On May 20, the House voted 396-13 to pass its amended version of the 21st Century ROAD to Housing Act, sending the act to the Senate for approval. The National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA) released statements of support following the act’s passage.
The bipartisan legislation was designed to address the nationwide housing inventory and affordability crisis by reducing regulatory barriers to home construction and loan origination.
Its key provisions include restoring certain community banking supports, establishing pilot programs for small-dollar mortgages and limiting the acquisition of single-family homes by large institutional investors, in line with an executive order issued in January.
NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn issued a statement applauding the House’s action.
“From the beginning, NAR has strongly supported this sweeping legislation and worked closely with lawmakers in both chambers and the administration to help advance real solutions to America’s housing supply and affordability challenges,” McGahn said.
“This bill reflects the growing bipartisan consensus that the nation needs bold action to expand housing inventory, improve affordability and create more pathways to homeownership and rental opportunity. Specifically, this amended bill provides communities with new resources and best practices to modernize zoning and boost supply, streamlines federal permitting and expands financing options for manufactured and rural housing. The bill also modernizes key programs like [Community Development Block Grant] and HOME to strengthen local housing investment, improves credit access for homebuyers, and helps ensure veterans take full advantage of their [Veterans Affairs] home loan benefits.
“We encourage the Senate to advance this legislation and send it to the President’s desk. NAR looks forward to continuing our work with leaders in the House, Senate and the administration to move these housing solutions across the finish line for communities nationwide.”
MBA President and CEO Bob Broeksmit also released a statement welcoming the bill’s advancement and thanking House Financial Services Committee Chair French Hill (R-Ark.), Ranking Member Maxine Waters (D-Calif.) and other lawmakers who supported the legislation.
“The House revisions addressed many key concerns raised by MBA and other stakeholders, strengthening the legislation while preserving important measures in the Senate’s bill to boost housing supply and expand access to affordable mortgage credit,” Broeksmit said. “The Senate’s quick passage of this bill and President Trump’s signature will help advance meaningful housing affordability solutions for our nation’s homeowners and renters.”
Among the few contentious portions of the bill to be ironed out are disagreements over tenant protections and investor mandates.
The Senate’s version featured broader language limiting institutional investors and had fewer exceptions. It also included an additional requirement that single-family homes built by “mega-landlords” — corporate entities, private equity firms or Real Estate Investment Trusts that own thousands of residential properties as long-term rentals — be sold to individual homebuyers within seven years. The House version prohibits institutional investors with 350 or more single-family homes from purchasing additional properties.
Among the more notable changes the House made to the bill was the addition of a community-banking provision the Senate removed from its version of the bill. This provision was intended to promote new community bank formation and streamline examinations for smaller institutions, which held 57 percent of one-to-four family residential construction loans in 2024.
The Senate must vote on the amended version of the bill to determine the next steps in its path to potentially becoming a much-anticipated law.
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