Senate Passes 21st Century ROAD to Housing Act in 85-5 Vote

The Senate passed the 21st Century ROAD to Housing Act on Monday in an 85-5 vote. The legislation seeks to lower housing costs by streamlining environmental reviews, modernizing zoning rules, and expanding loan limits for multifamily construction. The bill advanced after the House and Senate reconciled separate versions.

The Senate first passed an earlier draft 89-10 on March 12, while the House approved an amended version 396-13 on May 20. Both chambers reached a final agreement Tuesday. The measure includes provisions to raise bank investment caps in affordable housing and allow up to 20 percent of Community Development Block Grant funds for new construction.

It also imposes a three-year sunset on the CDBG-DR program. Republican Arkansas Rep. French Hill said the legislation incorporates nine community banking bills along with language limiting institutional investors.

Republican Louisiana Sen. " Sen. " Rep. French Hill said the legislation represents a "meaningful step" toward affordability. Democratic Massachusetts Sen. " House Financial Services Committee ranking member Maxine Waters described it as "meaningful progress" while noting additional work remains.

The National Association of Home Builders called the package "historic" and said it would expand housing opportunities for buyers and renters. U.S. housing prices rose 2.4 percent year-over-year in March, with the median single-family home price at roughly $436,523.

Thirty-year fixed mortgage rates averaged near 6.02 percent. The construction industry faces an estimated shortfall of 349,000 net workers in 2026. The legislation does not directly address labor shortages or rising material costs, which increased 2.6 percent in June according to industry data.