dailyloe.com – A major US housing bill passed the Senate on March 12, aiming to tackle the nation’s severe affordability and supply crisis. The 21st Century ROAD to Housing Act seeks to lower costs and speed up construction of single-family homes. It received rare bipartisan support with an 89-10 vote.
The comprehensive legislation now returns to the House of Representatives for final approval. Its path forward is complicated by a contentious debate over institutional investors. Both Senator Elizabeth Warren and former President Donald Trump have called for banning large investors from buying homes.
This proposed ban targets the relatively small ‘build-to-rent’ market segment. The bill’s more significant impact may be its support for factory-built manufactured homes. These provisions could substantially increase the overall housing supply.
The ROAD Act includes over 40 different financing, permitting, and zoning reforms. It specifically eases regulations on where manufactured homes can be located. The bill also increases federal loan limits for potential buyers of these homes.
A key reform allows manufactured homes to be assembled without a permanent chassis. This change aims to make factory-built housing more viable and attractive. The focus is on a scalable solution to the supply shortage.
The House passed a similar, though pared-down, version of this bill in February. The Senate version adopted many of the House’s original provisions. Final passage now depends on resolving the investor ban dispute.
Housing remains one of the stickiest issues in America’s affordability discussion. The ROAD Act represents a rare moment of political agreement on the topic. Its success hinges on navigating the final legislative hurdle.[]
Source: CNBC
