U.S. Congress recently released a new bicameral compromise version of the 21st Century ROAD to Housing Act (the Road to Housing Act), marking the first time the legislation has received support from both chambers. The Senate advanced the bill (87-8) and is expected to vote this week, with a House vote is anticipated shortly thereafter before sending the bill to President Trump.
Key provisions in the bill include:
- Increased Housing Credit Investment Capacity: Raises the public welfare investment cap from 15 percent to 20 percent, expanding the ability of banks to invest in Low-Income Housing Tax Credit (LITHC) projects and potentially unlocking billions in additional capital for affordable housing development.
- Restrictions on Institutional Investors: Prohibits institutional investors from purchasing single-family homes, aimed at reducing competition with individual homebuyers. Legislative intent indicates the provision should not adversely impact LIHTC or other federally supported affordable housing programs.
- HUD Review of BABA Requirements: Directs the Department of Housing and Urban Development (HUD) to evaluate the Build America, Buy America (BABA) requirements and issue updated guidance, reflecting concerns that current rules increase costs and administrative burdens for affordable housing projects.
- Environmental Review Streamlining: Simplifies National Environmental Policy Act (NEPA) reviews for small and infill housing developments to accelerate project timelines.
The compromise bill represents a significant bipartisan step toward increasing housing supply and affordability, with a particular emphasis on expanding LIHTC investment capacity and reducing regulatory barriers to development.
Summer Associate Ashanti R. Nelson contributed to this report.
Harris Beach Murtha’s Affordable Housing Industry Team is monitoring this legislation and what it could mean for real estate, redevelopment and affordable housing activity. If you have questions for our lawyers, please reach out to attorney Michael A. Discenza at (212) 912-3605 and mdiscenza@harrisbeachmurtha.com; or the Harris Beach Murtha attorney with whom you most frequently work.
This alert is not a substitute for advice of counsel on specific legal issues.
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