House Passes Bills to Boost Housing Affordability—What’s Included

House lawmakers are poised to pass a bipartisan package of bills designed to tackle the nation’s housing affordability crisis. The legislation focuses on incentivizing builders and local governments to increase housing construction by reducing regulatory hurdles. This follows a similar bill passed by the Senate last year, and enjoys support from President Donald Trump, signaling a strong likelihood of becoming law this year.

Rep. Mike Flood, R-Neb., emphasized the personal importance of homeownership, stating that access to housing is a central goal for many Americans. The proposed legislation aims to address this by streamlining the construction process and encouraging innovative building methods.

The bills include several key provisions intended to boost housing supply. These include cutting both housing and environmental regulations related to home construction. Local communities could receive grants to simplify the building process through pre-approved housing designs and streamlined permitting. The Department of Housing and Urban Development (HUD) would also develop best practices for zoning guidelines.

A significant focus is placed on expanding the use of manufactured and modular housing. Updating definitions to encourage factory-built homes, which can be constructed much faster than traditional builds, is a core component of the plan.

The legislation also provides a boost to community banks, allowing them to take more custodial and reciprocal deposits, potentially increasing mortgage availability for prospective homeowners. Changes are also proposed to ease the process of starting new banks and to modify how the FDIC evaluates banking mergers.

While both the House and Senate bills share the common goal of increasing housing affordability, there are some key differences. The Senate bill includes more programs and focuses less on provisions related to community banks. The Senate package was initially passed as part of a larger defense measure but garnered significant bipartisan support as a standalone bill, with backing from Senators Tim Scott, R-S.C., and Elizabeth Warren, D-Mass.

The Senate bill advanced unanimously out of committee, with all 24 senators supporting it. The House panel advanced its bill with a vote of 50 to 1 in December, demonstrating broad bipartisan consensus.

Despite the strong bipartisan support, concerns remain regarding adequate funding for housing programs. Rep. Maxine Waters, D-Calif., cautioned that policy reforms alone will be insufficient without sufficient financial backing.

House Financial Services Chair French Hill, R-Ark., expressed a shared goal with Senator Scott to get a housing bill signed into law by President Trump. He indicated a willingness to collaborate with the Senate to find common ground and reach a consensus.

While a formal ban on large investors purchasing homes – a proposal championed by President Trump – is not currently included in the bill, lawmakers have indicated that it could be considered if consensus emerges in both the House and Senate.

What is the main goal of this legislation?

The primary goal is to increase the supply of affordable housing by reducing regulatory barriers and incentivizing construction.

How will this bill help community banks?

The bill proposes changes that would allow community banks to offer more mortgages by increasing their deposit capacity and easing regulations related to starting new banks and mergers.

What is the difference between the House and Senate bills?

The Senate bill includes more programs and less focus on community banks compared to the House bill.

Will this bill address large investors buying homes?

Not currently, but lawmakers are open to considering it if there is consensus in both chambers of Congress.

Pro Tip: Stay informed about local zoning regulations and incentives in your area. These can significantly impact the cost and feasibility of building or buying a home.