April 16, 2026 — Federal policymakers have been working to move legislation forward on housing affordability. On August 1, 2025, the U.S. Senate passed the Renewing Opportunity in the American Dream (ROAD) to Housing Act with a vote of 89–10. The U.S House of Representatives passed the Housing for the 21st Century Act by 390–9 on February 9, 2026.
In addition to congressional activity, the Trump Administration has recently taken executive action addressing housing market dynamics. On January 20, 2026, President Trump issued an executive order that directs federal agencies to evaluate and limit the role of large institutional investors in purchasing single-family homes that could otherwise be available to individual homebuyers. Subsequent executive actions in March 2026 further directed federal agencies to review policies affecting mortgage markets, housing finance, and regulatory barriers to homeownership, including actions related to federally backed lending programs and housing supply constraints.
21st Century ROAD to Housing Act
On March 12, 2026, the Senate passed a hybrid version of the House and Senate bills, called the 21st Century ROAD to Housing Act, with a vote of 89–10. This new legislation draws provisions from both bills, as well as from the executive order, creating a new proposal to address housing shortages and affordability challenges.
The 21st Century ROAD to Housing Act focuses on expanding and modernizing existing federal housing programs to help communities increase the supply of affordable housing. The legislation proposes reforms to the HOME Investment Partnerships Program, including raising income eligibility thresholds, allowing assistance to reach households earning up to the area’s median income to better address workforce housing shortages. It would also increase the program’s minimum grant allocation for localities from $500,000 to $750,000, ensuring smaller jurisdictions have sufficient funding to pursue housing projects. HOME funds will be authorized to fund housing-adjacent infrastructures in jurisdictions that do not receive direct Community Development Block Grant (CDBG) entitlement funding, which will help expand development in rural communities.
In addition, the 21st Century ROAD to Housing Act broadens the use of Community Development Block Grant (CDBG) funding by allowing jurisdictions to dedicate up to 20 percent of their funds for new housing construction, providing local governments with greater flexibility to address housing supply constraints and respond to rising demand. Section 501 of the bill permanently authorizes the CDBG–Disaster Recovery program and establishes the Office of Disaster Management and Resiliency within HUD to administer the program. This creates a framework for federal disaster funding, which will increase the speed of funding distribution and provide much-needed stability to communities recovering from natural disasters.
One of the most notable new provisions in the bill is a restriction on large institutional investors in the single-family housing market, which reflects the administration’s goals in housing. The legislation would prohibit institutional investors that own 350 or more single-family homes from purchasing additional properties.
Legislation Outlook
While the House and Senate bills share many common elements, differences between the two proposals will need to be reconciled through the legislative process. However, given the scope of the proposals and competing legislative priorities, the path to enactment remains uncertain, and any final housing legislation would likely reflect a negotiated combination of provisions from both chambers along with Administration priorities. Members of North Carolina’s congressional delegation will play a key role in shaping the final legislation, which could move quickly on Capitol Hill. U.S. Senator Thom Tillis (R-N.C.) serves on the Senate Committee on Banking, Housing, and Urban Affairs, while U.S. Representative Tim Moore (R-N.C.-14) serves on the House Financial Services Committee and the House Budget Committee, which have jurisdiction over housing policy.
As Congress continues to consider the 21st Century ROAD to Housing Act, the landscape for local housing policy is set for significant transformation. From increased HOME program minimums to the new 20% CDBG allocation for housing construction, these federal housing initiatives could influence housing policy and development opportunities for communities across our region. Centralina is here to help navigate these complexities and provide technical guidance and regional advocacy.
About the Author
Vivian Vesuna is a Legislative Intern for Strategics Consulting, Centralina’s federal government relations consulting firm. For more information, visit www.strategics.consulting.
