The U.S. House of Representatives passed comprehensive housing legislation Monday by a vote of 390-9, advancing a bipartisan package designed to address the nation's housing affordability crisis through regulatory reforms and increased construction incentives.

The Housing for the 21st Century Act targets what lawmakers identified as key barriers to housing development, including regulatory hurdles that delay construction projects and financing constraints that limit community bank lending for housing development. The legislation provides incentives for builders and local governments to boost construction by reducing regulations around home construction.

Key Provisions of the Legislation

The package includes provisions to lift banks' public welfare investment cap, which supporters say could unlock billions in additional private-sector investment for affordable housing development using the low-income housing tax credit program. When Congress previously raised this cap from 10 percent to 15 percent in 2006, national bank public welfare investments grew from $3.1 billion in 2005 to $27.9 billion in 2024, according to the Affordable Housing Tax Credit Coalition.

Additional measures in the bill would reinstate the federal tax deduction for mortgage insurance premiums, simplify the process for providing housing grants, remove regulations requiring manufactured homes to have permanent chassis, and remove barriers for veterans accessing public housing. The legislation also establishes a congressional oversight process for the Department of Housing and Urban Development.

Industry and Political Response

The National Association of Realtors issued targeted calls for action urging congressional support and sent letters to Speaker Mike Johnson and House Minority Leader Hakeem Jeffries backing the measure. NAR representatives cited reports from members across the country of tight inventory, particularly a shortage of affordable starter homes, along with rising construction costs and regulatory hurdles discouraging new development.

The vote comes as housing affordability has emerged as a priority issue across party lines, with lawmakers acknowledging that rising housing costs have become a significant concern for constituents. The legislation now moves to the Senate, where it will face negotiations with that chamber's pending housing reform bill, the Renewing Opportunity in the American Dream to Housing Act.

Next Steps

Senate consideration represents the next major hurdle for the housing package, as lawmakers work to reconcile differences between the House-passed bill and Senate proposals. The overwhelming House vote suggests strong momentum for housing reform legislation, though specific timing for Senate action remains unclear.