The House of Representatives overwhelming passed the 21st Century ROAD to Housing Act that seeks to boost the nation’s housing supply.
Approved 396-13, the new House version removes a controversial build-to-rent (BTR) sales provision that would have required purpose-built single-family rental homes to be sold within seven years, according to housing industry leaders.
The change was strongly supported by the National Association of Home Builders (NAHB), National Multifamily Housing Council, National Apartment Association, and other groups, which estimated the original measure could have reduced the rental supply by 40,000 units to 72,000 units each year.
“Led by House Financial Services Committee chairman French Hill and ranking member Maxine Waters, the package eliminates a forced-sale provision on rental housing that would have reduced supply, raises and indexes multifamily loan limits to help spur new apartment development, and provides meaningful relief to community banks,” said NAHB chairman Bill Owens, a home builder from Worthington, Ohio. “We urge the Senate to move quickly to send a once-in-a-generation housing bill to President Trump to expand housing supply and address America’s housing affordability challenges.”
The House bill also includes a number of provisions aimed at boosting housing production, including increasing Federal Housing Administration-insured multifamily loan limits and establishing guidelines for zoning and land-use policies.
Noteworthy for the affordable housing industry, the bill includes a proposal to increase banks’ public welfare investment (PWI) cap from 15% to 20%, which would provide additional capacity for banks to invest in affordable housing developments.
“Lifting the public welfare investment cap will unlock billions of dollars in new private investment in the housing credit, and additional changes in the updated House legislation will further strengthen our ability to finance more affordable housing to address our nation’s immense need,” said Emily Cadik, CEO of the Affordable Housing Tax Credit Coalition.
Increasing the PWI cap was a priority for many in the affordable housing field.
“Today’s vote margin, 396-16, is very meaningful and hopefully provides the impetus for Senate action in June, and I hope that the industry advocates keep up their Senate outreach to the respective offices; both at home and in D.C. during recess,” added Bob Moss, founding partner at MG Housing Strategies. “Most importantly, we want the PWI cap lifted from 15% to 20%.”
Others also voiced their hopes that the Senate will pass the legislation.
“The Senate’s quick passage of this bill and President Trump’s signature will help advance meaningful housing affordability solutions for our nation’s homeowners and renters,” said Bob Broeksmit, president and CEO of the Mortgage Bankers Association.
In a joint statement, Sen. Tim Scott (R-S.C.), chair of the Senate Banking, Housing, and Urban Affairs Committee, and ranking member Elizabeth Warren (D-Mass.), came short of endorsing the amended House bill, saying “there’s still work to be done, and we are committed to continuing to work with the White House and our colleagues in the House on a housing bill that can pass the Senate and get to the president’s desk.”