incentivizing homebuilding and affordability. Many of these changes could place additional responsibilities on regional councils, including coordinating services across jurisdictions, supporting data collection and reporting, and helping communities address increased transportation demands in areas where housing growth accelerates as a result of these policy changes.
Community Development Block Grant
Both the House and Senate housing bills make significant changes to the Community Development Block Grant (CDBG) to incentivize increasing the housing supply at the local level.
Section 206 of the ROAD to Housing Act ties CDBG funding directly to increasing housing supply, rewarding communities that build housing above the median growth rate with bonuses and penalizing those that fall below it by causing CDBG grantees to lose funding This shift pushes local governments to move housing projects through planning, zoning, and permitting processes more quickly while also strengthening their ability to track and report housing data. The provisions in ROAD regarding CDBG would place significant pressure on local governments to increase housing production, which could in turn increase demands on regional councils. Regional councils may be called on to coordinate a regional housing strategy and support local jurisdictions in meeting funding eligibility if housing supply benchmarks are not achieved.
In the Housing for the 21st Century Act, Section 202, allows CDBG funding to be used for the construction of new affordable housing and requires recipients of CDBG funding to report on local land use policies. This, too, places additional reporting requirements on CDBG grantees; however, it does not penalize them as the ROAD to Housing Act does. Additionally, because both bills incentivize increased housing development, the resulting growth will place added pressure on regional transportation systems. This would require a coordinated regional response to ensure infrastructure keeps pace with housing demand.
HOME Investment and Partnerships Program
In addition to CDBG changes, both bills make substantial—but differing—updates to the HOME Investment Partnerships Program. Section 201 of the 21st Century Act reforms the HOME program by expanding eligibility for low‑income families and allowing more flexible uses of funds for infrastructure improvements such as repairs to water and sewer lines, sidewalks, and roads. In contrast, section 502 of the ROAD Act increases fiscal resources for program administration and allows small‑scale housing to qualify as affordable housing.
Reauthorizing the HOME program and expanding eligibility to HOME funds for infrastructure improvement projects are especially important for regional councils. Many of the communities they represent rely on these tools to address infrastructure gaps, coordinate multijurisdictional housing strategies and support rural jurisdictions that often lack the capacity to advance affordable housing development on their own. Regional councils are also frequently looked to when new housing projects arise, as they help communities identify and secure the infrastructure funding needed to support and expand development.
USDA Rural Housing Services
Beyond HUD programs, both bills also address rural housing needs through changes to USDA’s Rural Housing Service, which plays a critical role in supporting rural communities. The ROAD to Housing Act enhances support services and permanently establishes the Housing Preservation and Revitalization Program for multifamily housing. In many rural areas, affordable rental housing is made possible by USDA rural housing mortgages that are expiring, which would cause rental rates to skyrocket; changes in the Senate bill would decouple affordable housing assistance from the underlying mortgages, preserving affordable rental housing in many communities.
The Housing for the 21st Century Act expands access to USDA home repair loans and requires an annual report reviewing program applications; this is also included in ROAD. Changes of this type often require additional coordination, reporting, or technical knowledge. As a result, local governments may rely more heavily on regional councils, MPOs, and RPOs for assistance with grant navigation and implementation.
Looking Ahead
The progress of these two housing bills demonstrates the need to address the national housing shortage on a broad basis, using every federal tool Congress can muster, though a final compromise will determine which provisions ultimately become law. It also remains to be seen if a bill can pass in 2026, given the looming mid-term elections. A final, compromised bill would need to be passed in the spring—any later and chances for passage drop sharply, as legislators are less willing to support bills as they get closer to November elections.
Regardless of the final outcome, regional organizations already perform much of this work through long-range planning, data analysis, and collaborative problem-solving—and will continue to support communities in developing effective housing strategies. Through initiatives such as the National Association of Regional Councils housing working group, regional entities across the country are sharing best practices and assisting communities in addressing housing pressures. Federal momentum on housing policy continues to build, and regional councils will continue to support their communities as this landscape evolves.