The Senate on Monday passed the 21st Century ROAD to Housing Act, an 85-5 bipartisan housing bill that aims to increase housing supply and lower housing costs.
The measure contains almost 60 individual provisions, and includes limits on institutional investors purchasing single-family homes, a ban on the Federal Reserve issuing a digital currency, and community banking deregulation initiatives.
The package moved after an agreement among the four lawmakers leading the effort — Senate Banking Chair Tim Scott and ranking member Elizabeth Warren, and House Financial Services Chair French Hill and ranking member Maxine Waters — and the White House announced its support. "Now it is time to move forward, get this bill across the finish line, and deliver real relief for the American people," Sen. Tim Scott of South Carolina said.
Sen. Elizabeth Warren of Massachusetts outlined some of the bill's housing provisions, saying, "There is so much in this bill. Each piece, directing us toward increasing the supply of housing, bringing down the cost, and making housing something that is not just a Wall Street investment, but is actually there for American families."
The legislation now moves to the House, which could take up the bill for final passage as soon as Tuesday; the House is returning from recess this week and is expected to move quickly.
An earlier version of the bill would have required investors who own 350 units or more to sell any new units they build beyond that cap within seven years; the final version maintains the 350-unit cap but removes the seven-year sell-by provision. The package would also tie Community Development Block Grant funding to increasing housing supply and create a pilot program to award grants to redevelop vacant units into housing.
"With America facing a shortage of over 4.7 million homes, expanding supply remains the most effective and sustainable way to improve affordability, support workforce mobility, and strengthen local economies," Neil Bradley, executive vice president, chief policy officer and head of strategic advocacy at the U.S. Chamber of Commerce, said in a statement. Rep. French Hill, chairman of the House Financial Services Committee, said, "This bill is a meaningful step toward increasing housing supply, improving affordability, and helping more Americans achieve homeownership." Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, said, "No compromise is perfect, this legislation reflects meaningful progress."
Sens. Rick Scott, Ron Johnson, Tommy Tuberville, Rand Paul and Mike Lee voted no on the measure.