Federal Housing Law Introduces New Incentives for Local Housing Development
The 21st Century ROAD to Housing Act, enacted in July, is being hailed as a significant bipartisan effort to reform federal housing policy. This new law introduces several provisions aimed at boosting local housing development. Key elements include restricting institutional investors from purchasing homes, easing regulations on manufactured housing, and expanding assistance for veterans. Notably, the law grants local governments more flexibility in using federal grants, introducing financial incentives and penalties tied to housing production. This approach is designed to encourage cities to increase housing supply, as states and cities primarily control housing choices through zoning and land use regulations. The law also allows federal block-grant funding to be used for new affordable housing construction, a shift from previous restrictions. The measure passed through a divided Congress partly because it does not require substantial new funding, focusing instead on making existing federal housing dollars...