21st Century ROAD to Housing Act

This bill tackles the affordable housing shortage from multiple angles that would benefit renters. It pushes for zoning reforms to allow more housing types (duplexes, triplexes, accessory dwelling units), creates grant programs to reward cities that build more housing, converts vacant commercial buildings into affordable rentals, and preserves existing affordable units through the Rental Assistance Demonstration program. Renters in low- and moderate-income brackets would particularly benefit from provisions requiring that a majority of new units remain affordable.

The Community Investment and Prosperity Act raises the investment limit for national banks and Federal Reserve member banks from 15% to 20% of capital and surplus for community development investments, potentially increasing capital available for affordable housing projects. The bill also creates incentives for small dollar mortgage lending and reforms appraisal industry workforce training, which could benefit small mortgage lenders and appraisal businesses.

The Whole-Home Repairs pilot would provide grants to low- and moderate-income homeowners (earning up to 80% of area median income) to fix safety hazards, improve accessibility, and boost energy efficiency. The bill also modernizes manufactured housing loan limits, expands FHA construction financing for modular homes, and creates pre-reviewed home designs to speed up and lower the cost of building new homes. Small dollar mortgage reforms could make it easier for people to get loans under $100,000 for modest homes.

The bill reauthorizes and improves the HOME Investment Partnerships Program, increases administrative funding for participating jurisdictions from 10% to 15%, reforms homeownership resale restrictions, and strengthens enforcement for noncompliance. It also makes the Rental Assistance Demonstration program permanent, creates a new CDBG Disaster Recovery program with a dedicated fund, and establishes an Innovation Fund with $200 million per year authorized for communities that grow their housing supply. These changes aim to make federal housing assistance more effective and reach more people.

Several provisions specifically target veterans. The VA Home Loan Awareness Act adds a disclaimer on loan applications alerting military borrowers they may qualify for VA home loans. The VALID Act requires FHA disclosures to include VA loan comparisons. The Housing Unhoused Disabled Veterans Act excludes VA disability benefits from income calculations when determining eligibility for HUD-VASH supportive housing vouchers, making it easier for disabled veterans to qualify for housing assistance.

The bill strengthens the connection between veterans and housing benefits by requiring lenders to inform military borrowers about VA home loan options right on the loan application. It also excludes VA disability compensation from income eligibility calculations for HUD-VASH housing vouchers, which means more disabled veterans could qualify for supportive housing. Additionally, HUD, USDA, and VA are directed to coordinate better on housing programs through a new memorandum of understanding.

The Whole-Home Repairs pilot specifically covers accessibility modifications like bathroom and kitchen updates, grab bars, ramps, doorway widening, and lifting devices for people with physical disabilities and older adults. All repairs funded through the program must comply with federal accessibility requirements. The bill also prioritizes converting vacant buildings into housing that serves disabled individuals and requires compliance with Section 504 of the Rehabilitation Act.

The bill directs HHS and HUD to study the links between affordable health care access and homelessness, and to analyze the benefits of better coordination between health care organizations, mental health service providers, and housing providers. It also creates demonstration authority for partnerships between housing and health care organizations specifically targeting people with serious mental illness, chronic disabilities, and substance use disorders who are experiencing homelessness.