The 21st Century ROAD to Housing Act: A Complete Summary

The 21st Century Renewing Opportunity in the American Dream (ROAD) to Housing Act took effect on July 11, 2026, marking the passage of the first comprehensive federal housing legislation in decades.

Key Takeaways

• The 21st Century ROAD to Housing Act became law on July 11, 2026. It’s the first comprehensive federal housing legislation in decades.
• The ROAD to Housing Act bars institutional investors that control 350 or more single-family homes from buying additional homes.
• The RESIDE program funds convert vacant buildings into housing with grants up to $10 million. Most units must serve households earning 60% or less of the area median income.
• Federal funds, like the Innovation Fund, award up to $200 million in competitive grants to local governments.
• The ROAD to Housing Act codifies the CDBG-DR program for three years, streamlining the delivery of disaster recovery funds to affected communities.
• The Act redefines manufactured housing and raises FHA Title 1 loan limits.
• Tax rates do not change, nor are new tax credits created.

What Is the Purpose of the ROAD to Housing Act?

The bipartisan act aims to stabilize the housing market by addressing affordability, increasing supply, and increasing homeownership opportunities through a broad set of policy interventions, including regulatory reforms and pilot program authorizations. The Act impacts a wide variety of stakeholders, including:

• Tribal nations
• Disaster-impacted communities
• Rural communities
• State Housing Finance Agencies and Public Housing Authorities
• Housing counseling agencies
• Community banks and credit unions
• Affordable housing developers and investors
• Manufactured and modular home builders
• Institutional single-family rental operators
• Renters and homeowners
• Veterans

Key Provisions of the ROAD to Housing Act

Restrictions on Institutional Investors in Single-Family Homes

To boost homeownership and supply, ROAD prohibits large institutional investors from purchasing additional single-family homes unless the purchase qualifies as an exemption. Larger investors are defined as for-profit entities that invest in, own, rent, manage, or hold single-family homes and control 350 or more of them.

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Reauthorizing HOME and Launching the RESIDE Program

To further increase housing supply, ROAD reauthorizes the HOME Investment Partnerships Program. It establishes the Revitalizing Empty Structures Into Desirable Environments (RESIDE) program, a subprogram that provides grants of up to $10 million to convert vacant and abandoned buildings into housing. Converted housing would be available to households earning up to 120% of Area Median Income (AMI). Still, the majority of the units in a property must be designated for households earning no more than 60% of AMI.

The Innovation Fund: Grants to Create Affordable Housing

The Innovation Fund is another method to serve low-income households. Recognizing communities that have demonstrated increased housing supply, the fund awards up to $200 million in competitive grants to local communities to make infrastructure improvements and create more affordable housing.

Codification of the CDBG-DR Program

ROAD authorizes the Community Development Block Grant Disaster Recovery (CDBG-DR) program for a period of three years. This codifies the program for the first time and allows the Department of Housing and Urban Development (HUD) to allocate long-term recovery funds significantly faster after a presidentially declared disaster. It also brings the list of CDBG eligible activities more in line with those under the CDBG-DR program by making new affordable housing construction eligible.

How Does the Act Redefine Manufactured Housing?

The Act also amends the definition of manufactured housing, removing the requirement that it be constructed on a permanent steel base, thereby spurring innovation and reducing the cost of producing manufactured housing, and increases the loan limits for the Federal Housing Administration (FHA) Title 1 home improvement loans and manufactured home purchase loans, and updates mortgage lending standards for expanded access.

Miscellaneous Provisions of the ROAD to Housing Act

Other provisions include measures to streamline environmental reviews and HUD inspections, incentivize housing development and zoning reform, and allow increased affordable housing investment and economic mobility, all with the goal of making housing more affordable by increasing production and reducing costs. It’s important to note that the bill does not include funding for the programs it creates or reauthorizes, and many of the provisions require agency rule-making and appropriations before these changes can be implemented. It’s also important to note that the Act does not change tax rates or create new tax credits.

The Road to Success with EisnerAmper

The provisions of the 21st Century Road to Housing Act bring impactful change for low-income, urban communities. At EisnerAmper, our services range from affordable housing and real estate advisory to grants management and disaster recovery. Our cross-functional teams have the resources and knowledge to help you navigate the 21st Century ROAD to Housing Act and its impacts. Ready to get started or have any questions on how the Act affects you? Contact us today.