ROAD to Housing Act of 2025

Key Points

• The bill encourages states and cities to reform zoning laws that block new housing. HUD would publish guidelines on reducing parking minimums, allowing accessory dwelling units, raising building heights, and enabling duplexes and triplexes by right. Cities that grow their housing supply get bonus Community Development Block Grant funding, while those that lag behind lose 10 percent.
• A new Whole-Home Repairs pilot program gives grants to homeowners and forgivable loans to small landlords earning under 80 percent of area median income for safety, accessibility, and energy upgrades. Landlords must cap annual rent increases at 5 percent or inflation, whichever is lower, for at least three years after repairs are done. The program is funded at up to $30 million.
• Manufactured homes built without a permanent chassis would now be treated the same as those built on one under federal and state law, expanding financing, insurance, and sale options. States must certify they treat these homes equally or face a ban on manufacturing and selling them. FHA loan limits for manufactured homes are significantly increased.
• A permanent Long-Term Disaster Recovery Fund is created within the CDBG program, replacing the current ad hoc appropriations process. At least 70 percent of disaster recovery funds must benefit low- and moderate-income people. Formula-based allocations must begin within 90 days of a presidential disaster declaration.
• Veterans' disability benefits under chapters 11 and 15 of title 38 would be excluded from income when determining eligibility for the HUD-VASH supportive housing program. The bill also requires a VA home loan awareness disclaimer on the Uniform Residential Loan Application so veterans know about their benefits.
• The bill authorizes $200 million per year for an Innovation Fund that rewards cities and local governments that have actually grown their housing supply. Grants range from $250,000 to $10 million and can be used for community development, infrastructure, water systems, or expanding attainable housing. At least 25 grants per year must be awarded across urban, suburban, and rural areas.