House Passes Bipartisan Housing Bill, Modernizing Rural Housing Programs

On February 9th, the U.S. House of Representatives overwhelmingly passed the Housing in the 21st Century Act by a vote of 390-9. Click here for a section-by-section summary of the bill. The package impacts nearly every federal housing tool used by local governments, regional development organizations, and rural communities, and for the first time, creates a new regional housing planning grant program for which NADO members are directly eligible. 

Back in the fall, the Senate passed similar legislation, the Road to Housing Act, which was supported by the White House.  With both chambers passing different proposals, they must now reconcile those differences through a conference committee or informal negotiations before voting on the negotiated proposal.   

Below is a breakdown of key provisions and updates in the bill: 

★ NEW REGIONAL HOUSING PLANNING GRANTS ★ 

A major win for regional development organizations if enacted, the bill establishes a new federal grant program specifically for regional housing planning. 

Eligible Applicants: state, local, and tribal governments, and regional planning agencies 

Eligible Activities for Regional Planning Agencies: Regional housing needs assessments, coordinating housing development with transportation planning, and the development of local or regional plans for community development 

HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM 

  • Expanded Income Eligibility: The bill raises the income eligibility thresholds for HOME-funded projects. 
  • Streamlined Environmental Review: To accelerate construction timelines, certain low‑impact rehabilitation and infill development projects would be exempt from full NEPA Environmental Impact Statements (EIS). 
  • Expanded Use for Infrastructure: Grantees that do not receive CDBG entitlement funds would be allowed to direct HOME dollars toward housing‑adjacent infrastructure. 
  • No Change to Davis–Bacon Requirements: Notably, unlike the Senate bill or the standalone HOME Reform Act, the House package does not alter the existing Davis–Bacon prevailing wage thresholds. 

COMMUNITY DEVELOPMENT BLOCK GRANT 

  • New Construction Becomes an Eligible Use: For the first time, CDBG funds could be used for new housing construction. 
  • Increased Transparency and Reporting: CDBG entitlement communities would now be required to submit non‑binding annual reports describing adopted or proposed zoning and land‑use changes that support increased housing supply and publish a public database of undeveloped, jurisdiction-owned land, enhancing transparency around potential development opportunities. 
  • Funding Formula Preserved: Unlike the Senate’s Road to Housing Act, the House bill does not tie CDBG allocations to local housing production levels. 

STRENGTHENING AND MODERNIZING THE RURAL HOUSING SERVICE (RHS) 

  • Expanded Access to USDA Home Repair Loans: Broadens eligibility and access to USDA Section 504 home repair loans and grants for low-income rural households.  
  • New Annual Reporting Requirements: To improve program accountability and visibility, USDA would be required to submit annual reports on the health and performance of all rural housing programs. These reports must also include detailed information on application review timelines for specific RHS loan and grant programs. 
  • GAO Review of USDA Technology Needs: Directs Government Accountability Office (GAO) to conduct a comprehensive assessment of USDA’s technology and system modernization needs.  

WHAT’S NEXT? 

Lawmakers must now reconcile differences between the House bill and the Senate’s Road to Housing Act before sending a unified package to the President. NADO will keep our members informed with any updates.   

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