May 15

House to Vote on Revised 21st Century ROAD to Housing Act Next Week

Legislation Exempts Housing Credit Properties from Institutional Investor Ban

Last night, House Financial Services Committee Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) released a bipartisan amendment to the Senate-passed 21st Century ROAD to Housing Act.

The newly released 21st Century ROAD to Housing Act text includes provisions that:

  • Lift the public welfare investment (PWI) cap from 15 to 20 percent, potentially unlocking billions of dollars in additional investment in the Housing Credit. (See Sec. 203, Community Investment and Prosperity Act)
    • This proposal remains one of the AHTCC’s top priorities to meaningfully increase bank investment in affordable housing and has been included in each bill version.
    • The amendment also adds a new provision requiring the Comptroller of the Currency and the Federal Reserve Board of Governors to submit a report to Congress on the use of PWIs.
  • Ban institutional investors from buying single family homes. (See Sec. 1001, Homes Are For People, Not Corporations)
    • Housing Credit properties are now explicitly exempted and there is no forced sale of build-to-rent (BTR) properties after seven years – fixing language from the Senate-passed legislation which would have adversely impacted some Housing Credit properties.
    • This change was supported by a bipartisan group of 76 Representatives who signed onto a letter urging House leaders to revise language banning institutional investors from buying single-family homes.
    • In addition to working to build support for the congressional sign-on letter, the AHTCC has signed letters with industry partners calling for changes to the BTR provisions, and at the very least, an exemption for the Housing Credit.
  • Reform the HOME program. (see Sec. 501 – HOME Investment Partnerships Reauthorization and Reform Act)
    • Restores the House-passed language from the Housing for the 21st Century Act directing HUD to conduct an evaluation of Build America, Buy America (BABA) as it pertains to HOME funds and issue updated guidance.
    • The AHTCC supports modifications to BABA requirements for affordable housing development, including those financed with the Housing Credit, and has signed on to an industry proposal recommending changes to current BABA implementation in order to reduce uncertainty and administrative burdens, as well as a HOME Coalition letter urging Congress to incorporate provisions from the HOME Reform Act (H.R.5798) into the 21st Century ROAD to Housing Act.
  • Streamline NEPA reviews for small and infill housing projects. (Sec. 207 – Unlocking Housing Supply Through Streamlined and Modernized Reviews Act)

The House amendment adds back in community banking provisions that are a priority for Chairman Hill and drops provisions from the Senate bill that would have created a permanent disaster recovery framework and expanded the Rental Assistance Demonstration (RAD) and Moving to Work programs.

The new bill text follows a post from President Trump on Truth Social Monday night urging Congress to pass the legislation, and the White House has previously issued its support of the Senate’s 21st Century ROAD to Housing legislation.

In March, the Senate passed the 21st Century ROAD to Housing Act by a vote of 89-10. This legislation combined elements of the Senate’s ROAD to Housing Act (S.2651) and the House’s Housing for the 21st Century Act (H.R. 6644).

Ultimately, the AHTCC encourages swift action to enact a final housing package that continues to strengthen the Housing Credit and support private investment in affordable housing. We also applaud changes in this version of the bill that clearly exempt Housing Credit properties from the ban on institutional investors.

 

The Impact of Lifting the PWI Cap

Lifting the PWI cap from 15 to 20 percent would expand private capital available for affordable housing by increasing banks’ capacity to invest in the Housing Credit. The AHTCC, Affordable Housing Investors Council and National Association of Affordable Housing Lenders recently surveyed 22 banks, representing more than $14 billion in 2024 Housing Credit investments. The survey found that over 42 percent of the represented investments ($6.1 billion) came from banks approaching the current 15 percent PWI cap. Expanding banks’ capacity to invest in the Housing Credit could help sustain demand for the additional credits made available through the program’s historic expansion in the One Big, Beautiful Bill Act (H.R. 1) earlier this year. Read more in the AHTCC’s fact sheet outlining how the PWI cap increase would impact affordable housing production.