Dennis Shea, executive director of J. Ronald Terwilliger Center for Housing Policy at the Bipartisan Policy Center, in an interview with Builder’s Daynoted strong bipartisan support for the legislation.
“We look at housing as a nonpartisan, inclusive issue. High housing costs affect communities of all kinds across the country—affecting red states, affecting blue states. So it’s not just a red or blue issue; it’s an American issue. Housing is a bright, bifurcated place in an otherwise divided Washington,” Shea said.
Key provisions in the 21st century Housing Act
The HOME Reform Act, a key component of the 21st Century Housing Act, will initiate the first significant changes to the HOME program since its inception in 1990. You will reduce regulatory barriers for developers, especially by limiting duplicate updates to the environment in the HOME system.
The legislation would also exempt new categories of development under the HOME program from review under NEPA, including:
- New construction in landfills.
- New construction and renovation projects of 15 units or less.
- Purchase of real estate for affordable housing.
The bill additionally creates planning and implementation grants for county agencies seeking to update local codes, and will fund pre-approved housing pattern books for faster permitting.
Directs the US Department of Housing and Urban Development building model design frameworks, and will require Government Accountability Office as well as US Comptroller General lead a study to evaluate the established federal building code, looking at cost effectiveness and construction times.
The Housing for the 21st Century Act also aims to facilitate the development of manufactured housing by permanently repealing the chassis rule and establishing HUD as the federal regulator of manufactured housing construction standards and safety. Tim Larson, President and CEO of Houses of Championsone of the nation’s largest manufacturers of manufactured homes, approved these offers in an earnings call earlier this month.
“We are encouraged that the ability to have a HUD coded home off-chassis is still part of the legal process,” Larson said. “Obviously, you see in Washington, there’s a lot of focus on housing, which increases the supply of affordable housing.”
I National Association of Home Buildersin the statement, and approve the law.
“This housing package takes much-needed steps to address the housing shortage in our country. NAHB is encouraged that, among other helpful changes, the law contains important provisions related to land use and zoning, regulatory changes, and financing tools. For too long, restrictive zoning and land use policies have prevented residential development,” the statement read.
The legislation will improve the HOME Investment Partnerships Program by increasing income eligibility and the maximum average purchase price to better match today’s market conditions.
Other provisions include expanding the eligible use of Community Development Grants to include new construction. There will also be new resources for at-risk tenants, such as increased oversight of HUD-sponsored housing counselors and the establishment of a state eviction helpline.
“We are very motivated by the effort. It is a recognition that the high cost of housing is a major problem in the United States, and that these costs are caused by a lack of resources,” said Shea.
