January - May 2026 News Roundup
It has been a busy five months in affordable and rural housing. From landmark federal legislation to state-level wins right here in Florida, 2026 has already brought a wave of developments that matter to our members. Here is a look back at the key stories from January through May.
1) The 21st Century ROAD to Housing Act Passes the Senate
In one of the most significant federal housing developments in nearly three decades, the U.S. Senate voted 89–10 in March to pass the 21st Century ROAD to Housing Act. A sweeping bipartisan bill aimed at expanding housing supply, reducing costs, and modernizing federal housing programs. The House had passed its own version, H.R. 6644, in February, and the two chambers are now working toward a unified package. Florida CARH covered both the House passage and the Senate vote in detail. The path forward in the House remains uncertain, but the momentum is real.
Read our coverage: Bipartisan Housing Package Passes U.S. HouseRead our coverage: Senate Overwhelmingly Passes Landmark Housing Bill
2) HUD Income Limits: Delayed, Then Released
In February, HUD announced that FY 2026 income limits, used to determine tenant eligibility across LIHTC, Section 8, HOME, and other federal programs, would be delayed one month, from April 1 to May 1, due to a Census Bureau data delay caused by the government shutdown. The limits were officially released on May 1. Compliance teams should note that any tenant certification fully signed prior to May 1 may remain as-is; certifications dated May 1 or later should reflect the updated limits.
Read our coverage: HUD Delays Fiscal Year 2026 Income Limits Until May 1
3) Florida Lawmakers Approve an Expansion of the Live Local Act
In April, the Florida Legislature approved an expanded version of the Live Local Act, broadening the types of land eligible for affordable housing development to include property owned by religious institutions, school boards, and government entities. Projects that reserve at least 40 percent of residential units for affordable housing continue to benefit from streamlined zoning and approval processes. For Florida CARH members, this expansion represents continued momentum at the state level to address rising housing costs and supply constraints.
Read our coverage: Florida Lawmakers Approve Expansion of the Live Local Act
4) USDA Launches the Rural Housing Modernization Initiative
In March, USDA announced the Rural Housing Modernization Initiative, an effort to upgrade how it delivers affordable single-family housing through its Rural Development Mission Area. The initiative strengthens both the Single Family Housing Guaranteed Loan Program and the Single Family Housing Direct Loan Program by improving service delivery and reducing unnecessary processing delays, without changing eligibility standards, funding levels, or program safeguards.
Read our coverage: USDA Launches Rural Housing Modernization Initiative
5) Administration Releases FY 2027 Proposed Budget
On April 3, the Trump Administration released its proposed Fiscal Year 2027 budget. For rural housing, the picture is mixed. Section 521 Rental Assistance would increase by $80 million to $1.795 billion, and the Section 538 Guaranteed Rural Rental Housing Program would see a $100 million increase. However, the Section 542 Rural Housing Voucher program, critical for residents displaced by foreclosures or prepayments, would be zeroed out. On the HUD side, both the HOME and Community Development Block Grant programs would again face elimination, though Congress rejected those cuts in FY 2026 and is expected to push back again. CARH is urging members to contact their representatives in support of full program funding.
Read our coverage: Administration's Fiscal Year 2027 Proposed Budget Released
6) HUD Updates Environmental Review Requirements for Multifamily Development
In May, HUD announced targeted updates to its environmental review requirements for FHA-insured multifamily housing. The changes remove outdated and duplicative provisions, including standalone railroad vibration assessments, and clarify standards for noise-sensitive outdoor spaces and high-voltage power lines. For Florida developers navigating tight margins and complex timelines, these updates are a welcome step toward faster and less costly project delivery.
7) HUD and USDA Rescind 2024 Energy Code Requirement
Also in April, HUD and USDA jointly rescinded the 2024 Energy Code requirement that had been applied to new construction in federally assisted housing programs. The agencies indicated the rescission is intended to reduce housing production costs. Florida CARH covered this development in detail, and members should review the implications for projects currently in their pipelines.
Read our coverage: HUD and USDA Rescind 2024 Energy Code Requirement for New Housing
We will continue to track these and other developments throughout the year. For questions or member resources, reach us at info@flcarh.com.