The House Financial Services Committee released their new version of the 21st Century ROAD to Housing Act.

The new version of the bill:

  • Increases the public welfare investment (PWI) cap from 15 to 20 percent, unchanged from prior versions;
    • It also adds a new provision requiring the Comptroller of the Currency and the Federal Reserve Board of Governors to submit a report to Congress on the use of PWIs.
  • Amends the Homes Are For People, Not Corporations Section (Section 901 in the Senate version, now Section 1001 in the House version)
    • Removes the seven-year disposition requirement from the Senate version;
  • Restores the Build America, Buy America (BABA) provisions from the earlier version of the House bill, requiring HUD to review the implementation of BABA requirements for HOME funds and issue updated guidance.
    • Note: This BABA language only applies to the HOME program and does not address the need for BABA reform in other HUD or USDA housing programs.
  • Streamlines NEPA reviews for small and infill housing projects (Sec. 207 – Unlocking Housing Supply Through Streamlined and Modernized Reviews Act);
  • Adds in community banking provisions that have been a priority for Chairman French Hill (R-AR); and
  • Drops provisions from the Senate bill that would have expanded the RAD and Moving to Work programs, and created a CDBG-DR permanent disaster recovery framework.

What’s Next: The House is expected to vote on the bill this afternoon without the SAVE America Act, despite President Trump demanding its inclusion on social media — a move that likely would have doomed the legislation. The SAVE America Act would impose new voter ID and proof-of-citizenship requirements for federal elections and bar transgender women from women’s sports.

The Bottom Line: If the new version passes, the bill still needs to pass the Senate where Senate Minority Leader Chuck Schumer (D-NY) told a group of housing industry professionals that he is open to supporting the House version if it emerges as the most viable path towards a final bill.