30th
June

2026

Congress Passes First Major Housing Bill in Decades: What’s in the 21st Century ROAD to Housing Act

Wyae’ Stewart, Senior Associate, Public Policy, OFN

June 30, 2026 –

Following final congressional passage, the sweeping housing package now awaits presidential action. Here’s what CDFIs and community development leaders need to know.

Read time: 6 minutes

After months of bipartisan negotiations, led by Senate Banking Committee Chairman Tim Scott (R-SC), Ranking Member Elizabeth Warren (D-MA), House Financial Services Committee Chairman French Hill (R-AR), and Ranking Member Maxine Waters (D-CA), Congress has finally passed the 21st Century ROAD to Housing Act. If enacted, it would become one of the most significant bipartisan housing packages in decades, bringing together more than 50 provisions to expand housing supply, preserve affordable housing, and improve housing affordability nationwide.

President Trump was originally expected to sign the legislation last week, but canceled the scheduled bill signing shortly before the ceremony. The President indicated he would delay action on the housing package until Congress advances the SAVE America Act, an unrelated elections bill that would establish new voter registration and identification requirements. President Trump now has 10 days, excluding Sundays and holidays, to sign or veto the legislation. If the President takes no action while Congress remains in session, it will automatically become law. As the bill awaits presidential action, below are several provisions most relevant to CDFIs and the communities they serve.

Expanding Housing Supply and Preserving Affordable Housing

Expanding housing supply and preserving existing affordable housing are central goals of the 21st Century ROAD to Housing Act. Several provisions included in the package strengthen federal housing programs that support housing production, rehabilitation, and long-term affordability.

HOME Investment Partnerships Program (Sec. 501): The bill reauthorizes and modernizes the Department of Housing and Urban Development’s (HUD) flagship affordable housing production program. HOME provides flexible funding for affordable housing construction, rehabilitation, and homeownership, while serving as critical gap financing for many CDFIs and affordable housing developers. The legislation expands flexibility for housing-related infrastructure, streamlines environmental reviews, and reduces administrative barriers to speed up project delivery. As part of our advocacy efforts, OFN joined a coalition of housing organizations advocating to strengthen and preserve the HOME program throughout the legislative process.
Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Program (Sec. 304): The bill authorizes HUD’s PRICE Program for seven years to preserve manufactured housing communities, one of the nation’s largest sources of naturally occurring affordable homeownership. For CDFIs, PRICE creates opportunities to pair mission-driven lending with federal investments to preserve affordable housing, improve aging infrastructure, and expand homeownership. After the provision was removed from the initial House proposal, OFN joined a coalition of 32 organizations urging Congress to restore it, making its inclusion in the final package a significant victory.
Rental Assistance Demonstration (RAD) Program (Sec. 212): The bill expands HUD’s RAD program, allowing public housing agencies to leverage private financing to rehabilitate aging public housing while maintaining long-term affordability. It increases the program cap by 100,000 units and permanently codifies tenant protections, creating additional financing opportunities for CDFIs while preserving affordable housing for residents.
Choice in Affordable Housing Act (Sec. 405): The bill streamlines Housing Choice Voucher inspections by recognizing recent inspections conducted through the Low-Income Housing Tax Credit (LIHTC), HOME, and U.S. Department of Agriculture (USDA) Rural Housing programs, reducing duplicative reviews that delay leasing. It also allows advance inspections for landlords, helping expand voucher acceptance and increase housing options for families.

Unlocking Private Capital for Community Development

Expanding affordable housing requires both public and private investment. CDFIs frequently partner with banks to finance affordable housing, community facilities, and small businesses, and the bill strengthens that financing ecosystem.

Community Investment and Prosperity Act (Sec. 203): The bill increases the Public Welfare Investment (PWI) cap from 15% to 20%, unlocking billions of dollars in additional private investment for affordable housing and community development. Because many banks have been approaching the previous cap, the change is expected to expand financing for LIHTC developments and create new opportunities for CDFIs and affordable housing developers.

Strengthening Rural Housing

Rural communities often face persistent housing challenges, including aging affordable housing, limited access to financing, and a shortage of rental homes. The 21st Century ROAD to Housing Act includes several reforms aimed at preserving affordable housing and strengthening USDA’s rural housing programs.

Rural Housing Service Reform Act (Sec. 502): The bill modernizes several USDA Rural Housing Service programs that support affordable rental housing and homeownership, strengthening financing tools relied upon by CDFIs and other rural lenders. Among its most significant reforms, the legislation decouples rental assistance from maturing Section 515 mortgages and expands preservation authorities for affordable multifamily housing, helping preserve affordable homes for hundreds of thousands of rural families while providing greater long-term stability for USDA-financed properties.

Improving Long-Term Disaster Recovery

CDFIs often serve as financial first responders after disasters, providing flexible capital to help communities rebuild homes, support small businesses, and restore local economies. The bill strengthens the federal programs that support these long-term recovery efforts.

Reforming Disaster Recovery Act (Sec. 504): The bill authorizes HUD’s Community Development Block Grant–Disaster Recovery (CDBG-DR) program for three years and establishes an Office of Disaster Management and Resiliency. Because CDBG-DR previously lacked standing authorization, communities often faced delays while new rules were developed after each disaster. The legislation creates a more predictable framework for rebuilding housing, restoring infrastructure, and supporting long-term recovery.

What’s Next

When enacted, the focus will shift to implementation. Federal agencies will begin developing guidance and implementing the bill’s new authorities, and OFN will continue engaging with policymakers to help ensure these changes work effectively for CDFIs and the communities they serve.

While the 21st Century ROAD to Housing Act advances many long-standing OFN priorities, additional opportunities remain to strengthen the community development finance ecosystem. We will continue advocating for provisions in the bipartisan Access to Fair Financing for Opportunity and Resilient Development (AFFORD) Act that were not included in the final housing package, including improvements to the CDFI Bond Guarantee Program to expand access to long-term capital, the Scaling Community Lenders Act to strengthen secondary market liquidity for CDFIs, the CDFI Fund Transparency Act to enhance congressional oversight of the CDFI Fund, and permanent authorization of the USDA Native CDFI Relending Program. As Congress begins work on the FY27 National Defense Authorization Act (NDAA), we will continue working with congressional champions to advance these provisions in hopes of securing their inclusion in the final NDAA.

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