Aug. 24, 2026
When the 21st Century ROAD to Housing Act was enacted into law in July, it was hailed as the largest housing affordability bill in the U.S. in decades. The landmark legislation, which was passed with bipartisan support in Congress and championed by the American Planning Association (APA) and other key housing advocates, creates new or expanded tools to increase housing supply and reduce barriers.
“With an estimated shortage of 4 million housing units, the housing crisis impacts every community across America in some way,” said Jason Jordan, APA’s principal of public affairs, during an August panel discussion hosted by APA. “Planners have been on the frontlines of the search for local solutions, working on a range of reforms and partnerships designed to increase housing supply and affordability.”
While not a panacea, housing experts believe the 21st Century ROAD to Housing law will help federal programs be more responsive to today’s housing challenges and support communities working to improve their local systems, policies, and codes. “Planners are going to be essential to shaping guidelines and implementation of the law,” Jordan said.
What is paving the ROAD forward?
The 21st Century ROAD to Housing law consists of dozens of individual pieces of legislation that likely would never have gotten traction at the national level on their own, said Michael Wallace, legislative director for housing, community, and economic development at the National League of Cities (NLC). “It’s a bill that’s going to help us do our jobs better,” he said. “It offers improvements that will benefit everyone who is involved in delivering housing in the public and private sectors.”
At the August APA event — “Planning for Housing Reform: What’s in the 21st Century ROAD to Housing Law?” — Wallace, Jordan, and Up for Growth CEO Mike Kingsella highlighted four important aspects of the new law.
Learn about the key elements of the new law that reflect ideas and priorities championed by APA and planning advocates in this fact sheet.
PLAN FOR MANUFACTURED HOUSING
The law removes the federal rule requiring that manufactured housing regulated by the Department of Housing and Urban Development (HUD) sit on a permanent steel chassis. Removing the chassis could reduce project costs by $5,000 to $10,000, according to the Niskanen Center, a think tank.
Kingsella believes the change will open opportunities for innovative partnerships with factory-built housing producers, generating both year-round employment and new homes. “Planners should be aware of it, thinking about siting, and working to take advantage of this in their own housing plans.”
Prepare for CBDG Changes
There are several financial changes included in the new law, like increasing the public welfare investment cap on banks — which limits the amount banks can typically put into projects tied to federal programs like the Low-Income Housing Tax Credit — from 15 to 20 percent. It also creates a new pilot grant program to encourage housing in designated opportunity zones and allows HUD to prioritize those projects.
However, there also are several changes to the Community Development Block Grant (CDBG) program, including allowing program funds to be used for new affordable housing construction. CDBG recipients also are required to maintain a database of publicly owned land.
The Build Now Act is one of the more controversial provisions. It looks at a city’s history of housing production and, if a CDBG grantee can show improvements, it will be eligible for a 10 percent increase in its bonus payments. However, if the data shows the city hasn’t improved or has just kept up with national median, it could see funding cut by 10 percent. There are exceptions to this, including for communities recovering from major disasters or emergency declarations within the past three years.
The provision won’t go into effect for two years, but “you don’t have to wait for HUD,” said Wallace. “You can look at your own history of housing production and try to make an educated guess on where you’ll land.”
“Planners are going to be essential to shaping guidelines and implementation of the law.”— Jason Jordan, APA’s principal of public affairs
Pick your housing plans
The law authorizes new grants to help cities create pre-approved building designs and site plans. Wallace called this a great incentive that will bring down developers’ costs, but stressed that it isn’t mandated. This section is an example of the many provisions designed to either motivate or support action.
“You know what kind of housing can be built in your city just through the market and what it will support,” Wallace said, “and you know the kinds of housing that your city really wants and needs that may not be supported by the housing that can be built today.”
Cities like Fayetteville, Arkansas, which implemented its Permit-Ready Building Design Program in 2024, are ahead of the curve. That program allows residents to save time on design and lower costs by using one of the more than 30 already-approved designs for single-family homes, townhomes, duplexes, or accessory dwelling units.
Work with Leaders and Lenders
It’s important to remember that the 21st Century ROAD to Housing law doesn’t create new funding — that will be determined later, during the appropriations process. To take real advantage of the law, it’s incumbent on decisionmakers to work together to make the most of the new provisions and align zoning with a community’s housing goals.
Wallace advises planners to start strengthening partnerships now, especially about lending. “You’re not going to be able to apply for everything in the bill, but something in it is going to resonate for projects that might not have penciled out in the past” and might work now with different lending incentives, he said.
Ownership of the process depends on planners becoming active. “I think of this as a baton race,” added Kingsella. “The coalition that came together at the federal level to get the law across the finish line has done its job. Now, the next chapter belongs to city leaders and planners in taking these tools and putting them into effective use on the ground.”
What’s next?
After the appropriations process, the next step for the 21st Century ROAD to Housing law is drafting the its specific rules and guidelines. Planners will be crucial in implementing the law at the local level to ensure it creates the housing impact that lawmakers intended.
Stay Informed!
APA has compiled resources to help planners and local leaders sort through the new law and will continue to do so. The panel discussion “Planning for Housing Reform” will be available to subscribers in Passport.
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