The 21st Century ROAD to Housing Act, a combined effort from the Senate’s ROAD to Housing Act and the House’s Housing for the 21st Century Act, is encountering obstacles as it progresses toward passage. The bill seeks to reduce government regulations on housing and encourage state and local governments to relax land-use restrictions.

Bill's Path to Passage is Complicated

While the bill combines priorities from both chambers, it was primarily crafted in the Senate. This has created a complex path to approval in the House, with key differences needing resolution. Discussions are ongoing to determine how the two chambers will reconcile the legislation.

CBDC Ban Sparks Debate

The 21st Century ROAD to Housing Act includes a temporary ban on central bank digital currencies (CBDCs), lasting through 2030. A CBDC is a digital form of currency issued directly by a central bank, like the Federal Reserve in the United States.

Proponents believe a CBDC could prevent bank bailouts and improve efficiency, while opponents, largely Republicans, express concerns about potential government overreach and Fourth Amendment rights. Some conservatives are pushing for a permanent ban, rather than the current sunset provision.

Build-to-Rent Provision Draws Criticism

A provision added to the bill bans institutional investors from purchasing single-family homes, responding to concerns raised by President Donald Trump. The legislation also requires investors in build-to-rent homes to sell those properties within seven years.

Housing experts have voiced concerns that this requirement could decrease the housing supply. The National Association of Home Builders initially threatened to withdraw its support, and a group of experts warned it would discourage investment and lead to fewer homes being built.

Senate Banking Committee Chairman Tim Scott defended the seven-year provision, highlighting caveats such as exemptions if properties cannot be sold within 60 days of being listed and exclusions for real estate investment trusts. He also noted the Treasury Department would have discretion to adjust the provision if it hinders home sales or homeownership.

Community Banking Concerns

Notably absent from the revised bill is a section from the original House legislation focused on strengthening the role of community banks in housing. House Finance Committee Chairman French Hill was a strong advocate for this section, which aimed to streamline the creation of new community banks and credit unions.

Senator Scott acknowledged the importance of community banks in the mortgage business and indicated plans for a separate financial institutions package to address these issues.

Competing Priorities and Next Steps

Congress is currently addressing other pressing matters, including funding for the Department of Homeland Security and voter ID legislation, which have diverted attention from the housing bill. The Senate, having passed the legislation with overwhelming support, hopes the House will approve it as is.

A Senate GOP aide emphasized the importance of addressing housing affordability and highlighted that a previous version of the spending bill had already gained support from over 300 House members.