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119-hr-6337119th CongressWALLET

ROAD to Housing Act of 2025

Sponsored By: Representative McClain, Lisa C. [R-MI-9]

In Committee

Summary

expand housing supply and preserve affordable homes through new grants, pilots, zoning guidance, and program reforms to speed repairs, boost production, and protect tenants and low-income households.

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  • Low-income families and renters gain access to whole-home repair grants and targeted rehabilitation for households at or below 80% of area median income. An escrow pilot would let up to 5,000 assisted families build savings from earned-income rent increases.
  • Homeowners and small landlords can get grants or loans for repairs and rehabilitation, with some landlord loans forgivable after 3 years when units remain affordable. Landlord recipients face requirements like documentation of habitability and caps on annual rent increases of 5% or inflation for at least 3 years.
  • Local governments, tribes, and builders get new tools and incentives to speed housing production, including HUD zoning guidance, pro-housing transit scoring, CDBG allocation adjustments tied to housing growth, and an Innovation Fund authorizing $200 million annually for FY2027–FY2031.

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Bill Overview

Analyzed Economic Effects

22 provisions identified: 12 benefits, 0 costs, 10 mixed.

New long-term disaster recovery fund

If enacted, HUD would create an Office of Disaster Management and a Long-Term Disaster Recovery Fund for large recovery, mitigation, housing, and infrastructure grants. HUD could make preliminary grants up to $5 million and include up to an 18% mitigation add-on when estimating unmet needs. Grantees would usually have six years to obligate and use grant amounts, must submit plans within 90 days, and meet financial and civil-rights certifications before funds are awarded.

Federal tools to speed housing supply

If enacted, HUD would publish national guidance to help states and cities reform zoning within three years and run a multi-year Innovation Fund that gives at least 25 grants annually ($250,000–$10 million), authorized at $200 million per year for FY2027–FY2031 (CPI-adjusted). The bill would fund pattern-book design grants for low- and mid-rise buildings and treat many housing activities as NEPA-exempt or categorically excluded when environmental impact is small. HUD could also favor applicants in Opportunity Zones when awarding covered competitive housing grants and publish limited waivers with five days' notice.

Make small mortgages easier to get

If enacted, mortgages for 1–4 unit homes with original principal of $100,000 or less would be defined as "small-dollar mortgages." The Consumer Bureau would report within 270 days on how loan originator pay and fees affect these loans and could make rules afterward to clarify permissible pay. The Bureau would also evaluate points-and-fees limits for small mortgages and could begin rulemaking to encourage more small-dollar lending.

Exclude VA disability from HUD income

If enacted, HUD would exclude VA disability benefits under chapter 11 or 15 of title 38 from income calculations for certain HUD supported-housing and rental-assistance eligibility and for HUD-assisted rentals on Department property built after enactment. The exclusion would not change the definition of "adjusted income."

Grants and loans for whole-home repairs

If enacted, HUD must set up a pilot within one year that funds whole-home repairs with grants for eligible homeowners and loans (including forgivable loans for eligible small landlords). HUD would limit one implementer per State, allow up to 5% of funds for workforce training and 10% for admin, and permit loan forgiveness after up to three years under program rules.

Improve homeless intake and data

If enacted, HUD would review and update how people get homelessness help. Within two years HUD would issue updated coordinated assessment guidance and request input from local continuums and health experts. HUD would ask for information to improve homeless data sharing (including HMIS) and could offer incentives for more data exchange. HUD could also run housing-and-health demonstration projects and USICH would send annual reports and testify to Congress.

Protect and preserve rural rental housing

If enacted, USDA-backed rural rental housing would get new preservation tools. The bill would let the Secretary restructure loans, notify owners and tenants in advance of maturity, and renew rental assistance contracts up to 20 years in some cases. It would add authority to transfer projects to nonprofit or public purchasers and require HUD and USDA to streamline reviews for joint rural housing projects. The Rural Housing Service would also get authority for staffing and IT improvements to speed loan processing.

Section 8 rent-escrow savings pilot

If enacted, HUD would run an escrow pilot for Section 8 and Section 9 families. Up to 25 entities would be chosen and the pilot would cover up to 5,000 families whose adjusted income is 80% of AMI or less at enrollment. Rent increases caused by earned income while enrolled would go into interest-bearing escrow accounts that families could usually withdraw after at least five years and no later than seven years. HUD must select sites within 18 months and the pilot would end 10 years after enactment.

More funding flexibility for homeless programs

If enacted, Continuum of Care rules would allow up to six months of arrears payments, cap project terms at 15 years, and enable notices that fund two years at once when Congress appropriates the money. HUD could let Continuum recipients count eligible program income as required contributions, limit unified funding agency designations to two-year terms, and approve limited McKinney-Vento spending-cap waivers for FY2026–FY2029 with public notice. HUD would also allow pre-inspections, remote inspections in rural/small areas, and leasing before inspection in narrow cases to speed placements.

New appraisal review rights and forms

If enacted, consumers could request one reconsideration of an appraisal before closing or within 60 days of a credit denial. Lenders would have to review appraisals, disclose the reconsideration process, and pay for a new appraisal if material deficiencies or suspected discrimination are found. The Uniform Residential Loan Application would add a military-service question and a VA-loan disclaimer within 6 months. The Appraisal Subcommittee would also be able to adjust certain fees with Council approval.

Easier loans for ADUs and manufactured homes

If enacted, the bill would raise or set new FHA dollar caps for repairs and manufactured-home purchases. It would let FHA loans be used to build accessory dwelling units (ADUs) and allow USDA ADU rental income to help rural borrowers qualify when the property predates enactment. HUD would study and start rulemaking to ease modular-home construction financing. At the same time, FHA-covered loans generally could not exceed 30-year terms and States must certify parity rules for chassis-free manufactured homes or face a ban on sale/installation until they comply.

Limit MTW waivers and audits

If enacted, HUD would be limited to using only the Moving to Work waivers listed as of January 2025 and a specific set of waiver numbers would be banned. The bill would also authorize funding for the Neighborhood Reinvestment Corporation's Office of Inspector General and require annual independent audits, while preventing the OIG from taking over program operations. These steps tighten waiver flexibility and increase outside oversight.

New Moving to Work cohort rules

If enacted, HUD could add up to 25 high-performing housing agencies to new Moving to Work cohorts with rules to encourage employment and opt-out savings or escrow pilots. Selected PHAs must keep at least 75% of assisted families very low-income and follow selection caps and remediation rules. The Secretary would study past MTW work requirements and report initial findings.

Stronger rules to preserve affordable housing

If enacted, HUD would reauthorize HOME program flexibility, raise the HOME admin cap from 10% to 15%, and allow a Blighted Building to Housing pilot when HOME funding exceeds $1.35 billion. The bill would let community land trusts acquire HOME-assisted housing to keep it affordable for at least 30 years. HUD would require recorded restrictive-use agreements for preserved projects, set deadlines for preservation rulemaking, require on-site HOME inspections and public reporting, and allow HUD to reduce future HOME payments when funds were misused.

Incentives for housing and CDBG

If enacted, transit projects could get up to one extra point on federal ratings if applicants show pro-housing policies near the route. HUD would also change Community Development Block Grant allocations based on local housing growth, with places below-median growth facing up to a 10% reduction and bonuses redistributed to growth areas. The CDBG changes start in the second full fiscal year after enactment and run through FY2042.

Study and cap FHA multifamily limits

If enacted, the FHA Commissioner must study multifamily loan limits and report to Congress within 180 days. HUD could raise multifamily loan limits by rule but any increase could not exceed the bill's per-unit dollar caps for specified programs and bedroom counts.

Changes to HUD voucher rules

If enacted, public housing agencies could accept a third-party income verification done for another Federal program within the past 12 months if household income and composition have not changed. The bill also clarifies how prior-year income is used for annual reviews.

Rural vouchers and income reviews

If enacted, monthly assistance payments for rural housing vouchers would be set under the statute's rules and be subject to interim and annual reviews. Voucher amounts could be recalculated when household size, income, or local rental rates change.

Raise bank statutory threshold

If enacted, two statutory banking sentences would replace the number 15 with 20. The text change would take effect upon enactment. The amendment is a technical increase to a numeric threshold in two federal banking sentences.

Stronger housing counseling and help

If enacted, HUD would review housing counseling agencies and their counselors and could require extra training, retesting, probation, or suspension for poor performance. The bill would also require that borrowers 30 days or more behind on covered mortgages be offered counseling, and—when statutory conditions are met—the Mutual Mortgage Insurance Fund could pay the fair market cost of that counseling.

New FHA appraiser licensing rules

If enacted, most appraisers doing FHA work would generally need to be licensed or certified in the State where a property is located. Federal appraisers who opt in could work nationwide with one State license. HUD must issue guidance within 240 days and make it effective within 180 days after issuance. The rule adds competency and FHA-specific education requirements and a trainee-appraiser registry update.

More admin funding for homeless grants

If enacted, Emergency Solutions Grants recipients could use up to 10% of ESG funds for administrative costs instead of 7.5%. This would give grantees more flexibility to cover admin needs. It could change how much of ESG grants go to direct services.

Sponsors & CoSponsors

Sponsor

McClain, Lisa C. [R-MI-9]

MI • R

Cosponsors

  • Rep. Himes, James A. [D-CT-4]

    CT • D

    Sponsored 12/1/2025

Roll Call Votes

No roll call votes available for this bill.

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