Written by: Internal Analysis & Opinion Writers
In a move that could reshape federal housing policy, leaders of the U.S. House Financial Services Committee recently introduced a comprehensive bipartisan legislative package aimed at alleviating America’s persistent affordable housing crisis. The proposal — formally titled the *Housing for the 21st Century Act* — was revealed ahead of a scheduled committee markup, setting the stage for debate as lawmakers in both parties look for solutions to the nation’s deepening supply and affordability challenges.
The announcement marked a significant rare moment of bipartisan cooperation on housing policy at a time when Congress has otherwise struggled to find common ground on major economic issues. Committee Chairman French Hill of Arkansas and Ranking Member Maxine Waters of California jointly presented the bill to industry leaders and stakeholders, emphasizing its goal of modernizing outdated federal housing programs and removing barriers to new construction.
Hill stressed that the bill reflects input from a broad coalition of voices — not only lawmakers but mortgage lenders, housing advocates, and community development groups — all signaling that fundamental changes are needed. “We see this as a necessary step forward to respond to the growing gap between housing supply and demand,” Hill said. Mortgage Bankers Association President and CEO Bob Broeksmit echoed that sentiment, describing housing affordability as “a bipartisan issue that demands federal, state and local solutions.”
The urgency behind the proposal is underscored by recent data showing that the median U.S. household income is sufficient to afford a home purchase in far fewer metropolitan areas than just a few years ago. Supply shortages, elevated construction costs, and higher interest rates have pushed home prices beyond the reach of many would-be buyers. Against that backdrop, the *Housing for the 21st Century Act* outlines a broad strategy to expand housing availability, particularly in markets where affordability has deteriorated most sharply.
Central provisions of the legislation focus on updating Federal Housing Administration loan limits, especially for multifamily housing projects, in an effort to align federal financing tools with today’s construction costs. The bill also proposes streamlining federal housing programs by consolidating overlapping initiatives and reducing regulatory complexity that industry participants have long cited as an impediment to development. Rural communities and manufactured housing markets, which often face unique financing challenges, receive specific attention through provisions designed to expand access to capital in those areas.
National Housing Conference President and CEO David M. Dworkin praised the bill’s comprehensive scope, arguing that sustained production is essential to solving the housing shortage. “The housing shortage did not happen overnight,” Dworkin said. “We got into this crisis one unit at a time, and we will get out of it the same way.” His remarks reflect a growing consensus among housing advocates that incremental, long-term policy reforms are required to restore balance to the market.
Beyond increasing supply, the legislation also places emphasis on transparency, consumer protections, and accountability within federal housing programs. Supporters argue that clearer guidance and stronger oversight will help ensure that expanded production does not come at the expense of borrower protections or market integrity. By addressing both access to capital and regulatory clarity, proponents say the bill aims to foster greater confidence among lenders, developers, and consumers alike.
The House proposal is also closely aligned with parallel efforts in the Senate to address housing affordability. Industry groups have noted that many elements of the House bill mirror provisions previously advanced in the Senate’s *ROAD to Housing Act*, a bipartisan package that gained traction earlier this year before being excluded from broader legislation. Broeksmit said industry stakeholders continue to support reconciliation between the House and Senate approaches to move comprehensive housing reform forward.
Although the Senate measure was removed from a recent must-pass defense bill, its core objectives — reducing red tape, encouraging private investment, and expanding housing supply — are reflected in the House’s new proposal. Advocates argue that the renewed focus in the House keeps momentum alive for a legislative solution to the housing shortage, even as negotiations continue between chambers.
Some policy analysts believe that combining supply expansion with targeted financing reforms could meaningfully alter the housing market’s current trajectory. By improving access to credit and modernizing federal loan programs, the legislation’s authors say they hope to support increased housing starts, particularly in regions where zoning constraints, financing gaps, and regulatory hurdles have slowed development.
Still, the proposal faces challenges as it advances through the committee process and potentially toward a floor vote. Critics of large federal housing initiatives often raise concerns about program costs, implementation risks, and the potential for unintended market distortions. Others caution that changes to longstanding programs must be carefully managed to avoid disrupting existing lending and development pipelines. Supporters counter that failing to act would only deepen affordability challenges and widen disparities in housing access.
Broeksmit underscored the industry’s sense of urgency, saying, “We will work with House and Senate leaders on both sides of the aisle to reconcile differences and build momentum toward pushing meaningful legislation across the finish line as soon as possible.” That urgency is widely shared across the housing sector, which continues to grapple with rising costs, limited inventory, and shifting demographic pressures.
Trade groups representing builders, lenders, and housing advocates have rallied behind the bill as an opportunity to address years of underbuilding and regulatory inefficiencies. Developers, in particular, have welcomed the proposed increases to multifamily loan limits, arguing that updated financing thresholds are critical to making new rental projects economically viable, especially those serving low- and moderate-income households.
Manufactured housing advocates have also expressed support for the legislation’s focus on rural and non-traditional housing options. Expanded financing access for factory-built homes could provide a meaningful affordability solution in areas where site-built construction remains cost-prohibitive or slow to deliver new units.
As the committee prepares to mark up the bill, housing industry stakeholders will be watching closely. Whether the *Housing for the 21st Century Act* ultimately advances in its current form or is reshaped through negotiations, it represents one of the most significant congressional efforts in recent years to confront the nation’s housing supply and affordability challenges head-on.
