A transformative substitute amendment, v7 introduces several new programs and significant policy shifts across multiple titles. Key changes include new programs for Rental Assistance Demonstration, CDBG Disaster Recovery, and manufactured housing community grants, along with a new Moving to Work cohort. It also modifies FHA appraisal requirements and makes substantial changes to banking regulations, while removing several provisions related to bank acquisitions and a discretionary surplus fund.
21st Century ROAD to Housing Act
- Sponsor
- Rep. Hill, J. French [R-AR-2]
- Committees
- Financial Services Committee (primary)
- Last action
- Jul 11, 2026
Bottom line
The bill comprehensively reforms federal housing policy to boost supply and affordability, while also including a major, unrelated prohibition on central bank digital currency, all without authorizing new federal funds.
What it actually does
This omnibus bill, titled the '21st Century ROAD to Housing Act,' aims to address housing supply and affordability by reforming various federal housing programs, streamlining regulations, and introducing new initiatives. It includes provisions to modernize FHA and Rural Housing Service loan programs, establish new grant programs for housing development and repairs, enhance oversight, and address specific issues like manufactured housing standards and institutional investor ownership of single-family homes. Additionally, it contains a significant, unrelated provision prohibiting the issuance of a central bank digital currency.
Proponents argue
Supporters argue that this bill is a critical step to alleviate the nationwide housing crisis by removing regulatory barriers, incentivizing diverse housing types, and modernizing outdated federal programs. They contend that streamlining environmental reviews, increasing FHA loan limits, and promoting manufactured housing will significantly increase housing supply. Proponents also highlight the benefits of programs like Whole-Home Repairs and the Long-Term Disaster Recovery Fund in supporting vulnerable populations and improving community resilience.
Opponents contend
Critics may argue that while some housing reforms are welcome, the omnibus nature of the bill, particularly the inclusion of the central bank digital currency prohibition, is an inappropriate use of a housing vehicle. Concerns might also be raised about the effectiveness of reforms without new funding authorizations, potentially shifting burdens or creating unfunded expectations. Some may also oppose specific provisions like the ban on large institutional investors, arguing it could distort market dynamics or limit capital for housing development.
The bill is extensive and covers a wide range of complex policy areas, requiring significant time to read and understand. Its omnibus nature means that a casual reader would struggle to grasp all implications within a short timeframe.
Title I, Sec. 102
Federal Guidelines for Point-Access Block Buildings
This section directs the Secretary of Housing and Urban Development (HUD) to issue guidelines for states, territories, tribes, and localities to facilitate the permitting of 'point-access block residential buildings' (single-stair buildings up to 6 stories). It encourages coordination with the International Code Council and authorizes competitive grants for pilot projects to evaluate the safety and cost-effectiveness of these buildings. This aims to increase housing supply, particularly in high-cost areas, by promoting more efficient building designs.
Supporters argue
Supporters argue that single-stair buildings are a safe and cost-effective way to increase housing density and affordability, especially in urban areas. They contend that current building codes often unnecessarily restrict these efficient designs, and federal guidance will help overcome local resistance and accelerate adoption.
Critics contend
Some critics, particularly fire safety advocates, might raise concerns about potential safety risks associated with single-stair buildings, arguing that current multi-stair egress requirements are essential for occupant safety during emergencies. They may worry that promoting these designs could compromise safety standards.
Tradeoffs
The provision balances the goal of increasing housing supply and affordability with maintaining robust fire safety standards. It seeks to find a middle ground by developing guidelines and testing efficacy, rather than mandating immediate adoption.
Title I, Sec. 105
FHA Small-Dollar Mortgages Pilot Program
This section authorizes the Secretary of HUD, through the Federal Housing Commissioner, to establish a pilot program to increase access to small-dollar mortgages (loans of $100,000 or less for 1-4 unit principal residences). The program may include direct payments to incentivize originations, adjustments to FHA terms/costs, grants for mortgagors (down payments, closing costs), outreach, and technical assistance. The program sunsets after 4 years, with annual reporting requirements.
Title II, Sec. 202
Whole-Home Repairs Act Pilot Program
This section authorizes a pilot program providing grants to 'implementing organizations' (local governments, states, tribes, nonprofits) to administer whole-home repairs for eligible homeowners and landlords. Repairs cover accessibility, habitability, safety, and energy/water efficiency. Homeowners receive grants, while eligible landlords (owning fewer than 10 properties, majority affordable units) receive forgivable loans, contingent on maintaining affordability and extending leases for 3 years post-repair. The program sunsets October 1, 2031.
Title II, Sec. 204
Addition of Affordable Housing Construction as an Eligible CDBG Activity
This section amends the Housing and Community Development Act of 1974 to add the new construction of affordable housing as an eligible activity for Community Development Block Grant (CDBG) funds. However, it caps the amount that can be used for new construction at 20% of the recipient's allocation. It also clarifies that the low- and moderate-income requirement for CDBG funds applies to new construction activities.
Title II, Sec. 206
Unlocking Housing Supply Through Streamlined and Modernized Reviews Act (NEPA Streamlining)
This section directs the Secretary of HUD to expand and reclassify certain housing-related activities under administrative regulations to streamline environmental reviews under the National Environmental Policy Act (NEPA). It moves various activities, such as tenant-based rental assistance, supportive services, minor public facility repairs, rehabilitation of 1-4 unit buildings, and certain infill projects, into categories that require less extensive environmental review (exempt or categorical exclusions). The goal is to accelerate housing development.
Title II, Sec. 211
Housing Affordability Act (FHA Multifamily Loan Limit Increases)
This section significantly increases the statutory per-unit mortgage limits for various FHA multifamily housing programs (Sections 207, 213, 220, 221, 231, 234 of the National Housing Act). For example, the limit for a 4-bedroom unit under Section 207(c)(3)(A) increases from $70,200 to $308,880. It also updates the annual adjustment mechanism for these limits, linking it to the Price Deflator Index of Multifamily Residential Units Under Construction. The bill requires a study on the impacts of these increases.
Title III, Sec. 301
Housing Supply Expansion Act (Manufactured Housing Definition and State Certifications)
This section expands the definition of 'manufactured home' in the National Manufactured Housing Construction and Safety Standards Act of 1974 to include homes built 'with or without a permanent chassis.' It directs HUD to issue new standards for homes built without a permanent chassis and requires states to certify annually that their laws and regulations treat all manufactured homes (with or without chassis) equally for financing, title, insurance, etc. States failing to certify face a prohibition on the manufacture, installation, or sale of covered manufactured homes within their borders.
Title IV, Sec. 403
Appraisal Industry Improvement Act
This section amends appraisal standards for FHA-insured mortgages, requiring appraisers to be state-certified/licensed, meet competency rules, and have verifiable education in FHA appraisal requirements. It also allows the Appraisal Subcommittee to adjust annual registry fees for appraisal management companies, adds state-credentialed trainee appraisers to the national registry, and permits state-certified appraisers to use trainee assistance. It also mandates a GAO study on workforce needs and expands the Appraisal Subcommittee to include VA, USDA, and HUD.
Title V, Sec. 501
HOME Investment Partnerships Reauthorization and Reform Act
This title reauthorizes the HOME Investment Partnerships Program and introduces several reforms. Key changes include: expanding eligible families to those with incomes up to 100% of area median income (AMI) for some purposes, allowing participating jurisdictions to use HOME funds for infrastructure improvements in non-entitlement areas (with labor standards), removing per-unit investment limitations, and providing qualification exceptions for affordable rental units with tenant-based assistance. It also streamlines environmental reviews for certain HOME activities and makes administrative adjustments.
Title V, Sec. 502
Rural Housing Service Reform Act
This section introduces several reforms to Rural Housing Service (RHS) programs. It applies multifamily mortgage foreclosure procedures to RHS loans and preserves rental assistance contracts upon foreclosure. It mandates a study on RHS loan subsidies and recapture, authorizes staffing and IT upgrades for RHS, and permanently establishes the Housing Preservation and Revitalization Program. It also modifies loan and grant limits for minor farm housing improvements, adjusts rural development voucher amounts and eligibility, and extends loan terms for Section 502 loans.
Title V, Sec. 504
Reforming Disaster Recovery Act (CDBG-DR Program and Long-Term Disaster Recovery Fund)
This section establishes a permanent Community Development Block Grant Disaster Recovery (CDBG-DR) Program and a 'Long-Term Disaster Recovery Fund' within the Treasury. It authorizes HUD to make CDBG-DR grants from this Fund for disaster relief, long-term recovery, and mitigation in catastrophic major disaster areas, using a formula allocation. The bill also establishes an Office of Disaster Management and Resiliency within HUD, mandates data sharing agreements with FEMA and SBA to prevent duplication of benefits, and sets requirements for grantee plans, performance reviews, and financial controls. The CDBG-DR program sunsets after 3 years.
Title VIII, Sec. 804
GAO Studies on Workforce Housing, Elderly/Disabled Housing, Superfund Proximity, and Residential Heirs Property
This section mandates four separate studies by the Government Accountability Office (GAO). These include: 1) obstacles middle-income households face in securing affordable housing and recommendations for 'workforce housing' programs; 2) barriers to improving housing for elderly or disabled persons; 3) the number of residential dwelling units (including public housing) located within 1 mile of Superfund sites; and 4) a comprehensive study on 'residential heirs property,' its consequences, available resources, and recommendations to reduce its occurrence.
Title X, Sec. 1001
Homes Are For People, Not Corporations (Prohibition on Large Institutional Investor Purchases of Single-Family Homes)
This section prohibits 'large institutional investors' (entities with investment control over 350+ single-family homes) from purchasing single-family homes. It includes several exceptions, such as newly constructed homes, build-to-rent programs, renovate-to-rent programs, and specific homeownership programs that benefit renters. The prohibition takes effect 180 days after enactment and sunsets after 15 years. It also establishes a HUD renter outreach resource for disputes and mandates civil penalties for violations, with funds transferred to the HOME program. GAO and HUD reports on the impact are required.
Title XI, Sec. 1101
Central Bank Digital Currency Prohibition
This section amends the Federal Reserve Act to prohibit the Board of Governors of the Federal Reserve System or a Federal Reserve bank from issuing or creating a central bank digital currency (CBDC) or any substantially similar digital asset, either directly or indirectly through an intermediary. An exception is made for dollar-denominated currency that is open, permissionless, private, and fully preserves the privacy protections of physical currency. This prohibition sunsets on December 31, 2030.
States that no additional funds are authorized to be appropriated to carry out the requirements of this Act or any amendment made by this Act.
Title XII, Sec. 1202
Why it matters:This is a standard legislative practice to avoid direct appropriations in an authorizing bill, often to facilitate passage by avoiding scoring as a direct spending bill or to defer difficult funding decisions to the appropriations process. However, in an omnibus bill with many new mandates, it can create the impression of significant new federal action without the corresponding financial commitment.
Case for: Proponents would argue that this clause ensures fiscal discipline by not mandating new spending and allows appropriators to prioritize funding based on current budget realities. It enables the authorization of important policy changes without immediately increasing the national debt.
Case against: Critics would contend that authorizing numerous new programs and reforms without simultaneously authorizing funding creates unfunded mandates or sets up programs for failure due to lack of resources. It can be seen as a way to claim credit for addressing issues without making the necessary financial commitment, potentially leading to implementation challenges for agencies.
Estimated impact: This clause means that while the bill creates many new federal responsibilities and programs, their actual implementation and scale will depend entirely on future appropriations acts. It effectively makes many of the bill's authorizations contingent on subsequent funding decisions.
Prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) or similar digital asset, with an exception for open, permissionless, private, dollar-denominated currency that preserves physical currency privacy. This prohibition sunsets on December 31, 2030.
Title XI, Sec. 1101
Why it matters:This is a classic example of a policy rider. It addresses a highly contentious and distinct policy issue (the future of digital currency) that is not germane to housing. It was likely attached to this omnibus vehicle to ensure its passage, as it might face greater scrutiny or difficulty passing as standalone legislation.
Case for: Proponents argue that a CBDC poses significant privacy risks and could grant the government undue control over financial transactions. They contend that this prohibition protects individual liberties and prevents the Federal Reserve from unilaterally implementing a potentially transformative and controversial financial system without explicit congressional approval. The sunset allows for future reevaluation.
Case against: Critics argue that prohibiting a CBDC stifles innovation and could put the U.S. at a disadvantage in the global digital economy. They believe a well-designed CBDC could offer benefits like financial inclusion, payment efficiency, and a stable digital asset, and that privacy concerns can be mitigated. Its inclusion in a housing bill is seen as an inappropriate legislative tactic.
Estimated impact: This provision prevents the Federal Reserve from moving forward with a U.S. CBDC for several years, impacting the trajectory of digital currency development and policy in the United States. It maintains the status quo regarding the nature of the U.S. dollar in its digital form.
Sets the effective date for the prohibition on large institutional investor purchases of single-family homes to 180 days after enactment and includes a sunset clause, repealing the prohibition 15 years after its effective date.
Title X, Sec. 1001(f)
Why it matters:This is a common legislative tactic. The 180-day delay allows affected entities to adjust their business models and for regulators to issue guidance, mitigating immediate market disruption. The 15-year sunset is a political compromise, allowing the policy to be enacted while deferring a final, permanent decision and providing an opportunity to evaluate its long-term impacts before it expires, potentially making the initial passage easier.
Case for: Proponents argue that the delayed effective date allows for an orderly transition and the development of necessary regulations, while the sunset ensures that the policy will be re-evaluated after sufficient time to assess its actual impact on the housing market, homeownership, and rental supply. This prevents a permanent, potentially unforeseen, market distortion.
Case against: Critics might argue that a 15-year sunset undermines the long-term certainty and effectiveness of the prohibition, as institutional investors might simply wait out the period or structure investments to resume after the sunset. They may also contend that the delay in implementation allows investors to accelerate purchases before the ban takes effect.
Estimated impact: The sunset clause means that the significant market intervention of prohibiting institutional investor purchases is temporary, creating a 15-year window for its effects to be observed and debated. The 180-day effective date provides a short grace period for market adjustment.