HR6644119th CongressWALLET

Housing for the 21st Century Act

Sponsored By: Representative Hill (AR)

Passed House

Summary

**A federal push to *increase housing supply* by modernizing zoning and reforming housing programs.** The bill pairs model zoning guidelines and local planning pilots with HOME program changes and multiple HUD pilots to speed production and improve tenant supports.

Show full summary
  • Families and renters: HOME program rules harmonize income limits to 100% of area median income and raise homeownership eligibility to 110% AMI, expanding who can get help for rental and homebuying. Tenants in federally assisted housing gain new supports such as an eviction helpline and pilots for escrow accounts and internet-connected temperature sensors to track habitability.
  • Local governments and planners: HUD must publish model zoning guidelines within 3 years and recipients must report on land-use policy adoption. The bill funds pattern-book grants and planning/implementation pilots so jurisdictions can adopt pre-approved designs and streamline permitting.
  • Builders and manufactured housing sector: The law lets manufactured homes be built without a permanent chassis and requires new federal standards plus state certification within 1 year to ensure parity in financing, titling, and installation.

Bill Overview

Analyzed Economic Effects

25 provisions identified: 17 benefits, 0 costs, 8 mixed.

Bigger rural home repair loans

If enacted, USDA’s Rural Housing Service would raise the Section 504 loan cap to $15,000, up from $7,500. Eligible low‑income rural homeowners would be able to borrow up to $7,500 more for home repairs.

Guides and grants to build more homes

HUD would write zoning best‑practice guides to help states and cities allow more housing, with final guidance due within 3 years and a follow‑up report 5 years after. A pattern‑book pilot would fund pre‑approved housing designs and set aside at least 10% for rural areas; it would end 7 years after enactment. A point‑access block pilot would test simpler mid‑rise buildings; HUD guidance would be due within 18 months and the program would end after 7 years. A separate 5‑year pilot would offer competitive planning and implementation grants to update plans, zoning, inspections, and even build housing, with an administrative cap of 10%. A 7‑year pilot framework would also target affordable homes for households at or below 80% of area median income, in buildings up to 25 units, run by local governments or Tribes.

Faster environmental reviews for housing projects

If enacted, HUD would treat many housing activities like categorical exclusions, speeding reviews and cutting delays. The bill would define “infill” projects (generally up to 5 acres, served by existing utilities, and surrounded by development) to help streamline approvals. Tribes and local governments could assume environmental review duties for some HUD projects. HUD and USDA would sign an agreement within 180 days to reduce duplicate reviews and report within one year. For certain USDA rural housing on defined infill sites, no environmental study would be required; high‑risk flood or wildfire areas and greenfields would be excluded.

Higher HUD multifamily limits, indexed yearly

This bill would raise many dollar limits in HUD multifamily programs and index them each year starting January 1, 2026. HUD would adjust using a construction price index from March to March, round down, and publish the amounts. An example in the bill shows one limit rising from $38,025 to $167,310.

HOME rules broaden help, ease small projects

If enacted, many HOME limits would change. Households at or below 100% of area median income would count as eligible across key HOME uses, minimum allocations would rise to $750,000, and long‑term affordability tools (like community land trusts and shared‑equity) would be clearer. Small projects would get simpler rules, and some small or low‑allocation projects would not have to follow certain tenant‑protection and local hiring rules. The bill would also remove a time limit on drawing HOME funds and strike a sentence on per‑unit investment limits. HUD could deny reallocations if a jurisdiction fails program rules, and HUD would review Buy America rules within 180 days and issue guidance soon after.

Easier approvals to rescue failing banks

This bill would let regulators approve some interstate mergers or acquisitions involving banks in default or in danger of default, or deals with FDIC assistance, when needed to prevent major harm. Approval would require clear and convincing evidence that the deal is necessary and that no other qualified bid exists. A qualified bid would require bidders and affiliates to be well capitalized and well managed at application, and the combined bank to be well capitalized at closing.

Limit big-bank deals in failures

If enacted, the FDIC could choose a resolution option that is not the cheapest for its fund if it helps limit further big‑bank concentration and stays within set cost limits. The FDIC would write rules within one year to define the maximum extra cost allowed and may require buyers to pay assessments over at least five years in some cases. The FDIC would report to Congress within 30 days when it uses this option.

New rules on custodial and reciprocal deposits

If enacted, eligible banks with under $10,000,000,000 in assets could treat custodial deposits as non‑brokered up to 20% of total liabilities, if they were well capitalized and well rated at their last exam or have a waiver. Reciprocal deposits would get tiered exclusions from brokered‑deposit treatment: 50% up to $1,000,000,000; 40% of the portion over $1,000,000,000 up to $10,000,000,000; and 30% of the portion over $10,000,000,000 up to $250,000,000,000. When a bank is not well capitalized, it would be limited to paying rates on custodial deposits that do not significantly exceed local or national comparable maturity rates set by the FDIC. The FDIC would also study reciprocal deposits and report to Congress within 6 months.

FHA pilot for small home loans

If enacted, FHA would start a pilot within one year to expand small‑dollar mortgages. The pilot could pay lenders to make these loans, change FHA terms for them, and give grants to borrowers for down payments, closing costs, appraisals, and title insurance. FHA would report each year on results and risks. The pilot would end 4 years after it starts.

Tenant help: savings, hotline, temperature checks

If enacted, HUD would test escrow savings accounts for families in project‑based rental homes. Selected owners would set up accounts within 6 months and keep them at least 5 years, with families free to opt out anytime. Within one year, HUD would also launch an eviction helpline for tenants in covered assisted units; the program would end 7 years after enactment. A 3‑year pilot would fund temperature sensors in some assisted units, but only with written tenant permission; HUD would set rules within 180 days and report on results.

Easier start-up rules for community banks

If enacted, new community banks that became insured between January 1, 2026 and December 31, 2028, with total assets under $10 billion, would get a two‑year phase‑in to meet capital rules. During that period, they could request changes to their business plan; agencies would have 90 days to act or the request would be deemed approved. Regulators would study the pilot and report to Congress by December 31, 2031, and produce a separate study on why few new banks form within one year.

Mentor program for small financial institutions

Treasury would set up a mentor‑protege program 90 days after enactment. Large firms (assets ≥ $50,000,000,000) could mentor small institutions (assets ≤ $2,000,000,000) and minority or rural depositories. Treasury would hold outreach events at least once a year and report to Congress annually.

Stronger oversight of public housing agencies

If enacted, covered public housing agencies would have to post key contract details on their websites within 1 year. Posts would include goods or services, vendor, solicitation date, bid or quote info, and the official who solicited the contract. If Congress requests it, the HUD Inspector General would report in 180 days on a PHA’s compliance and conditions. Any receiver or federal monitor would send an annual report by October 1 with issues and timelines.

More disclosure after bank failures

If enacted, federal banking agencies would report to Congress within 90 days of certain failure determinations and again 210 days later. Reports would share exam findings and supervisory actions from the prior three years, plus causes and recommendations. Agencies could extend a deadline by up to 60 days for system‑stability needs, with notice.

Lighter exams for small banks and credit unions

If enacted, federal regulators would lighten exams for small banks and credit unions. Institutions with $6,000,000,000 or less in assets would get a limited‑scope exam after a full on‑site exam. Agencies would minimize on‑site time and give advance notice of issues. Two FDIC supervisory asset thresholds would rise from $3,000,000,000 to $6,000,000,000. Relief would not apply if an institution is under a formal enforcement action or, for banks, after a control change. Agencies would issue rules within 12 months and report to Congress each year.

Simpler steps to start new banks

This bill would make it easier to apply to start a new bank. Regulators would streamline forms, pull data from other agencies to avoid repeat requests, and consult the SEC on raising capital. At an applicant’s request, agencies would assign a caseworker and share mentorship lists within 1 year. Agencies would report to Congress within 1 year and annually for 5 years, and submit state engagement plans in 2 years and every 5 years.

Stronger housing counseling and oversight

If enacted, HUD would review counseling providers more closely and could require training, retesting, or suspend a counselor’s certification if results are poor, while avoiding big service gaps. Borrowers 30 or more days late on covered mortgages would be offered foreclosure‑mitigation counseling. HUD could deny renewal of assistance after written notice and an informal conference if requested.

Smaller Federal Reserve surplus in 2035

This bill would cut a specified Federal Reserve discretionary surplus amount by $115,000,000. The change would take effect on September 30, 2035.

Expand manufactured homes, set new standards

If enacted, the legal definition of a manufactured home would include homes with or without a permanent chassis. HUD would set labels and data‑plate rules for chassis‑less homes. States would have 1 year to certify parity for chassis‑less homes in areas like financing, title, insurance, taxes, and installation (2 years for biennial legislatures), or they would have to prohibit manufacture, sale, or installation of these homes in the State. HUD would also be the main approver of any new federal manufactured‑home construction and safety standards.

Faster USDA housing decisions

If enacted, USDA would aim to finish reviews and tell applicants within 90 days for Section 502 and 504 housing loans and grants. USDA would report within 90 days of enactment, and then yearly until it shows it met the 90‑day goal over a prior five‑year period.

Faster voucher inspections and leasing

If enacted, public housing agencies would be able to accept a recent inspection from other federal housing programs instead of doing a new one, if it was done within the past 12 months. HUD would also allow remote video inspections in rural or small areas when they give the same information. A new landlord could ask for a pre‑lease inspection; if the unit passes and a lease is signed within 60 days, that inspection would count. PHAs would give families a list of units that passed these pre‑inspections.

HUD would brief Congress each year

If enacted, the HUD Secretary would testify each year about HUD programs, public and assisted housing conditions, the FHA funds’ health, and progress on homelessness. This would increase transparency and oversight.

Track troubled public housing agencies

If enacted, public housing agencies under a receiver or federal monitor would have to tell HUD each year whether that oversight remains as of October 1. They would report when it started, who the receiver or monitor is, and any expected end date. The bill defines which agencies are covered.

More frequent meetings for credit unions

If enacted, new federal credit unions would have board meetings at least monthly for their first 5 years. Top‑rated credit unions would meet at least six times a year, with one meeting each fiscal quarter. Lower‑rated credit unions would meet at least monthly.

More local land-use transparency for HUD

Starting one year after enactment, some HUD grantees would need to submit a short, informational report at least every five years describing whether they have adopted certain land‑use reforms before they receive annual grants. Grantees would also have to keep a public, searchable list of all undeveloped land they own by October 1, 2026. The bill would repeal HUD’s Regulatory Barriers Clearinghouse.

Sponsors & CoSponsors

Sponsor

Hill (AR)

AR • R

Cosponsors

  • Waters

    CA • D

    Sponsored 12/11/2025

  • Flood

    NE • R

    Sponsored 12/11/2025

  • Cleaver

    MO • D

    Sponsored 12/11/2025

  • Green, Al (TX)

    TX • D

    Sponsored 12/15/2025

  • Sessions

    TX • R

    Sponsored 1/15/2026

  • Velazquez

    NY • D

    Sponsored 1/15/2026

  • Rose

    TN • R

    Sponsored 1/15/2026

  • Sherman

    CA • D

    Sponsored 1/15/2026

  • Steil

    WI • R

    Sponsored 1/15/2026

  • Scott, David

    GA • D

    Sponsored 1/15/2026

  • Stutzman

    IN • R

    Sponsored 1/15/2026

  • Beatty

    OH • D

    Sponsored 1/15/2026

  • Meuser

    PA • R

    Sponsored 1/15/2026

  • Pressley

    MA • D

    Sponsored 1/15/2026

  • Kim

    CA • R

    Sponsored 1/15/2026

  • Tlaib

    MI • D

    Sponsored 1/15/2026

  • Garbarino

    NY • R

    Sponsored 1/15/2026

  • Torres (NY)

    NY • D

    Sponsored 1/15/2026

  • Lawler

    NY • R

    Sponsored 1/15/2026

  • Garcia (TX)

    TX • D

    Sponsored 1/15/2026

  • De La Cruz

    TX • R

    Sponsored 1/15/2026

  • Pettersen

    CO • D

    Sponsored 1/15/2026

  • Nunn (IA)

    IA • R

    Sponsored 1/15/2026

  • Fields

    LA • D

    Sponsored 1/15/2026

  • Salazar

    FL • R

    Sponsored 1/15/2026

  • Bynum

    OR • D

    Sponsored 1/15/2026

  • Downing

    MT • R

    Sponsored 1/15/2026

  • Liccardo

    CA • D

    Sponsored 1/15/2026

  • Haridopolos

    FL • R

    Sponsored 1/15/2026

  • Moskowitz

    FL • D

    Sponsored 1/15/2026

  • Moore (NC)

    NC • R

    Sponsored 1/15/2026

Roll Call Votes

All Roll Calls

Yes: 390 • No: 9

house vote • 2/9/2026

On Motion to Suspend the Rules and Pass, as Amended

Yes: 390 • No: 9

View on Congress.gov

Related Bills

Back to Legislation

Take It Personal

Get Your Personalized Policy View

Create a free account to save research, track policy impacts, and unlock your personalized versions of these pages.

Already have an account? Sign in