All Roll Calls
Yes: 396 • No: 13
HRES1299119th CongressWALLET
21st Century ROAD to Housing Act
Sponsored By: Representative Hill, J. French [R-AR-2]
Passed House
Summary
Expands housing supply and access while reining in big investors. The bill packs new pilots, zoning and environmental-review reforms, modular/manufactured housing changes, borrower protections, and limits on large institutional buyers into a single housing-and-finance package.
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Bill Overview
Analyzed Economic Effects
37 provisions identified: 25 benefits, 2 costs, 10 mixed.
Higher FHA and manufactured-home limits
Starting July 1, 2025, HUD raises and then updates FHA dollar limits each year using a construction‑price index. HUD rounds each update down to the next dollar and publishes it. You can borrow up to $75,000 for home repairs or improvements, including manufactured homes. The dwelling‑equity line limit is $43,377. Manufactured‑home purchase limits are $106,405 (single‑section) and $195,322 (multi‑section). Purchase‑plus‑lot limits are $149,782 (single‑section) and $238,699 (multi‑section). Loan terms can be up to 30 years.
Preserving rural affordable rental housing
USDA creates a Housing Preservation and Revitalization Program for projects with Section 514, 515, or 516 loans. Owners get annual notice before loan maturity; tenants get at least two years’ notice. USDA can restructure debt and renew rental assistance for up to 20 years, subject to funding, or decouple and renew assistance where needed. When a family’s assistance ends, owners have 6 months to assist another eligible family in the same project before authority is reallocated.
Big investors blocked from buying homes
Starting 180 days after enactment, large investors that control 350 or more single‑family homes cannot buy more single‑family homes. The law defines how control is counted. It lists exceptions, like some new construction and rehab programs, and it does not force sales of homes already owned. Large investors must tell Treasury within 180 days and then every year how many homes they control and in which cities and States (with a small‑city listing exception).
Grants to boost local housing supply
HUD creates an Innovation Fund within 1 year, awarding at least 25 annual grants when funded. Grants range from $250,000 to $10,000,000 and are authorized at $200 million per year for 2027–2031, adjusted by CPI‑U. HUD also funds planning grants, rural‑set‑aside grants to select pre‑reviewed building designs, and pilots to convert vacant commercial or industrial buildings into housing. HUD studies the conversion pilot’s impacts after it ends.
No Federal digital dollar until 2030
The Federal Reserve cannot issue a U.S. central bank digital currency without a new law, through December 31, 2030. The law defines a CBDC and allows private digital money that fully preserves cash‑like privacy.
Bank rescues: more options and oversight
The FDIC can choose a resolution that is costlier to the insurance fund if it limits big‑bank concentration; it must write rules within 1 year and make the buyer repay the cost gap over at least 5 years, and report to Congress within 30 days. Mergers that would normally be blocked can be approved for failing banks to avoid severe economic harm, with well‑capitalized and well‑managed bidders. After a systemic‑risk decision, the GAO must report in 60 and 180 days, and agencies must share related exam reports in 90 and 210 days (with one possible 60‑day extension).
Cuts Federal Reserve surplus by $115 million
On September 30, 2035, the dollar amount set in the Federal Reserve Act is reduced by $115 million. This changes a Federal Reserve accounting figure. Any household effects are indirect.
Better support for rural renters
USDA must let rural voucher tenants request interim recalculations for income drops, family changes, or rent changes, and recertify yearly at ≤80% of area median income. USDA can hire staff and upgrade IT for Rural Housing Service programs, with tech funds available for 5 years. USDA must publish an annual rural housing report with performance and risk data. A Rural Community Development Initiative provides up to $500,000 grants, with match waivers for persistently poor rural regions.
Easier access to small mortgages
HUD creates a Pilot within 1 year to grow mortgages of $100,000 or less for 1–4 unit owner‑occupied homes. The Pilot can pay lenders and give buyers grants for down payments, closing costs, appraisals, and title insurance. The Pilot ends 4 years after it starts and requires annual reports. The law also defines a small‑dollar mortgage as $100,000 or less and orders a CFPB study of loan officer pay within 270 days.
Flexible homeless funds in 2027–2030
Local recipients of McKinney‑Vento homelessness funds can ask HUD to waive a spending cap for fiscal years 2027 to 2030. HUD posts requests, decides within 60 days, and must deny any plan that relocates people without providing shelter or housing options. Approved waivers last for that grant’s performance period unless revoked after public input.
More help for rural renters and repairs
Rental assistance in USDA multifamily properties stays in place during foreclosure or when USDA manages or sells the property. Rural housing voucher payments follow section 542(a) rules, with interim and annual reviews. The Section 504 minor home‑repair loan limit doubles to $15,000 for eligible low‑income applicants.
More help for struggling mortgage borrowers
If you are 30+ days behind on a covered FHA, VA, USDA, or Section 184/184A mortgage, you are offered housing counseling. For some FHA borrowers, the Mutual Mortgage Insurance Fund pays the fair‑market counseling cost when statutory terms are met. Lenders on federally backed mortgages must also have a process to review appraisal disputes on your main home. The mortgage application now includes a VA loan notice for military borrowers within 6 months of enactment.
Renters build savings in escrow
HUD runs a Pilot with up to 25 entities and 5,000 families on Section 8 or 9. If you enroll and your earned income raises your rent, that increase goes into an interest‑bearing escrow account. You can withdraw after 5 years (up to 7 with continued participation), or sooner if you lose assistance or meet approved self‑sufficiency goals. Families over 80% of area median income at enrollment cannot participate. The Pilot ends 10 years after enactment.
Stronger renter notices and oversight
Large institutional landlords must give renters clear contact details at move‑in and yearly and post them on a public website, updating within 30 days of any change. HUD funds a three‑year pilot to install internet‑connected temperature sensors in covered assisted housing, with resident consent and privacy rules. Public housing agencies under a receiver or monitor must post contract details and provide annual reports to Congress, improving oversight.
Big fines on large home investors
Large institutional investors that break the single‑family purchase ban face civil penalties. The fine is the greater of $1,000,000 per violation or three times the home’s purchase price. Starting in fiscal year 2027, collected penalties can fund HUD’s HOME program for building, buying, or fixing single‑family homes and first‑time buyer help, subject to future appropriations. Penalties take effect 180 days after enactment.
Faster environmental reviews for small housing
HUD streamlines NEPA reviews and expands categorical exclusions for many housing activities using post‑effective‑date funds. HUD can also label some new funds as “special projects” to speed NEPA, except where other laws set the process or projects mix old and new funds. HUD and USDA must sign an MOU in 180 days to coordinate reviews on joint projects. HOME‑assisted infill and small projects, and certain USDA infill‑site projects, are exempt under set limits.
HOME program: clearer rules and flex
The law defines community land trusts for HOME, requiring nonprofit or government control and at least 30 years of affordability. Small HOME projects can skip Section 3 hiring rules when the jurisdiction’s last‑year HOME allocation was under $3 million and the activity covers 50 or fewer units. HUD must review and clarify how Buy America rules apply to HOME projects within set deadlines.
More local tools to build housing
CDBG funds can pay for new affordable housing, up to 20% of a local allocation, for money appropriated after enactment. The law removes the expiration on drawing Home Investment Trust funds, keeping local access open. The HOME minimum allocation per jurisdiction rises to $750,000. HUD can give extra points for competitive housing grants in or directly helping Opportunity Zones.
Zoning and building guides to add homes
HUD publishes zoning reform guidelines after a two‑year public comment process and finalizes them within 3 years. The guidance covers ADUs, by‑right duplexes to fourplexes, lower parking minimums, manufactured/modular access, transit‑oriented housing, and anti‑displacement steps. HUD also issues model code and best practices within 18 months for safe single‑stair, up‑to‑6‑story buildings and runs a related pilot grant program. Local codes still apply.
Easier path for community and new banks
Treasury sets up a Mentor‑Protege program so large ($50 billion+) firms can mentor small banks ($2 billion or less, or minority/rural) and reports yearly. Agencies can give qualifying community banks a 2‑year phase‑in to meet capital rules and must decide plan changes in 90 days. Regulators must streamline de novo applications, assign a caseworker on request, post mentor info in 1 year, and file engagement plans in 2 years. FDIC testing thresholds rise to $6 billion. Agencies must study rural banks and rural credit unions and report in 1 year. Federal credit unions get tailored board‑meeting rules. The public welfare investment threshold rises to 20%, with biennial reports.
Whole‑home repair help and rent limits
HUD runs a pilot giving repair grants to eligible homeowners (typically ≤80% of area median income) and loans or forgivable loans to small landlords. Forgivable loans can be forgiven within 3 years if rules are met. Assisted rental units must stay affordable for at least 3 years, and rent increases are capped at 5% or inflation, whichever is lower. The pilot ends October 1, 2031.
Stronger oversight and public reporting
HUD can cut future payments to a jurisdiction by the amount it spent improperly and can withhold reallocations when HOME rules are not met. Local and State reviews must include onsite inspections, and results must be reported and made public. By October 1, 2026, CDBG grantees must post a searchable list of undeveloped parcels they own. HUD also raises an asset‑recycling target to 110%.
New deposit rules for community banks
Eligible banks under $10 billion in assets can exclude custodial deposits up to 20% of total liabilities from brokered‑funds treatment. Banks can also exclude parts of reciprocal deposits: 50% up to $1 billion in liabilities, 40% of the next $9 billion, and 30% up to $250 billion, if their CAMELS rating is 1, 2, or 3. A bank that is not well capitalized cannot pay above‑market rates on custodial deposits it accepts while undercapitalized.
Help line for renters in investor-owned rentals
HUD sets up a toll‑free number and public website within 180 days. Renters in properties owned by large institutional investors can report rental disputes and possible federal‑law violations. HUD responds quickly, documents outcomes, and shares information with other Federal agencies. HUD also gives State contact details for State‑law issues and sends Congress a yearly, anonymized report.
FHA loans for ADUs and updates
Homeowners can use FHA construction loans to build accessory dwelling units (ADUs). The HUD Secretary defines ADUs and sets loan amounts. HUD must also pick a method within 1 year to index certain National Housing Act loan limits each year.
VA disability pay ignored for housing
For certain supported housing and HUD property rentals, VA disability benefits under title 38 chapters 11 or 15 are not counted as income. This change starts upon enactment. The rule does not change how “adjusted income” is calculated for other purposes.
Agencies share housing data and fixes
HUD, USDA, and VA must share housing research and data and file a joint report within 180 days. The report lists federal laws and rules that raise costs or block new housing and recommends changes. The draft report is published for 30 days of public comment before it goes to Congress.
More oversight of homelessness plan
The U.S. Interagency Council on Homelessness must send a yearly report on plan progress and changes to the President and Congress. The Council may testify to Congress once a year if asked.
Tribal control of project reviews
Federally recognized Tribes can take on environmental reviews for certain HUD multifamily disposition projects, like States can. This can speed approvals and give Tribes more control.
FHA review to boost modular homes
HUD must review FHA construction financing within 1 year to remove barriers to modular building, including draw schedules. Within 120 days after the report, HUD starts rulemaking on alternative draw schedules and then issues a final rule or an explanation. HUD may also fund a study for a standard module ID and recording system.
Possible higher fees for appraisers
The Appraisal Subcommittee can change its fees if the Council approves. This can raise operating costs for appraisers and appraisal management firms.
No new money authorized for this Act
The law does not authorize any new funding to carry out this Act or its amendments. It does not spend money. It limits future funding unless Congress later approves funds.
Flex rules for small affordable rentals
Some tenant protections do not apply to affordable rentals with 4 or fewer units that meet rent and occupancy rules, accept vouchers, and are monitored. The Secretary may allow foreclosure or transfer when a property is no longer financially viable due to unforeseen events, but not to dodge affordability rules. HOME set‑aside funds only apply when a CHDO materially participates; unused set‑aside funds after 24 months can be re‑used for other eligible activities.
Stronger checks on housing counselors
HUD now reviews the performance of all HUD‑funded housing counseling groups. HUD can require more training, order retesting (with at least two tries), suspend counselor certifications, or end funding with 60 days’ notice. An organization can ask for an informal conference during the notice period.
More appraisers and clearer FHA rules
FHA appraisers can be licensed in one State and do FHA work nationwide, if appraisal is their main job. HUD requires verifiable FHA appraisal education and USPAP competency, with a transition exception for already‑approved appraisers. States add credentialed trainees to the national registry, and certified appraisers can use trainees while staying liable. HUD issues guidance within 240 days, effective within 180 days after issuance.
HUD regulatory barriers hub is closed
The law abolishes HUD’s Regulatory Barriers Clearinghouse. This ends the federal site that shared information on housing regulatory barriers.
Single‑family definition excludes manufactured homes
The law defines a single‑family home as a building with two or fewer units and says manufactured homes are not single‑family under this law. This clarifies which homes count in programs that use this term.
Sponsors & CoSponsors
Sponsor
Hill, J. French [R-AR-2]
AR • R
Cosponsors
Rep. Waters, Maxine [D-CA-43]
CA • D
Sponsored 5/19/2026
Roll Call Votes
house vote • 5/20/2026
On Motion to Suspend the Rules and Agree
Yes: 396 • No: 13