Opening Lines – Bipartisan Affordable Housing Legislation Just Cleared the Senate. Here’s What It Could Mean for Cities.

March 31, 2026

Source: www.smartcitiesdive.com, Ryan Kushner, Editor, First Published October March 13th, 2026

The 21st Century ROAD to Housing Act does not tamper with local zoning regulations or include unfunded mandates, experts say.

The Act combines a number of provisions from separate bills introduced in the House and Senate last year, containing 84% of the House bill’s approved housing provisions, according to Scott.

The legislation would update the HOME Investment Partnership Program, the federal government’s largest affordable housing construction program, by streamlining funds for workforce housing and initiating a pilot program to convert vacant buildings into residential housing. It would also expand the annual grant to cover eligible infrastructure priorities for new housing.

The Community Development Block Program — once limited to affordable housing repairs and refurbishments — would also be expanded under the bill to include new housing construction for low- and moderate-income residents, according to NLC.

The bill avoids any unfunded mandates for local governments, Michael Wallace, NLC’s legislative director for community and economic development, wrote in a March 6 blog post.

The bill also targets some regulatory requirements, which U.S. Department of Housing and Urban Development Secretary Scott Turner says account for approximately 25% of the cost of a new single-family home and 40% of the cost of a multifamily development. One such provision streamlines National Environmental Policy Act reviews by deferring to state and local government environmental reviews that meet federal standards.

The bill also lifts some costly requirements for certain housing types, such as manufactured housing and modular homes, according to the Bipartisan Policy Center.

The Democratic Mayors Association lauded the legislation’s passage and stressed the need for a strong federal partnership in addressing the housing crisis.

“Passing the 21st Century ROAD to Housing Act is an important step forward in addressing the need for affordable housing, which is among the most urgent challenges facing our communities,” the organization stated.

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