House and Senate reach deal on housing supply legislation

The House and Senate reached an agreement Tuesday on legislation intended to increase housing supply and improve affordability after months of negotiations between the chambers and the two parties. The final text incorporates revisions to earlier versions that had passed each chamber.

It adds the BUILD NOW Act directing federal grants toward localities that allow more construction and includes grants for manufactured housing under the Preservation and Reinvestment Initiative for Community Enhancement Act.

Key provisions The bill eases some federal regulations and encourages states and localities to change land-use rules. It also contains a provision limiting large investors from purchasing single-family homes, though language requiring build-to-rent investors to sell within seven years was removed.

Additional sections ease regulations on community banks and add a three-year sunset on the CDBG-DR program.

Path forward The Senate is scheduled to vote later Tuesday on a procedural step to advance the measure. The House returns from recess next Tuesday, after which the bill could move to the president for signature. Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott said the bill resulted from years of work to lower costs and expand supply.

House Financial Services Committee Chairman French Hill said the agreement shows that bipartisan, bicameral legislating can produce results. Banking committee ranking member Elizabeth Warren described the legislation as the biggest housing bill in more than 30 years.