Bill introduces reforms to increase homeownership opportunities and address housing crisis
Republican Senator Tim Scott (R-S.C.) has introduced the ROAD to Housing Act, a bill aimed at reforming housing policies and improving housing affordability.
The bill, co-sponsored by seven other Republican senators, seeks to reverse decades of failed housing policies and enact targeted reforms across the housing market.
“Costs to buy a home and to rent continue to increase, and homelessness is at record levels. It’s past time for Congress to take serious action to reverse decades of failed housing policies and put all Americans on the road to housing,” the senator and ranking member of the Senate Committee on Banking, Housing, and Urban Affairs said in a media release.
ROAD to Housing
The Renewing Opportunity in the American Dream (ROAD) to Housing Act includes provisions that touch on everything from financial literacy to affordable housing construction.
One key component of the legislation is its effort to boost housing supply, which many experts say is crucial to making homes more affordable. This includes supporting the construction of more manufactured homes, expanding small-dollar mortgage lending, and encouraging private investment in public housing through the Rental Assistance Demonstration (RAD) program.
The bill also includes various measures aimed at addressing different segments of the housing market, such as improving housing counselling and financial literacy, promoting self-sufficiency among low-income families, and prioritizing housing development in Opportunity Zones.
The Mortgage Bankers Association (MBA) has thrown its support behind the ROAD to Housing Act, praising the bill for its broad approach to tackling housing challenges and increasing homeownership opportunities across the country.
“Housing supply and affordability is a national problem that demands the focused attention of Congress and federal housing agencies,” MBA President and CEO Bob Broeksmit said in a statement. “We are encouraged that housing is a major policy discussion this election cycle, including the airing of many proposals that require congressional action.”
Broeksmit highlighted several aspects of the bill that the MBA sees as vital to improving the housing landscape.
“This includes enhanced housing counseling and financial literacy measures as well as beneficial reforms designed to increase manufactured housing construction, small-dollar mortgage lending, construction grants, building or preservation of housing in Opportunity Zones, and to promote regular, sustainable dialogue between federal agencies and Congress,” he said.
Addressing housing crisis
The ROAD to Housing Act also introduces reforms to support the most vulnerable populations. For example, it includes measures to improve homelessness programs by setting aside funds to reward grantees who can show measurable improvements in helping homeless individuals​.
The bill also emphasized good governance, requiring annual testimony from HUD’s leadership and frequent updates to Congress on the state of the FHA’s Mutual Mortgage Insurance Fund.
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Senator Scott was joined by several Republican colleagues on the Senate Banking Committee in introducing the bill, including Senators Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), and others.
The bill now heads to the Senate for consideration, and the MBA has pledged to work with policymakers on both sides of the aisle to build consensus and push forward reforms aimed at making housing more affordable for all Americans.
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