The 21st Century ROAD to Housing Act is headed to the president’s desk after clearing both chambers of Congress by wide margins. The U.S. House of Representatives approved the bill on a 358-52 vote, following an earlier 85-5 vote in the Senate. President Trump is expected to sign the legislation into law as soon as Wednesday.
As enacted by Congress, the legislation retains a provision restricting institutional ownership of single-family homes, according to the CRE Finance Council. The measure continues to carve out an exception for build-to-rent housing, and it does not require large investors to sell their existing single-family portfolios. The CRE Finance Council has released a detailed member summary explaining the single-family ownership section of the act.
A central feature of the bill is a long-discussed proposal to raise banks’ public welfare investment cap from 15% to 20%. The Affordable Housing Tax Credit Coalition said this higher cap is expected to expand the supply of private capital available for affordable housing development. The group also indicated that the change will help maximize the effect of the previously enacted expansion of the Housing Credit contained in last year’s One Big Beautiful Bill Act. The public welfare investment cap was last increased in 2006.
Multifamily industry organizations have publicly endorsed the final legislation. In a joint statement first issued when a bicameral agreement was announced and reissued after the House vote, the National Multifamily Housing Council and National Apartment Association said the act contains a range of reforms intended to modernize federal housing programs. They cited provisions designed to reduce development barriers and support the production and preservation of additional housing across the country. The two groups said the revised bill is positioned to help communities increase housing supply, improve affordability, and support access to both rental housing and homeownership.
The joint statement from NMHC and NAA characterized the amended 21st Century ROAD to Housing Act as a significant achievement for Congress, the Administration, and the public. The organizations framed the legislation as an important step toward addressing nationwide housing challenges.
Enterprise Community Partners also welcomed the bill’s passage. CEO Shaun Donovan, who previously served as Secretary of Housing and Urban Development, noted that the organization helped shape several key elements of the act. Those provisions include expanding the Rental Assistance Demonstration program, reauthorizing the HOME program, extending Community Development Block Grant Disaster Recovery authority, increasing the public welfare investment cap, and advancing the Rural Housing Service Reform Act to strengthen protections for rural communities.
Donovan emphasized that the act’s ultimate impact will hinge on execution. He said that federal agencies, state and local governments, and housing practitioners will determine how effectively the new tools are deployed. In his statement, Donovan added that the success of the legislation should be judged by tangible outcomes such as more homes delivered, improved affordability, and meaningful benefits for families across the United States.
