The Housing for the 21st Century Act (H.R. 6644), a wide-ranging federal housing proposal aimed at addressing housing shortages and rising costs, has advanced in the House of Representatives. The legislation outlines a series of policy changes intended to make it easier to build housing, expand financing options, and update existing federal housing programs at a time when affordability remains a growing concern across both rental and homeownership markets.
Background on the legislation
The Housing for the 21st Century Act was introduced in December 2025 and reported by the House Committee on Financial Services in January 2026. According to the committee report accompanying the bill, its goal is to make housing more affordable by modernizing federal housing programs, reducing development costs, and giving state and local governments more flexibility in how housing decisions are made.
The bill is structured across five main sections covering housing supply, development rules, financing, housing assistance programs, and oversight. Many of its provisions build on earlier housing proposals introduced in Congress and overlap with elements of the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025, though the two bills take different approaches in several areas.
An amended version of the legislation was later prepared for possible consideration in February 2026. The updated version adds provisions related to community banks and housing finance and adjusts several pilot programs and reporting requirements. The Congressional Budget Office has determined that the bill would not increase the federal deficit.
Key provisions affecting housing supply and development
A central focus of the bill is increasing housing supply, based on the view among policymakers that too few homes are being built to meet demand. Several provisions aim to make development faster or less costly. The legislation calls for federal guidance on zoning and land-use practices, encourages the use of pre-approved building designs to speed up local approvals, and promotes certain apartment building designs that supporters say could lower construction costs and make it easier to build on smaller lots.
The bill also proposes changes to environmental review requirements for certain housing projects, particularly infill development, with the goal of reducing delays before construction can begin. In addition, it would raise loan limits for federally backed multifamily housing loans, reflecting concerns that current limits no longer match rising construction and financing costs.
Another section of the bill focuses on updating federal housing programs that local governments use to support development. Proposed changes would give communities more flexibility in how federal housing funds are used and allow some federal grant programs to be used directly for new housing construction. The legislation would also create a new grant program to help states and local governments plan housing projects and make land-use changes intended to increase housing production.
Housing finance and affordability measures
The bill also addresses financing barriers that can limit housing supply. One provision would update federal rules around manufactured housing, allowing more design flexibility for factory-built homes that are typically less expensive than traditional construction. Lawmakers say the change could expand lower-cost housing options, though implementation would depend on state adoption.
Another provision creates a pilot program aimed at expanding access to smaller mortgage loans, which are often harder to obtain despite demand for lower-priced homes. The legislation also raises limits on certain bank investments tied to community development, with the intent of increasing available funding for affordable housing and related projects.
Programs affecting renters and assisted housing
Several provisions focus on renters and households receiving federal housing assistance. These include changes to how income is calculated for certain veterans applying for housing programs, expanded coordination between federal housing agencies, and pilot programs designed to help assisted households build savings as their incomes increase.
The bill would also establish a federal eviction helpline intended to connect residents in federally assisted housing with counseling and support services. Additional measures address housing counseling programs and pilot initiatives aimed at improving housing conditions and safety in assisted housing.
Oversight and legislative context
The final section of the bill introduces new oversight requirements, including annual testimony from the Secretary of Housing and Urban Development before Congress and additional transparency requirements for Public Housing Agencies that administer federal housing programs.
The legislation comes as housing affordability continues to be a major policy issue nationwide, driven by high home prices, elevated mortgage rates, rising insurance costs, and limited housing inventory in many markets. The Housing for the 21st Century Act reflects a policy approach focused primarily on increasing housing supply and adjusting federal programs to better align with current market conditions.
The bill remains under consideration in Congress, and its final form may change as lawmakers continue negotiations around broader housing policy proposals.
