News & Press

Federal Policy Update: 21st Century ROAD to Housing Act

Wed, 17 Jun 2026 17:42:00 GMT

The Affordable Housing Tax Credit Coalition and the Housing Advisory Group are reporting that after months of back and forth between the chambers of Congress, the leadership of the Senate Banking Committee and the House Financial Services Committee have reached an agreement on a bipartisan 21^st Century ROAD to Housing Act. The Senate approved a motion to move forward with the legislation by a vote of 87-8. They plan to hold a final vote on the bill this week and will send it to the House for a vote next week.

The newest version of the 21^st Century ROAD to Housing ACT does the following:

Restores the House-passed language from the Housing for the 21st Century Act directing HUD to conduct an evaluation of BABA as it pertains to HOME funds and issue updated guidance as part of broader reforms to the HOME program.

Note there was also new legislation (Build Housing Affordably Act) introduced this week by Reps. Flood (R-NE) and Goodlander (D-NH) which promises to “streamline BABA implementation” by requiring a study of the impact of BABA and its waiver process on affordable housing creation, pausing implementation until 60 days after the study has been presented to Congress, and instituting a 90-day timeline for review of waivers for affordable housing projects.

Increases the Public Welfare Investment (PWI) cap from 15 to 20%, allowing for new private capital investment opportunities, and requires a report on PWI use from the Comptroller and Federal Reserve Board (Section 203).
Still bans institutional investors from buying single family homes (Section 1001). However, this version removes earlier language that could have impacted built-to-rent properties, including some LIHTC developments. Committee leadership also made statements of congressional intent noting that this language is not designed to apply to Housing Credit properties.
Simplifies National Environmental Policy Act (NEPA) reviews for smaller housing projects (Section 206).
Raises the Rental Assistance Demonstration (RAD) Cap to 100,000 units.
Extends the Community Development Block Grant Disaster Recovery (CDBG-DR) program for three years.

Senate Banking Committee Chairman Tim Scott (R-SC), Ranking Member Elizabeth Warren (D-MA), House Financial Services Committee Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) have all spoken out in support of the new bill, emphasizing that “2026 is the Year of Affordability” and encouraging the President to sign it into law. You can read a section-by-section breakdown of the legislation here.

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

Thu, 14 May 2026 22:37:00 GMT

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:
· Lifts 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)
· 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 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.
· 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.
· 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 House seeks to pass the bill under a suspension of the rules next week, which fast-tracks debate and requires support from 2/3 of the chamber. The House’s hope is to show another strong bipartisan vote compelling the Senate to pass the new version bill without any further changes. 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).

IHC Executive Director Speaks with Fox 32 about Donation Tax Credit Renewal

Wed, 22 Apr 2026 16:17:00 GMT

The Illinois Affordable Housing Tax Credit - often referred to as the “state donation credit” - is set to expire at the end of this year unless the General Assembly acts to renew it. At the same time, demand for the program has far outpaced available resources, underscoring the urgent need not just for renewal, but for an increase in funding.

IHC Executive Director Allison Clements and IHC member Richard Koenig recently spoke with Fox 32 about why preserving and expanding this critical tool is essential to meeting Illinois’ growing affordable housing needs. We encourage you to watch the interview and contact your state legislators to support HB 4413 / SB 3738, ensuring this program can continue - and grow - to meet the demand. WATCH HERE: https://ift.tt/bYL9hBC

IHC's legislative efforts have also been covered by The Chicagoland Journal and Evanston Now.

Senate Passes 21st Century ROAD to Housing Act

Fri, 13 Mar 2026 16:51:00 GMT

Today, the Senate advanced the bipartisan 21st Century ROAD to Housing Act by a vote of 89-10. See the section-by-section and bill text of the comprehensive housing legislation.

Previously, Senate Banking Committee Chairman Tim Scott (R-SC) released an amendment in the nature of a substitute, which 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), providing the basis for the 21st Century ROAD to Housing Act.

Our partners at the Affordable Housing Tax Credit Coalition (AHTCC) note that the comprehensive legislation includes provisions to:
• Lift the public welfare investment (PWI) cap from 15 to 20 percent, which could unlock billions of dollars in additional investment in the Housing Credit. (See Sec. 204, Community Investment and Prosperity Act)
• Ban institutional investors from buying single family homes. (See Sec. 901, Homes Are For People, Not Corporations)
• Note that as written, the proposal could adversely impact some Housing Credit properties, as it does not clearly exempt the Housing Credit from the forced sale of build-to-rent properties after seven years. The AHTCC and others have weighed in with Congress to encourage changes to clearly exempt Housing Credit properties from the institutional investor ban as the legislation continues to move through the process.
• Streamline NEPA reviews for small and infill housing projects. (Sec. 208 – Unlocking Housing Supply Through Streamlined and Modernized Reviews Act)
• Lift the RAD cap. (Sec. 201 – Rental Assistance Demonstration Program)
• Reform the HOME program. (See Sec. 502 – HOME Investment Partnerships Reauthorization and Reform Act)
• Note that the bill does NOT include the House-passed language from the Housing for the 21st Century Act that would direct HUD to conduct an evaluation of Build America, Buy America (BABA) as it pertains to HOME funds and issue updated guidance. IHC is working with our national partners to continue to pursue opportunities to address overly burdensome BABA requirements.

The House will now need to vote on the legislation again to align with the Senate-passed version or make further negotiations. In recent days, House Financial Services Committee Chairman French Hill (R-AK) has indicated he will not accept the Senate’s bill without changes and will insist that the bill go to conference to include more of the House’s priorities, a call that was echoed by House Majority Leader Steve Scalise (R-LA). If the House and Senate choose to resolve their differences through a conference committee, the Affordable Housing Tax Credit Coalition (AHTCC) has urged swift action to enact a final housing package and has expressed support for any improvements that further strengthen the Housing Credit and sustain private investment in affordable housing. In particular, AHTCC has called for changes that would clearly exempt Housing Credit properties from the proposed ban on institutional investors.

The White House has issued its support of the current legislation, which includes the President's priority on banning institutional investors. However, President Trump has also threatened to not sign any legislation until the SAVE Act is signed into law.

We will keep members informed as the legislation progresses.

IHDA | Preservation Limited Rehabilitation Program 2.0

Mon, 23 Feb 2026 21:37:00 GMT

The Illinois Housing Development Authority (IHDA) is requesting applications for funding under the Preservation Limited Rehabilitation Program 2.0 (Preservation 2.0). This program will be similar to the Capital Bill Preservation Limited Rehabilitation Program created in 2022 and will provide subordinate financing to IHDA-assisted developments that have outstanding capital improvement needs that cannot be met using existing reserves. Approximately $30 million in preservation grant funds are available. All prospective applicants should review the Request for Application and accompanying Application Workbook on the IHDA website for more information: Preservation 2.0 RFA and Application.

All questions should be directed to PreservationProgramLimitedRehab@ihda.org. More information on how to register for the Preservation 2.0 virtual information sessions will be available in the coming weeks.

Representatives Seek to Address the Housing Crisis by Passing the Housing for the 21st Century Act

Mon, 23 Feb 2026 21:35:00 GMT

On February 9th, the House passed the Housing for the 21st Century Act by 390-9. Supporters believe the legislation could make housing production less expensive while increasing efficiency and reforming burdensome regulations. The Senate is expected to vote on their own Road to Housing Act before the end of the month. Both bills contain the Community Investment and Prosperity Act. However, there are key differences between the two pieces of legislation. The House Bill includes the HOME Reform Act while the Senate bill includes both the Rural Housing Service Reform Act and the Reforming Disaster Recovery Act. Once the Senate has passed their version of the bill, both chambers will need to negotiate a compromise package incorporating their priorities. If successful, this legislation could mark the most significant housing package passed in nearly two decades.

One major proposal that did not make the final cut was an exemption of the Build America Buy America mandate for HOME funds. There is resistance from the trades, especially the Steel Workers, to exempting any program from BABA. That said, our federal partners are working with Members of Congress who would like to address this issue and will be meeting with HUD to see what can be done to expedite the waiver process.

Governor Pritzker Announces Major Housing Proposals

Fri, 20 Feb 2026 16:33:00 GMT

Ahead of his State of the State address later today, Governor Pritzker previewed a housing package aimed at increasing supply and reducing barriers to development across Illinois. The proposal would significantly limit local governments’ ability to restrict residential building types and legalize accessory dwelling units (ADUs)—such as backyard cottages and above-garage apartments—on all residentially zoned properties statewide. The plan also establishes statewide timelines for permitting and inspections, allowing third-party reviewers if municipalities miss deadlines. In addition, it includes $250 million combined for site preparation grants, middle housing development, and first-time homebuyer assistance. IHC will continue monitoring the proposal and provide updates as more details become available.

THUD Funding Passed by Congress for Fiscal Year 2026

Fri, 20 Feb 2026 16:25:00 GMT

Disagreement over funding for the Department of Homeland Security (DHS) led to a partial shutdown on January 31st. On February 3rd, the House voted 217-214 to pass legislation that includes a full HUD funding bill and the President signed it that evening. This bill largely follows the Senate’s proposal, rejecting most calls from the administration to cut rental or homelessness programs. It allocates a discretionary budget of $77.3 billion to HUD, up $8.6 billion from FY25. The bill increases funding for Section 8, maintains level funding for the HOME program, preserves Continuum of Care (COC) funding, and avoids cuts to most other key programs. You can read the Affordable Housing Tax Credit Coalition’s breakdown of the bill here.