Senate Banking, Housing and Urban Affairs Committee Unanimously Approves Bipartisan Housing Package

Mary Scott Balys, SVP, Public Policy, OFN

August 1, 2025 –

For the first time in more than a decade, the Senate Banking Committee has come together to pass a bipartisan housing bill.

Read time: 4 minutes

On Tuesday, July 29, the Senate Banking, Housing and Urban Affairs Committee held a markup of the ROAD to Housing Act. Although the bill contains several positive provisions to increase housing supply, many CDFI-specific priorities were not included in the bill. Banking Committee Chairman Tim Scott (R-SC) sought to limit the scope of the bill to maintain bipartisan support and housing finance provisions, thereby leaving provisions directed toward CDFIs out of the final package.

However, the bill includes the following provisions that are of interest to CDFIs:

Increasing Housing in Opportunity Zones

Enables the Housing and Urban Development (HUD) Secretary to give added weight to applicants for competitive HUD grants located in, or primarily serving, designated Opportunity Zones to support housing preservation and construction.

The Build Now Act

Creates a pilot program to incentivize housing development of all kinds in Community Development Block Grant participating jurisdictions, excluding states.

The Build More Housing Near Transit Act

Amends the Capital Investment Grants program in the Federal Transit Administration (FTA) to provide an optional increased rating in the FTA’s evaluation process for projects in areas that establish pro-housing policy near public transportation routes.

Creating Incentives for Small-Dollar Loan Originators

Requires the Consumer Financial Protection Bureau (CFPB) to issue a report to Congress studying the effect of various factors of loan originator compensation on the availability of small-dollar mortgage loans and to assess the barriers they pose to the availability of small-dollar mortgages to consumers. It also gives the CFPB the flexibility to amend rules to encourage small-dollar loan origination.

Small-Dollar Mortgage Points and Fees

Requires CFPB and the Federal Housing Finance Agency to evaluate the impact of existing regulations that limit the points and fees that lenders can charge on qualified mortgage loans, which vary by loan limit. Based on this evaluation, the provision directs the CFPB to make any necessary regulatory changes to points and fees to encourage additional lending for small-dollar mortgages.

The HOME Investment Partnerships Reauthorization and Improvement Act

Reauthorizes the HOME Investment Partnerships Program and makes critical updates to improve program administration and facilitates the construction of more affordable housing.

The Rural Housing Service Reform Act

Enacts reforms to the existing Rural Housing Service, including decoupling rental assistance from maturing mortgages to preserve affordable housing in rural areas.

The Community Investment and Prosperity Act

Under current law, banks cannot generally make qualifying equity investments exceeding 5% of their capital and surplus, unless regulators approve up to 15%. This section would raise the maximum to 20%, expanding opportunities for banks to finance housing, small business development, and financial literacy programs in low-income communities.

The bill passed the committee unanimously, though many Senators used their time during the hearing to highlight other issues that they would like to see the committee pursue in the future. Senator Tina Smith (D-MN) highlighted her hope that the committee could work on other bipartisan priorities, including permanency for the USDA pilot program to make mortgage loans available in Native communities by partnering with local CDFIs. Now that the bill has passed the committee, the Senate and the House must pass it and the President must sign it before it can become law.

OFN will continue to work with the House and Senate to secure passage of this bill and on future opportunities to move CDFI-specific housing legislation forward.

Save The Date

Join us from October 20-23 in Washington, D.C. for the 41st annual OFN Conference!

Stay Connected

Subscribe to receive regular updates straight to your inbox and check out our blog for the latest coverage from OFN and the CDFI industry.

Follow us on social media.

Senate Banking, Housing and Urban Affairs Committee Unanimously Approves Bipartisan Housing Package

Save The Date

Opportunity Next: Where Capital Meets Impact — Register Now for OFN41!

Senate Banking, Housing and Urban Affairs Committee Unanimously Approves Bipartisan Housing Package

House-Proposed FY26 CDFI Fund Appropriation Higher than President’s Budget Request, Decrease from Current Funding Level