Greg Rutolo | Loan Factory

Greg Rutolo | NMLS #34860 | email: gregory.rutolo@loanfactory.com

The nation’s housing affordability crisis has reached a critical point, but a new, bipartisan solution is on the horizon. The House of Representatives recently passed the Housing for the 21st Century Act (H.R. 6644), a landmark bill poised to significantly impact housing supply and streamline development across the country. Passed with overwhelming support (390-9), this legislation stands for one of the most consequential federal housing actions in a generation.

Here’s a breakdown of the key areas where this Act aims to deliver meaningful change:1. Regulatory Relief and Streamlining Development

A primary focus of the bill is cutting the red tape that often stalls housing projects. By reducing unnecessary regulatory barriers for builders and lenders, the Act aims to speed up construction and lower costs.

• The bill exempts certain low-impact infill development and rehabilitation projects from full environmental reviews (NEPA). This can significantly reduce administrative delays and costs.
• It provides grants to regional and local agencies to review and update local codes. These grants also help update zoning rules.

2. Modernizing Federal Housing Programs

The Act includes significant reforms to make existing federal resources more effective in addressing the affordable housing shortage.

• It modernizes the HOME Investment Partnerships Program (HOME Program). It raises the income eligibility for projects. This aims to better tackle gaps in workforce housing.
• The legislation also expands access to the U.S. Department of Agriculture’s (USDA’s) Section 504 Home Repair program, particularly supporting rural housing needs.

3. Boosting Supply with Innovative Construction

To directly tackle the 3.8 million home shortage, the bill embraces modern building techniques and housing types.

• It makes key changes to promote manufactured housing. It does this by eliminating the need that these homes include a permanent chassis. This change helps lower costs.
• The bill encourages a variety of mixed-income housing and infill development. This includes 2-4 units, and ADU’s. It gives communities more flexible options for rapid development.

The Housing for the 21st Century Act is a critical “down payment” toward solving America’s severe housing shortage. It now moves to the Senate, where continued bipartisan collaboration is essential to deliver a final package that expands housing opportunity and economic mobility nationwide.