The National Affordable Housing Management Association (NAHMA) expresses its appreciation and support to Congress for the bipartisan, bicameral passage of the 21st Century ROAD to Housing Act. This landmark legislation addresses the root causes of the nation’s housing supply shortage, currently estimated at 5.5 million units, by cutting red tape, modernizing legacy programs, and driving private capital into affordable housing development.
“The legislation recognizes that addressing the nation’s housing affordability challenges requires a practical, comprehensive approach: expanding supply, preserving existing affordable housing, modernizing federal housing programs, reducing unnecessary regulatory barriers, and strengthening the financing tools needed to support development and long-term operations,” NAHMA CEO Kris Cook, CAE, said.
The 21st Century ROAD to Housing Act introduces vital updates across federal housing programs that will streamline operations and rapidly expand the supply of affordable homes. NAHMA specifically applauds the inclusion of the following crucial provisions:
1. Modernizing and Expanding Affordable Housing Programs
- HOME Program Reauthorization: Section 501 reauthorizes and reforms the HOME Investment Partnerships Program to improve administration and facilitate critical affordable housing construction.
- RAD Program Expansion: Section 212 increases the Rental Assistance Demonstration (RAD) cap by 100,000 units while codifying essential tenant protections to ensure long-term housing preservation.
- CDBG New Construction: Section 204 adds affordable housing new construction as an eligible activity under the Department of Housing and Urban Development (HUD)’s Community Development Block Grant (CDBG) program.
- FHA Loan Limit Adjustments: Section 211 directs the Federal Housing Administration (FHA) to increase multifamily loan limits to better align with actual market construction costs.
- The RESIDE Act: Section 210 (Revitalizing Empty Structures Into Desirable Environments Act) creates a HOME pilot program dedicated to converting vacant and abandoned commercial or public buildings into attainable housing stock.
2. Cutting Regulatory Red Tape and Streamlining Reviews
- Environmental Review Reform: Section 205 (Better Use of Intergovernmental & Local Development for Housing Act) and Section 206 simplify National Environmental Policy Act reviews for small-scale and infill housing projects, accelerating the transition from planning to construction.
- Accelerated Voucher Inspections: Section 405 (Choice in Affordable Housing Act) reduces costly HUD inspection delays by allowing units recently inspected by other federal programs to automatically satisfy voucher requirements, encouraging greater landlord participation.
- Interagency Coordination: Sections 801 and 802 mandate HUD, the Department of Agriculture (USDA), and the Department of Veterans Affairs (VA) to eliminate bureaucratic duplication, specifically authorizing joint environmental reviews for projects co-funded by HUD and USDA.
3. Preserving Rural Housing & Enhancing Community Banking
- Rural Housing Service Reform: Section 502 delivers a historic fix by decoupling rental assistance from maturing mortgages, successfully preserving affordable housing access for 400,000 rural families.
- Boosting Private Investment: Section 203 (Community Investment and Prosperity Act) increases the Public Welfare Investment cap for supervised banks from 15% to 20%, unlocking billions in private banking capital for affordable housing.
4. Enhancing Property Standards and Resident Self-Sufficiency
- Temperature Sensor Pilot Program: Section 106 establishes a well-balanced HUD grant program to install temperature sensors in affordable units with tenant permission, ensuring strict compliance with housing quality standards.
- Economic Mobility Initiatives: Section 404 expands HUD’s Family Self-Sufficiency initiative to help low-income families grow asset savings and transition toward homeownership.
- Protecting Disabled Veterans: Section 602 permanently excludes veterans’ disability compensation from annual income limits under the Housing and Urban Development-VA Supportive Housing program, removing a systemic barrier to housing for homeless veterans.
“The 21st Century ROAD to Housing Act recognizes that solving the affordable housing crisis requires a holistic approach: scaling up supply, removing outdated regulatory bottlenecks, and preserving our existing housing stock,” Cook said. “NAHMA is grateful to Congress for its bipartisan leadership and looks forward to working with HUD, USDA, Treasury, the VA, and industry partners to support effective implementation of these important reforms.”
NAHMA looks forward to continuing to work with policymakers and federal agency partners to ensure these provisions are implemented in ways that support housing providers, protect residents, and strengthen affordable housing communities in urban, suburban, and rural markets nationwide.
NAHMA is the leading voice for the affordable housing management industry, promoting developing, managing and preserving quality affordable multifamily housing. NAHMA advocates for legislative and regulatory policy and provides affordable housing professionals with the knowledge to advance excellence in the communities they serve. NAHMA’s membership represents 75% of the affordable housing industry and includes its most distinguished multifamily owners and management companies. Visit www.nahma.org for more information.