The 21st Century ROAD to Housing Act, a bipartisan bill aimed at increasing housing affordability, was revised after extensive negotiation between the House and Senate.
The bill passed a procedural vote in the Senate on Wednesday by a vote of 87-8. Formal debate over the legislation will now begin, and once it is approved by the Senate, the bill will be sent back to the House for what lawmakers hope will be the final vote.
The updated legislation includes revised versions of six Senate bills that House members opposed, and the House’s version of a provision to protect single-family homes from being bought in droves by large corporations.
“The legislative process today,” said Sen. Tim Scott, R-S.C., on the Senate floor, “gives us an opportunity to restore hope for so many people who want to just experience their version of the American dream, which is so consistently homeownership.”
“Today,” Scott continued, “the average age of a first-time homebuyer is 40. Forty years old before you ever experience the American dream.”
The bill has received unprecedented bipartisan support as Americans struggle with high housing costs.
According to GOP leadership aides, final passage of the bill is expected Monday.
How the bill will lower costs
The Center for American Progress said, “The reason behind the United States’ affordability challenges is … simply not building enough homes.”
According to one of the center’s studies, the nation is “short approximately 2 million homes” and the shortage is the main driver of the rise in housing costs.
The housing bill aims to decrease costs by reforming zoning laws that make housing construction difficult. Along with zoning reform, the legislation will streamline environmental reviews and update federal housing programs.
Beyond red tape reform, the new legislation would also come with performance measures that the Trump administration encouraged in order to ensure results come from the changes.
If the bill is passed, $200 million will be provided annually between 2027-2031 for housing construction grants and $100 million will be provided yearly in the same time frame for commercial-to-residential building conversions.
Large investors owning more than 350 homes will be prohibited from purchasing more homes in order to decrease competition.
Among many other provisions in the package, the bill will include an expanded HOME Investment Partnerships Program and increased FHA mortgage limits.
According to Politico, Congress expects to send the housing bill to President Donald Trump’s desk by next Friday.
