Senate Banking, Housing and Urban Affairs Committee Unanimously Passes “ROAD to Housing Act” Bill – Rural Housing Provisions Included
On July 29, 2025, the Senate Banking, Housing and Urban Affairs Committee, by a unanimous vote of 24-0, passed legislation titled the Renewing Opportunity in the American Dream to Housing Act (hereafter referred to as its short title, the “ROAD to Housing Act”). This was a historic event, in that it had been 17 years since the Committee had voted to report to the Senate a massive housing bill. The bill has over 40 provisions that either amend the existing Housing Act of 1949 or add new sections to the Act. In past sessions of Congress, the House of Representatives passed several housing bills, with few being considered by the Senate. The bipartisan nature of the legislation indicates how much the issue of housing and affordability has become a major topic of discussion. The Committee issued a press release, entitled “Cross-Industry Stakeholders, Local Elected Officials Applaud Landmark Bipartisan Housing Package Ahead of Committee Markup,” which includes a quote from Colleen Fisher, CARH’s Executive Director, as well as many other industry stakeholders. A section-by-section analysis of the bill can be found here.
Key Provisions in the ROAD to Housing Act Bill
CARH members will be pleased to know that as part of this historic bill, the Committee has included legislative initiatives long advocated by CARH. Senators Mike Rounds (R-SD) and Tina Smith’s (D-MN) S.1260, Rural Housing Service Reform Act of 2025, would permanently authorize the decoupling of the Section 521 Rental Assistance (RA) program from the Section 515 program when the mortgage on a property matures. S. 1260, now part of the ROAD to Housing Act bill, would expand the current demonstration decoupling program or Stand Alone Rental Assistance (SARA) that was authorized through the annual Appropriations process. The provisions in the bill provide more detail in how Congress envisions the program to operate in the long term, i.e., RD will inform borrowers that their mortgages would mature four years prior to doing so, with the idea that borrowers would then have a plan in place that the agency could approve so that a SARA contract would be extended for property, thus preserving it as affordable housing. In addition, the Multifamily Preservation and Revitalization (MPR) program, which has operated as a demonstration program for 10 years, would also be permanently authorized. Finally, an item that has been high on CARH’s agenda is the issue of the number of inspections required on a property when there is multiple financing involved. Two provisions in the bill would streamline those inspections and codify that there should be a Memorandum of Understanding (MOU) developed among the agencies so that only one inspection would be required, including those requiring environmental reviews. CARH worked closely with Senators Jerry Moran (R-KS) and Jeanne Shaheen (D-NH) on this MOU codification, and while they are not on the Senate Banking Committee, these members were instrumental in having the ROAD to Housing Act include this language.
Other provisions in the Road to Housing Act include the following:
Directs HUD to develop best practice frameworks for zoning and land-use policies, so that communities will be better equipped to identify and dismantle local obstacles to housing production.
Streamlines the NEPA review process for small and infill housing projects, to help speed up approvals without compromising environmental protections, ensuring that urgently needed homes can be built more quickly.
Provides flexible funding for jurisdictions that are actively building new housing, allowing them to reinvest in infrastructure, water, sewer, and local development.
Empowers communities to create pre-approved housing design templates, also known as pattern books, to expedite permitting and construction.
Rewards pro-housing zoning near transit routes with higher ratings in the federal grant evaluation process, increasing access to both low-cost housing and cheaper commutes.
Facilitates the conversion of vacant and abandoned buildings into new housing, revitalizing abandoned areas.
Modernizes FHA lending standards to support manufactured homes.
Permanently authorizes the Community Development Block Grant–Disaster Recovery program and establishes the Office of Disaster Management and Resiliency within HUD to administer it.
The HOME Investment Partnerships Program (HOME) was last reauthorized more than two decades ago. The bill would reauthorize HOME and make several needed improvements.
Next Steps in the Legislative Process
The bill will now go to the full Senate for consideration when members return after their August recess. It is important that all CARH members communicate support for Senate passage of the bill. Even if your mortgage is not maturing in the next couple of years, it’s important to remember that preservation takes long-term planning. Ensuring these programs are fully authorized, well-funded, and structured in a way that works is critical, so they will be there when you need them – whether that’s now or several years down the road. To contact your Senators, click here.
On the House of Representatives side, it is rumored that the House Financial Services Committee has begun drafting its version of the ROAD to Housing Act bill for that Committee’s consideration in September. That bill may or may not mirror the Senate Banking Committee’s bill. However, the bipartisan nature and vote by the Senate Banking Committee is important and will no doubt help as the House Financial Services Committee drafts its housing bill. In addition, the fact that both the House and Senate Committees responsible for authorizing housing programs are actively engaged in working on a major housing bill is a very positive sign that could lead to Presidential action before the end of the 119th Congress.
Please contact the CARH National Office at carh@carh.org or 703-837-9001 should you have questions or concerns.
