July 30, 2026

The ROAD to Housing Act: How Communities Can Prepare

Congress has moved toward a broad housing package that connects federal housing programs more directly to permitting, land use and project delivery. This legislation, the 21^st Century ROAD to Housing Act, marks an important bipartisan shift in federal housing policy.

In short, the act is designed to lower housing costs and combat the national housing shortage by accelerating private construction and restricting large investors from buying single-family homes.

The act will also impact U.S. Department of Housing and Urban Development (HUD) grants, Community Development Block grants (CDBG) and HOME grants, which cities rely on to fund affordable housing and maintain neighborhood infrastructure.

The act preserves local zoning authority while creating new guidance and tools intended to encourage housing production.

Our urban planning experts at Freese and Nichols are aware of these changes, are looking out for your interests and are here to help you navigate the potential impacts.

Changing Federal Landscape

Local governments continue to control zoning, land use and development approvals, but federal housing policy will play a larger role.

The act directs HUD to publish best practices for state and local zoning policies, creating a benchmark for evaluating whether local codes support housing production.

Communities with updated codes, streamlined approval procedures and measurable housing outcomes may be more competitive for federal and state funding, while outdated codes could limit opportunities.

The act also directs HUD to establish guidance for point-access block buildings (apartments up to six stories, served by a single internal stairway), providing a framework for modernizing building codes where small infill sites and narrow lots constrain housing development.

Housing Production Funding Incentives

The act creates a $200 million annual competitive grant program for local governments that increase housing supply through actions such as streamlined permitting, zoning changes and density bonuses.

The seven-year program rewards measurable housing production rather than traditional federal housing metrics like project financing, income targeting or administrative compliance.

Broadened Affordable Housing Tools

The act expands the use of CBDG funding to include new affordable housing construction, giving communities greater flexibility beyond traditional uses like infrastructure rehabilitation and public services. This effectively treats housing as a piece of infrastructure, allowing affordable housing construction to receive funds directly in the same way that those funds are used to fix streets and utilities.

It also creates new opportunities for local governments to align existing housing tools and partnerships with federal funding to support affordable housing.

Faster Project Delivery

The act streamlines federal environment review for certain housing projects by expanding National Environmental Policy Act categorical exclusions, simplifying compliance and increasing HUD’s ability to delegate reviews.

While local permitting requirements remain, faster federal review could reduce delays for affordable housing. The act also funds pre-reviewed model housing plans, such as accessory dwelling units, duplexes and townhomes, helping communities speed approvals and reduce development barriers.

Policy guidance for local governments

Local officials should prepare for HUD to evaluate housing performance through measures such as permitting, production and code updates.

Communities can benefit by updating development regulations, improving permit tracking and identifying projects eligible for streamlined review or expanding funding.

While local control remains central, the act shifts federal policy toward rewarding housing production and regulatory efficiency. Although it will not solve the housing affordability crisis on its own, it signals a lasting federal emphasis on increasing housing supply through regulatory reform.

As an expert in development code services, Freese and Nichols has assisted dozens of cities and counties of all sizes with evaluating and updating zoning and subdivision ordinances. Our team has decades of code experience in both the public and private sector, along with national expertise in planning and codes, and a public-sector focus that allows us to partner with public agencies with the goal of managing growth and development more effectively.

For more information or if you have any questions, please contact Wendy Bonneau, Daniel Harrison, David Jones or Chance Sparks.