Key points:
- Senate Banking Committee unanimously advances ROAD to Housing Act of 2025.
- Legislation aims to address escalating US housing crisis with comprehensive reforms.
- The bill establishes a $200 million annual Innovation Fund for local housing reforms.
In a rare show of unity on Capitol Hill, the Senate Banking, Housing, and Urban Affairs Committee voted unanimously—24 to 0—on July 29 to advance the ROAD to Housing Act of 2025. The legislation, officially titled the “Renewing Opportunity in the American Dream (ROAD) to Housing Act,” is being hailed as the most comprehensive federal housing package since the Great Recession, with broad bipartisan backing and endorsements from across the political and housing policy spectrum.
The bill seeks to address the nation’s escalating housing crisis by tackling a wide range of issues: boosting housing supply, reducing regulatory barriers, modernizing financing systems, improving rural and manufactured housing access, and enhancing oversight and accountability across key federal housing programs. The legislation draws on at least 27 previously introduced bills—23 of which had bipartisan sponsorship—and incorporates recommendations from groups like the Bipartisan Policy Center (BPC), which has long advocated for bold federal action on housing.
“America’s housing crisis has been silent for too long, but it’s silent no more—and the Senate has heard the voices of so many Americans struggling with high housing costs loud and clear,” said Ron Terwilliger, founder of BPC’s J. Ronald Terwilliger Center for Housing Policy. “Many of the bills in this package closely align with the priorities we have identified in our American Housing Act of 2025, showing that Congress can find common ground on an issue that impacts so many.”
Among the most notable reforms is the elimination of the so-called “chassis rule”—a federal regulation requiring that manufactured homes retain a permanent steel chassis to qualify for certain financing and zoning designations. Critics say the rule treats these homes as movable trailers rather than permanent structures, reinforcing stigma and inflating costs.
Gary Winslett, a policy advocate and housing expert, called the chassis requirement “the dumbest rule you’ve never heard of.” In a post on The Rebuild, Winslett wrote, “The chassis requirement reinforces stigma, makes it easier for local zoning laws to exclude low-income and working-class families, and harder for SMH [small manufactured housing] to be financed. It justifies exclusionary zoning and treats homes as movable, even when they aren’t. That adds $5,000 to $10,000 per unit, a huge burden on rural and working-class families. Repealing it would cut costs and expand access.”
Winslett praised the ROAD Act’s inclusion of the Housing Supply Expansion Act (Section 301), introduced by Representatives Ruben Gallego and Thom Tillis, which formally repeals the chassis rule. In a detailed Twitter thread, he explained that the legislation also reforms lending regulations for manufactured housing (Sections 302–303), funds HUD’s Preservation and Reinvestment Initiative for Community Enhancement (PRICE) grants (Section 304), and expands rural rental assistance (Section 503).
The bill also includes a sweeping set of proposals to ease regulatory bottlenecks. Sections 207 and 208, for example, simplify compliance with the National Environmental Policy Act (NEPA), particularly for infill development and small-scale housing. These provisions authorize HUD to delegate environmental reviews to states and local governments and expand categorical exclusions to reduce permitting delays and administrative overhead.
To incentivize housing innovation at the local level, the bill establishes a $200 million annual Innovation Fund (Section 209) to reward jurisdictions that implement reforms such as streamlined permitting, increased density, or zoning modernization. Another provision, the Accelerating Home Building Act (Section 210), provides grants to local governments and tribes to adopt pre-approved building designs like accessory dwelling units (ADUs) and duplexes, with 10% of funds reserved for rural areas.
In addition to streamlining development, the bill promotes new housing near transit hubs through the Build More Housing Near Transit Act (Section 211) and supports the adaptive reuse of vacant commercial buildings into affordable housing under the RESIDE Act (Section 212). Together, these provisions reflect a growing federal push to align transportation and housing policy.
The ROAD Act also targets long-standing challenges in mortgage access and financing. Sections 401 and 402 focus on small-dollar mortgages—loans of $100,000 or less—by directing the Consumer Financial Protection Bureau (CFPB) to study originator compensation practices and reevaluate regulatory thresholds. Section 403, the Appraisal Industry Improvement Act, reforms appraisal licensing, expands training pathways, and funds grants to support a more robust and diverse appraiser workforce.
In a nod to the popular Whole-Homes Repairs concept that began in Pennsylvania, Section 204 creates a HUD-administered pilot program offering grants and forgivable loans for homeowners and landlords to conduct home repairs and retrofits. Winslett said the proposal could help “stabilize aging housing stock that tends to be naturally more affordable.”
The legislation also boosts public-private investment through the Community Investment and Prosperity Act (Section 205), led by Senator Tim Scott. This provision raises the statutory cap on public welfare investments from 15% to 20%, unlocking billions in new capital for affordable housing, financial education, and community development.
“Our regulatory framework should encourage investment in affordable housing and community development projects in communities that need it most, but outdated laws are restricting financial institutions,” Scott said in a press release. “This bill makes commonsense changes to unlock capital and increase investment opportunities.”
Other highlights include reforms to the Rental Assistance Demonstration (RAD) program (Section 201), an increase in FHA multifamily loan limits (Section 213), reauthorization of the HOME Investment Partnerships Program (Section 502), and new programs to expand landlord participation in the Housing Choice Voucher program (Section 405).
The bill also includes veteran-focused provisions such as the VALID Act (Section 602), which enhances mortgage disclosures for veterans, and Section 603, which ensures that disability benefits are not counted as income for HUD-VASH eligibility.
The legislation’s final titles focus on governance, oversight, and coordination. Section 701 mandates annual testimony from federal housing agency leaders. Section 705—the Appraisal Modernization Act—requires lenders to standardize second appraisal policies and instructs the GAO to study the feasibility of a consolidated public appraisal database. Sections 801–803 direct interagency collaboration between HUD, USDA, and the VA and propose joint environmental reviews and evaluations of work requirements in subsidized housing.
A House markup of the ROAD to Housing Act is expected this fall. If enacted, the bill would build upon housing provisions from the recent reconciliation package, though gaps remain—particularly around expanding the Low-Income Housing Tax Credit (LIHTC), which was not fully addressed in this package.
Winslett emphasized that each element of the bill would be impactful in its own right but that collectively, “this is tremendously positive legislation.”
He credited both Senate Banking Committee Chair Tim Scott and Ranking Member Elizabeth Warren for their leadership, writing: “Each one of these would be good reforms on their own—collectively this is tremendously positive legislation… Well done guys!”
