Key Points:
- The ROAD to Housing Act passed the Senate 77-20 as part of the FY2026 National Defense Authorization Act, consolidating 27 previously introduced bills into comprehensive affordable housing reform.
- The Act addresses critical barriers to affordable housing development, including lifting the RAD program cap, streamlining NEPA reviews for small and infill developments, and reforming zoning frameworks.
- House approval remains uncertain as Speaker Mike Johnson has tied votes to resolution of the government shutdown, creating timeline uncertainty on the timing.
If enacted, The ROAD to Housing Act of 2025, which passed the Senate 77-20 on Oct. 9, 2025, as part of the $924.7 billion National Defense Authorization Act for fiscal year 2026, would make long-awaited reforms to affordable housing.
This isn't a single proposal — it's a wish list of 27 bills, with 23 enjoying bipartisan support. The Act targets systemic bottlenecks that have constrained affordable housing for years: antiquated zoning rules, bureaucratic delays, insufficient capital investment, and rigid program caps. If it becomes law, it could reshape how housing authorities, developers, lenders and local governments approach affordable housing development.
But there's a catch. The bill needs House approval, and Speaker Mike Johnson has vowed no votes until the Senate agrees on a spending bill to reopen the government.
What the Act Does
The ROAD to Housing Act addresses affordable housing from multiple angles. Here are the provisions that matter most:
- Rental Assistance Demonstration (RAD) Program (Sec. 201). The Act lifts the cap on RAD conversions and codifies tenant protections. While RAD conversion projects haven’t hit the current cap, it looms as a potential barrier. This will remove that future roadblock and could allow more public housing authorities to convert properties to the more stable Section 8 platform — a shift that benefits states, localities, housing authorities and tenants. Removing the rigid cap opens the door for conversions that are financially viable but could be blocked by arbitrary limits.
- Opportunity Zones (Sec. 202). HUD will now give preference in competitive grants to applicants located in or serving designated Opportunity Zones. This incentivizes housing preservation and new affordable housing construction in areas already targeted for economic development.
- Zoning and Land-Use Reform (Sec. 203). The Housing Supply Frameworks Act requires HUD to develop frameworks that help communities identify and overcome zoning and land-use barriers. Outdated local regulations have long stymied affordable housing projects. This provision gives communities federal support to modernize their approaches.
- Increased Investment Capacity (Sec. 205). The Community Investment and Prosperity Act raises the Public Welfare Investment cap from 15% to 20% for banks regulated by the Office of the Comptroller of the Currency and the Federal Reserve. That means more capital flowing into affordable housing projects.
- Streamlined Environmental Review (Secs. 207-208). The BUILD Housing Act and companion provisions right-size NEPA review requirements for small and infill developments. By empowering state and local governments to conduct streamlined reviews, these sections remove a major procedural obstacle that has delayed or killed affordable housing projects.
- Adaptive Reuse Pilot Program (Sec. 212). The RESIDE Act creates a competitive pilot program within HOME Investment Partnerships to convert vacant and abandoned buildings into affordable housing — but only if annual appropriations exceed $1.35 billion. Many jurisdictions are already pursuing this strategy; federal support would accelerate those efforts.
- Inspection Reform (Sec. 405). The Choice in Affordable Housing Act tackles HUD inspection delays by allowing automatic satisfaction of voucher inspection requirements for units financed through other federal housing programs, provided they were inspected within the past year. This eliminates redundant inspections that slow down housing placements.
What It Could Mean for the Market
If enacted, the ROAD to Housing Act would have significant effects across the affordable housing sector.
Housing authorities could move forward with future RAD conversions previously in danger of being blocked by program caps. Developers will face fewer environmental review hurdles on small projects and infill developments, shortening timelines and reducing costs. Banks and lenders would gain expanded capacity to invest in projects, increasing available capital for affordable housing. Local governments would receive federal support to reform outdated zoning rules that have constrained housing supply.
What Happens Next
The Senate has spoken. The House has not. Speaker Johnson's position ties the bill's fate to broader fiscal negotiations, and there's no scheduled vote.
For now, stakeholders should track the bill's progress closely. Housing authorities should prepare for potential RAD conversions. Developers should identify projects that could benefit from streamlined reviews or Opportunity Zone preferences. Lenders should evaluate how expanded investment caps might affect their affordable housing portfolios.
Bottom Line
The ROAD to Housing Act tackles long-standing barriers to affordable housing development through regulatory reform, increased investment capacity, and streamlined processes. It passed the Senate with strong bipartisan support, but its path to enactment remains unclear.
Anyone involved in affordable housing development should monitor this legislation closely and prepare for implementation while managing the risk that it may not pass in its current form.
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