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At a Glance 

The 21st Century ROAD to Housing Act creates new federal tools intended to increase housing supply and expand pathways to homeownership. 

  • Key provisions support faster permitting, pre-approved housing plans, small-dollar mortgages, veteran homebuyers and improved appraisal reviews. 
  • Washington State has already expanded zoning capacity through state law, so the act’s greatest local value may be helping communities turn that capacity into homes that can actually be financed, permitted and built. 
  • New local-government grants are not yet available. Some programs require HUD rulemaking and future congressional appropriations, including a Housing Supply Innovation Fund authorized at up to $200 million annually. 

NAR spent nearly two years helping advance the legislation, making its passage a significant example of how REALTOR® membership dues support federal advocacy that benefits housing consumers and the real estate market. 

The 21st Century ROAD to Housing Act took effect Saturday, July 11th, advancing one of the most significant bipartisan federal housing packages in nearly two decades. 

For REALTORS®, this legislation matters because it addresses the problem at the center of today’s affordability crisis: there are not enough homes available for the people who want to buy them. 

The act approaches the housing shortage from several directions by helping communities approve more homes, reducing obstacles to construction, modernizing manufactured and modular housing, improving access to financing and creating new resources that can help local governments turn housing plans into completed homes. 

Just as importantly, this legislation represents a major REALTOR® advocacy victory. The National Association of REALTORS® (NAR) spent nearly two years working with members of Congress, providing housing research and technical expertise, mobilizing REALTORS® through calls for action and making housing supply a national priority. NAR reports that REALTORS® held thousands of meetings with lawmakers and staff, and nearly 8,000 REALTORS® traveled to Washington, D.C. this past June during the final legislative push. 

As Shannon McGahn, NAR’s executive vice president and chief advocacy officer, explained: 

“The 21st Century ROAD to Housing Act will help increase housing supply, improve affordability, expand opportunities for first-time homebuyers, and empower more families to achieve the American Dream of homeownership.” 

McGahn called the legislation the product of nearly two years of work and a historic opportunity to strengthen the housing market, expand access to homeownership and create lasting economic opportunity. 

Why Increasing Housing Supply Matters 

After more than a decade of underbuilding, NAR estimates that the United States is short approximately 4.7 million homes. The shortage is especially damaging to first-time and middle-income buyers, who are often competing for a limited number of entry-level homes. 

A market with too little inventory also means fewer transactions and fewer opportunities for REALTORS® to help families move, purchase their first home, downsize or relocate. 

Helping Communities Turn Housing Plans Into Actual Homes 

One of the most important components of the legislation is the creation of new tools and potential funding for local governments that increase housing production. 

The act authorizes a Housing Supply Innovation Fund of up to $200 million annually for fiscal years 2027 through 2031, subject to future congressional appropriations. Grants could range from $250,000 to $10 million and would reward jurisdictions that can demonstrate measurable housing-supply growth and explain how additional resources would help produce more housing. 

For communities in Pierce County, potential uses could include: 

  • Infrastructure needed to support new homes; 
  • Permitting technology and staffing; 
  • Site preparation; 
  • Implementation of adopted housing plans; 
  • Improvements to development-review processes; and 
  • Other programs that help move housing from zoning approval into construction. 

TPCAR is encouraging local governments to begin preparing now by documenting housing production, identifying infrastructure and permitting barriers, and developing projects that may be competitive when federal applications open. 

Making Middle Housing Easier to Build 

Washington has already adopted substantial zoning reforms through legislation such as E2SHB 1110, which requires many communities to allow additional middle-housing options. 

That means the greatest challenge is no longer whether a duplex, townhome, fourplex or cottage development is legally allowed but whether those homes can be designed, permitted, financed and built at a price that works for future buyers. 

The ROAD to Housing Act authorizes grants for local governments to create pre-approved housing plans for projects of up to 25 units, including: 

  • Starter homes; 
  • Townhomes; 
  • Duplexes, triplexes and fourplexes; 
  • Cottage housing; 
  • Accessory dwelling units; and 
  • Small multiplex and infill developments. 

By completing portions of the architectural and code review in advance, a jurisdiction could give builders a faster and more predictable permitting path which  reduces design costs, shortens review timelines, and makes smaller projects financially feasible. 

In Washington State, this provision could help communities move beyond merely permitting additional density and toward producing ready-to-use plans that builders can actually take to market. 

Improving Financing for Lower-Priced Homes 

The legislation authorizes an FHA pilot program for mortgages below $100,000 and directs federal regulators to examine whether existing compensation and fee rules discourage lenders from originating small-dollar mortgages. 

A lower-priced home is not a meaningful homeownership opportunity if a qualified buyer cannot obtain financing for it. 

This provision could help buyers seeking manufactured homes, modest older homes or homes in lower-cost and rural markets. Its effect may be limited in much of central Puget Sound, where prices are substantially higher, but it addresses a financing gap that can prevent otherwise attainable homes from being purchased. 

Supporting Veterans and Improving the Appraisal Process 

Mortgage applications will be required to provide greater notice to eligible veterans about their potential qualification for a VA-backed home loan. This can help ensure veterans understand and use benefits that may allow them to purchase without a traditional down payment or private mortgage insurance. 

The legislation also requires lenders working with federally backed mortgage programs to establish procedures for consumers to request a reconsideration of value or a second appraisal. 

Protecting More Homes for Individual Buyers 

The Act restricts certain additional purchases of existing single-family homes by large institutional investors that own at least 350 properties, while maintaining exceptions for qualifying new construction and build-to-rent activity. 

The impact of this provision will vary by market, and it will not force large investors to sell the homes they already own. However, its intent is to reduce competition between well-capitalized institutional buyers and individual households seeking to purchase existing homes. 

What This Could Mean for Pierce County 

TPCAR does not expect that the legislation will transform the local housing market overnight. Many programs still require federal rulemaking, congressional appropriations and local applications. 

Housing production will also continue to be affected by local zoning policies, land prices, interest rates, construction costs, utility capacity, impact fees, and local permitting requirements. However, the act could help Pierce County communities address several barriers that remain after recent state zoning reforms. 

Over time, successful implementation could support: 

  • More townhomes, cottages and smaller ownership options; 
  • Faster and more predictable permitting; 
  • Additional manufactured and modular homes; 
  • Better financing for lower-priced properties; 
  • Infrastructure supporting new development; 
  • More effective use of publicly owned land; and 
  • Stronger partnerships between jurisdictions, builders and housing organizations. 

TPCAR will continue monitoring the development of these programs and hopes to work with local governments to help Pierce County compete for available resources. 

REALTOR® Advocacy in Action 

The passage of the ROAD to Housing Act is also an important reminder of what REALTOR® membership supports. 

NAR engaged throughout the development of the final package, which combines nearly 50 individual housing proposals. Its work included congressional testimony, original housing research, public-opinion polling, technical policy recommendations, calls for action and direct meetings between REALTORS® and federal lawmakers. 

NAR describes the legislation as the culmination of nearly two years of sustained advocacy by the organization and its members. 

That is a tangible return on membership. 

REALTOR® advocacy helps ensure that lawmakers hear from professionals who understand how housing policy affects buyers, sellers, property owners and communities. In this case, that work helped move a major bipartisan housing package through Congress at a time when affordability and limited inventory are restricting both homeownership and real estate activity. 

For REALTORS®, more housing means more consumer opportunity, healthier communities and a stronger real estate market. Helping make that possible is one of the most important ways the REALTOR® organization works on behalf of its members. 

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