Senate Passes 21st Century ROAD to Housing Act!
On June 22, the Senate passed the 21st Century ROAD to Housing Act by an overwhelming vote of 85-5. The bill passed following previous procedural votes last week showing similarly strong bipartisan support: 84-8 on June 18 and 87-8 on June 16. Earlier on June 16, the Senate unveiled a bipartisan, bicameral compromise version of the legislation, which the House and Senate have been negotiating for nearly a year. ACTION’s top priority in the bill, increasing the Public Welfare Investment (PWI) cap from 15 percent of banks’ capital and surplus to 20 percent, remains in this legislation. This will allow banks that are up against the cap to increase their investments in the Housing Credit. This provision has been included in every version of the housing package.
This housing package is arguably the most significant standalone housing legislation that Congress has worked on in a generation. Other key provisions in it aim to strengthen HUD and USDA programs often used in conjunction with the Housing Credit. Highlights include significant reforms to the HOME program, which helps finance around 15 to 20 percent of Housing Credit units annually, and reforms to the Department of Agriculture’s Rural Housing Service, which will better enable the preservation of affordable homes in rural communities.
The compromise 21st Century ROAD to Housing Act also leaves untouched the improved provision that will reduce the participation of large institutional investors in the housing market. Last month, the House improved the original version of this provision, which had caused concern for many ACTION members, who believed that it would have inadvertently prevented the production and rehabilitation of single-family rental housing financed with the Housing Credit.
The 21st Century ROAD to Housing Act now heads to the House for final passage. ACTION strongly urges the House to swiftly pass this bill and send it to the President’s desk for his signature. ACTION is deeply grateful to the Senate and House champions who have worked tirelessly to advance this legislation, especially Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA); House Financial Services Committee Chairman French Hill (R-AR-02) and Ranking Member Maxine Waters (D-CA-43); House Financial Services Housing Subcommittee Chairman Mike Flood (R-NE-01) and Ranking Member Emanuel Cleaver (D-MO-05); and all their staff members.
