Planning Creates Housing for the 21st Century

Last year, Congress began aggressive action on housing supply policy, potentially setting the stage for final action in 2026. In July, the Senate Banking Committee unanimously passed the Renewing Opportunity in the American Dream to Housing Act (ROAD to Housing). In December, the House took similar action with the Financial Services Committee approving the Housing for the 21st Century Act (Housing 21) on a resounding bipartisan vote of 50 – 1.

Bipartisan Housing Bills Target Affordability

Both measures represent the most comprehensive housing bills to pass through committee in more than a decade, and the bipartisan nature of the bills stood in stark contrast to the polarization that pervaded debate on Capitol Hill in 2025. The bills were carefully assembled to comprise proposals with existing bipartisan support and focused on two main challenges: how to reduce barriers to housing supply and affordability, and how to make existing programs more responsive to current housing needs.

The bills look likely to gain further momentum from an election-year focus across the political spectrum on affordability and lowering the cost of living. Off-year elections in New Jersey, Virginia, and elsewhere demonstrated continuing concern in the electorate about inflation and costs, with housing seen as a critical problem.

The White House has also demonstrated that cost of living and housing are important election-year issues by endorsing the bills and issuing its own policy proposals, including a new Executive Order aimed at limiting institutional investors in the single-family housing market. Other policies pushed by the Trump administration are boosting lending for homebuyers and loosening restrictions on the use of tax-deferred savings plans for downpayments.

Housing Bills Advance Amid Legislative Hurdles

While the political winds are clearly at the back of housing legislation in 2026, there are key challenges ahead. First, while ROAD and Housing 21 are very similar, they are not identical companion bills. So, a compromise will have to be reached by congressional leaders on which provisions to include in a final package. Second, although the bills have passed committee votes, they must still compete for time on the floor. Advocates are pushing for action by the full House of Representatives early this year to maintain momentum and allow time for final approval. Lastly, election-year dynamics will make passage of major bills harder as we creep closer to midterm elections. So, the calendar is also a challenge.

Comparing the two bills, it is evident that the similarities are significant. Both bills also contain some of APA's top federal housing priorities. In fact, many provisions were directly incorporated from previously introduced bills endorsed by APA. Among the areas of agreement between the bills are:

• Providing models and research for zoning and land-use reforms
• Creating a grant program for local pre-approved plans
• Streamlining targeted environmental reviews
• Updating the HOME program
• Improving USDA Rural Housing Service programs
• Eliminating the permanent chassis requirement for manufactured housing
• Increasing multifamily loan limits
• Reforming an array of current federal housing finance and other programs

Both bills aim to provide new support to local governments for reform and innovation on zoning and land use, but take slightly different approaches. Housing 21 creates a grant program to implement planning and community development activities. ROAD establishes an "innovation grant fund." Both programs are similar to the existing HUD PRO Housing program and would basically serve as an authorization for grants aimed at supporting reforms and plans.

Housing Bills Differ, Compromise Required

The two bills do have some important differences. Among the provisions included in the House bill but not in ROAD are:

• Providing guidelines for "single stair" / point-access block building regulation
• Conducting GAO studies on middle-income housing and residential building codes
• Requiring communities to identify regulatory barriers in CDBG consolidated plans

The Senate's ROAD to Housing also includes some elements that the House bill omits:

• Incentivizing housing in Opportunity Zones
• Creating a Whole-Home Repairs Pilot Program
• Encouraging federal transit grant recipients to promote TOD and housing reforms
• Reauthorizing the PRICE grant program
• Authorizing the CDBG-Disaster Recovery program
• Promoting modular housing reforms

Another important difference between the bills: a provision in the ROAD to Housing that would create an incentive to increase housing supply in CDBG funding, along with a corresponding penalty for not acting.

All these differences will have to be resolved before final action. But, despite the differences, the bills draw from the same toolkit of reforms and reflect broad and bipartisan agreement. While negotiations are never easy, there appears to be sufficient common ground to move a significant housing supply measure forward. Although there is good momentum for action, further advocacy is needed to urge Congress to prioritize action on housing despite time constraints and election-year pressure.

For planners, many of the provisions of these bills directly connect to ongoing housing planning, housing production, and code reform efforts. Planners have unique insights and expertise to share with policymakers to ensure that reforms actually produce results and have a chance to play a pivotal role in encouraging Congress to act on housing this year.

Top Image: iStock/Getty Images - benedek