Senate expected to vote on housing bill after talks on controversial provisions
Senate Majority Leader John Thune is planning to bring the landmark 21st Century ROAD to Housing Act back to the Senate floor after negotiations resulted in an agreement. The legislation aims to boost housing supply and make housing more affordable by addressing high prices. The bill has been revised with input from both the House and Senate,including provisions supporting local housing development and initiatives to assist communities affected by disasters. A key controversial aspect remains a ban on large investors purchasing single-family homes, a measure supported by some populist Democrats but opposed by free-market advocates. The bill also includes other provisions such as incentives for localities to permit more housing construction and support for manufactured housing communities. The White House has indicated support, and passage of the bill coudl provide a triumphant platform for lawmakers in the midterm elections, given widespread dissatisfaction with housing costs. If approved by the Senate, the bill will go back to the House for final approval before reaching President Biden’s desk.
Senate Majority Leader John Thune (R-SD) is expected to bring landmark housing legislation back to the Senate floor this week after negotiators reached an agreement, signaling a win for the backers of the bill, who say it will increase housing supply and address high prices.
The 21st Century ROAD to Housing Act will be voted on this week, according to Senate aides. The final version of the legislation comes after negotiations between House Speaker Mike Johnson (R-LA) and Thune and some further revisions after the bill previously passed both the House and the Senate.
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Notably, this latest version doesn’t change the most controversial provision, which is a ban on large investors purchasing single-family homes. That provision, which was inserted into the bill after President Donald Trump demanded it, has strong support from some populist Democrats but faces skepticism from free marketers. The House version of the bill significantly eased the ban by removing a provision that would have required investors in build-to-rent homes to sell those houses within seven years. That edit appears to have survived in the latest Senate version of the bill.
But other sections have been added back to the legislation following this latest round of leadership-level talks.
One such provision is the measure authored by Sens. John Kennedy (R-LA) and Senate banking committee ranking member Elizabeth Warren (D-MA) that would steer federal grants to localities that permit greater housing construction and away from areas that fail to build.
Other additions include the Preservation and Reinvestment Initiative for Community Enhancement Act by Sen. Catherine Cortez-Masto (D-NV), which is designed to support manufactured housing communities, the Reforming Disaster Recovery Act, which accelerates assistance to communities hit by disasters, among others.
Notably, one point of likely negotiation on the Senate side was a number of community banking provisions that were a priority of House Financial Services Committee Chairman French Hill (R-AR). Nine of the 11 community bank provisions were left in this latest, presumably final, version of the legislation, according to the aides.
“It is past time for a true bipartisan, bicameral compromise on the housing bill,” a Senate GOP aide told the Washington Examiner. “Senate and House leadership have made great progress on a package that incorporates key Senate, House, and White House priorities.”
The White House has previously signaled support for iterations of the bipartisan legislation. The Washington Examiner asked the White House Monday morning for comment on this latest development.
Passing the legislation would give lawmakers a talking point in the midterm elections, given voters’ discontent with housing prices. Republicans, in particular, are desperate to address constituents’ unhappiness with the cost of living.
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The rising cost of housing has played a major role in the broader inflation that has sent consumer sentiment to record lows. Higher costs have also driven up disapproval of Trump’s handling of the economy 16 months into his term.
If the Senate passes this latest version, as is expected, it would then return to the House for final sign-off before heading to the president’s desk.
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