The Senate has passed the Road to Housing Act which would incentivize changes in local governments’ zoning and land use policies, authorize new housing construction and rehabilitation grant programs, modify the Community Reinvestment Act, and reduce federal environmental review requirements, among other provisions.

The House is expected to pass its own version of this legislation that incorporates most of what the Senate has approved. Some of the more prominent changes this legislation is expected to bring include:

• An increased cap on public welfare investments by banks in affordable housing and community development projects, from 15% to 20%. This will allow banks, already major investors in LIHTC properties, to invest a greater amount in affordable housing.
• Reduced delays in HUD inspections by allowing units financed through certain federal housing programs—the Low-Income Housing Tax Credit (LIHTC), the HOME Program, and USDA’s Rural Housing Service—to automatically meet Housing Choice Voucher (HCV) inspection requirements if they passed an inspection within the past year.
• Allowance for new landlords to request advance inspections, helping expand housing options for voucher holders and incentivizing greater landlord participation in the HCV program.
• Streamlined the National Environmental Policy Act (NEPA) review process for a broad range of federally supported housing-related activities—including small-scale construction, rehabilitation, and infill development—by expanding categorical exclusions to reduce delays and lower administrative burdens.

For a deep dive on this legislation please click on the Bipartisan Policy Center’s report at the link below: https://bipartisanpolicy.org/explainer/whats-in-the-housing-for-the-21st-century-act/