The U.S. Senate has passed the bipartisan Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 as part of the National Defense Authorization Act. Led by Senators Tim Scott and Elizabeth Warren, this landmark legislation aims to increase housing supply, reduce regulatory barriers, and expand access to affordable mortgage credit. The bill passed unanimously in committee and now moves to the House before heading to the President’s desk.
The ROAD to Housing Act includes more than 40 provisions designed to:
- Increase housing supply
- Reduce red tape that slows development and access to financing
- Strengthen oversight of federal housing programs
- Expand access to affordable mortgages
Key Provisions Include:
- Studying and removing barriers to small-dollar mortgage lending to support buyers in lower-cost markets
- Strengthening the appraisal workforce and enabling consumer-initiated appraisal reviews
- Increasing reporting and accountability for federal housing agencies (HUD, FHA, USDA, VA, FHFA, and others)
- Expanding development incentives, including in Opportunity Zones, through HUD grants, streamlined permitting, and pilot programs
- Funding efforts to convert vacant or abandoned buildings into housing and developing pre-approved design plans to accelerate construction
Industry organizations — including the Mortgage Bankers Association — have praised the bill as a meaningful step toward improving affordability and expanding homeownership access. Senator Warren described it as the most significant federal housing legislation in more than a decade.
How the ROAD to Housing Act Supports HHI’s Work
Stronger Support for Small-Dollar Mortgages
Many distressed and lower-value homes — common in LMI communities — face financing barriers due to small-dollar loan limitations. This legislation directs CFPB and FHFA to study and revise rules that impede these loans.
HHI Impact:
- Expands financing options for buyers in HHI markets
- Increases homeownership access in communities where HHI rehabilitates properties
- Helps revitalize aging neighborhoods with modest housing stock
Incentives to Rehabilitate & Reuse Vacant Properties
The bill’s RESIDE Act provisions fund redevelopment of abandoned and underutilized buildings into attainable housing.
HHI Impact:
- Aligns directly with HHI’s community stabilization mission
- May create new federal resources for distressed property rehabilitation
- Strengthens neighborhood revitalization efforts
Increased Federal Coordination & Grant Opportunities
HUD, USDA, and VA will streamline programs and strengthen collaboration. The bill also encourages Opportunity Zone investment and CDBG-supported housing pilots.
HHI Impact:
- More efficient government partnerships
- Increased access to federal funding opportunities
- Strategic advantages for projects in Opportunity Zones and CDBG-eligible markets
Tools to Expand Housing Supply
The Act promotes local zoning reform guidance, pattern-book housing (pre-approved home designs), and streamlined NEPA reviews for infill development.
HHI Impact:
- Faster rehabilitation and infill development timelines
- Reduced regulatory barriers to housing production
- Greater ability to scale development responsibly in constrained markets
Modernized Appraisal Practices
Appraisal workforce expansion and modernization aim to reduce delays and valuation challenges.
HHI Impact:
- Faster closings and reduced transaction delays
- Fewer appraisal-related obstacles for low-income buyers
- Improved valuation accuracy in underserved communities
Bottom Line
The ROAD to Housing Act strengthens the policy environment around HHI’s mission by:
- Expanding opportunities for affordable homeownership
- Supporting rehabilitation and reuse of distressed housing
- Accelerating development timelines
- Increasing access to federal funding and program alignment
- Improving mortgage access in historically underserved markets
Housing is the foundation of healthy, thriving communities. This legislation marks an important step toward expanding affordable housing, stabilizing neighborhoods, and ensuring more families can achieve the American Dream of homeownership.
