Senate approves housing affordability bill
The US Senate on Monday, June 22, approved a bipartisan housing bill aimed at lowering housing costs by encouraging new construction, easing permitting rules and limiting the role of large investors in the single-family housing market. The measure, called the 21st Century ROAD to Housing Act, passed in an 85 to 5 vote and now heads to the House of Representatives. If approved there, it will be sent to US President Donald Trump for his signature.
The bill comes as housing affordability remains a major voter concern ahead of the November midterm elections. Lawmakers from both parties have faced pressure to respond to high rents, tight housing supply and rising barriers for first-time homebuyers. Several senators missed the vote after severe thunderstorms disrupted flights in the Washington area and caused a ground stop at Ronald Reagan National Airport.
Bill targets large home investors
One of the most closely watched parts of the legislation seeks to restrict large institutional investors from buying more single-family homes. Under the proposal, corporate investors that already own 350 or more properties would be barred from purchasing additional single-family houses. The section, titled “Homes Are For People, Not Corporations,” is intended to prevent families from being priced out or outbid by major investment firms.
The final bill followed months of negotiations between the Senate and House. Earlier versions passed separately in each chamber before lawmakers reached a compromise. The Senate accepted several House-backed provisions but dropped a proposal that would have required major investors owning or building at least 350 single-family homes to sell those properties after seven years.
Construction and zoning reforms included
The legislation also aims to expand housing supply through grants and financing changes. It creates a $200 million annual competitive grant programme for cities and local governments that increase housing construction or reform restrictive zoning policies. It also allows Community Development Block Grant funding to be used directly for affordable housing construction and requires recipients to maintain a database of undeveloped public land.
The bill establishes a pilot programme to convert vacant commercial and industrial buildings into affordable homes. It also removes the federal chassis rule for manufactured housing, a change supporters say could reduce the cost of a new manufactured home by up to $10,000.
Other provisions streamline environmental reviews, raise the Public Welfare Investment cap for banks from 15 percent to 20 percent and increase private financing limits under Section 8 to support rehabilitation of older public housing. Together, the changes are designed to increase supply, reduce costs and expand affordable housing investment.
