Bipartisan Housing Bill Passes House Aiming to Reduce Costs and Increase Homeownership

The House recently passed a bipartisan housing bill, known as the 21st Century Housing Law, with a significant majority of 390-9. This legislation was sponsored by House Financial Services Chairman French Hill (R-Ark.) and Ranking Member Maxine Waters (D-Calif.) and had previously cleared committee in December.

House Speaker Mike Johnson (R-Louisiana) expressed his support for the bill’s passage, stating that “Bidenflation has pushed housing costs beyond the reach of millions of American families.” He pointed to outdated regulations that he feels hinder the supply of affordable housing. Johnson emphasized that the 21st Century Housing Act represents a vital step in reducing unnecessary regulatory obstacles and modernizing the Department of Housing and Urban Development (HUD). He mentioned that the bill empowers banks with more flexibility to help boost housing supply.

In a joint op-ed, Hill and Rep. Mike Flood (R-Nebraska) argued that “when there isn’t enough housing, prices go up.” They claimed that the 21st Century Housing Act includes genuine bipartisan solutions to enhance development by cutting red tape and engaging local communities and banks, which in turn would expand supply, reduce costs, and offer families more options.

Notably, the bill mandates the Government Accountability Office (GAO) to identify flaws in federal housing programs and strives to modernize HUD’s HOME Investment Partnership Program.

The next step for the bill is the Senate, where members can propose amendments or introduce their own legislation.

Senate Banking Committee Chairman Tim Scott (R-S.C.) and Sen. Elizabeth Warren (D-Mass.) had introduced the Housing Affordability Solution Act, advocating for it to be part of the National Defense Authorization Act (NDAA), but it was ultimately excluded from the defense spending bill.

Hill has expressed his intent to collaborate with the Senate to ensure a unified bill reaches the president’s desk, one that reflects a consensus from both chambers.