This week, the House passed the “Housing for the 21st Century Act,” a landmark bipartisan legislation aimed at addressing the housing crisis impacting communities across the country. Led by Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, alongside Chairman French Hill (R-AR), Housing and Insurance Subcommittee Ranking Member Emanuel Cleaver, II (D-MO), and Subcommittee Chair Mike Flood (R-NE), H.R. 6644 advanced out of the House and to the Senate with overwhelming bipartisan support and aims to deliver long-needed updates to federal housing programs.
The legislation incorporates key provisions advanced by Committee Democrats to expand access to homeownership, accelerate the construction of manufactured housing, increase the availability of small-dollar mortgages, strengthen protections for borrowers and families living in public and assisted housing, enhance federal oversight of housing providers, and help lay the groundwork for new affordable housing development nationwide. The bill also includes several provisions to help community financial institutions – including community banks, credit unions, community development financial institutions (CDFIs) and minority depository institutions (MDIs) – grow to better meet the housing needs of their communities.
The bill includes 20 housing provisions drawn directly from legislation introduced by House Democrats, including:
H.R. 5907, the “Accelerating Home Building Act” or Section 102, introduced by Rep. Janelle Bynum (D-OR), which would establish a pilot grant program at the Department of Housing and Urban Development (HUD) to create pattern books of approved, standardized housing plans to speed up the permitting and home building process.
H.R. 6345, the “Point-Access Housing Guidelines Act” or Section 103, introduced by Rep. Ritchie Torres (D-NY), which would require HUD to issue best practices to increase permitting so called “point-access” block residential buildings and allow for more family-sized units to fit in the building floorplans and lower development costs.
H.R. 4810, the “Better Use of Intergovernmental and Local Development (BUILD) Housing Act” or Section 104(b), introduced by Rep. Sam Liccardo (D-CA), which would streamline the National Environmental Policy Act (NEPA) review process for certain housing projects and services funded by HUD to increase housing development.
H.R. 6327, the “Rural Housing Regulatory Relief” or Section 105(b), introduced by Rep. Vicente Gonzalez (D-TX) and Rep. Eugene Vindman (D-VA), which would exempt certain rural housing construction or modification projects from NEPA requirements.
H.R. 5798, the “HOME Reform Act of 2025” or part of Section 201, introduced by Rep. Emanuel Cleaver (D-MO) and Rep. Mike Flood (R-NE) which would overhaul HUD’s HOME Investment Partnerships Program, the largest federal block grant to states and localities to create and preserve affordable housing for low-income households.
H.R. 2031, the “HOME Investment Partnerships Reauthorization and Improvement Act” and also part of Section 201, introduced by Rep. Joyce Beatty (D-OH), which would recognize community land trusts as eligible HOME fund recipients, ease compliance for small properties, and improve the efficiency of program funding.
H.R. 7344, the “Affordable Housing Supply Chain Clarity Act”, or Section 201(l), introduced by Rep. Sylvia Garcia (D-TX), which would direct HUD to review, issue guidance, and report to Congress on the applicability of Build America, Buy America Act with respect to the HOME Program.
H.R. 5077, the “Strengthening Housing Supply Act”, or Section 202(b), introduced by Ranking Member Maxine Waters (D-CA), which would increase flexibility for states and local governments by allowing Community Development Block Grants (CDBG) funds to be used to develop affordable housing.
H.R. 6773, the “Databases of Publicly Owned Land Act”, or Section 202(c), introduced by Ranking Member Maxine Waters (D-CA), which would require CDBG recipients to develop and maintain a public database of undeveloped, publicly owned land to aid housing developers.
H.R. 6768, the “Housing Our Communities Act”, or Section 203, introduced by Rep. Rashida Tlaib (D-MI), which would establish a competitive HUD grant pilot program to support regional planning and implementation of affordable housing activities.
H.R. 1981, the “Choice in Affordable Housing Act”, or Section 205, introduced by Rep. Emanuel Cleaver (D-MO), which would make several improvements to streamline the Housing Choice Voucher (HCV) program, including reducing HUD inspection delays, allowing new landlords to request pre-inspections to increase access to housing for voucher holders, and encouraging landlord participation.
H.R. 6774, the “FHA Small Dollar Mortgages Act”, or Section 302, introduced by Ranking Member Maxine Waters (D-CA), which would require the Federal Housing Administration (FHA) to establish a pilot program to offer small-dollar mortgages under $100,000 to interested homebuyers.
H.R. 965, the “Housing Unhoused Disabled Veterans Act”, or Section 401, introduced by Rep. Brad Sherman (D-CA), which would help more veterans experiencing homelessness access housing.
H.R. 4385, the “Helping More Families Save Act”, or Section 404, introduced by Rep. Ritchie Torres (D-NY), which would establish a pilot program under HUD’s Family Self-Sufficiency (FSS) initiative to enroll families living in public housing or receiving rental assistance in an escrow savings program which deposit increases in rent due to income growth into an interest-bearing account on their behalf.
H.R. 6726, the “Reforms to Housing Counseling and Financial Literacy Program Act”, or Section 405, introduced by Rep. David Scott (D-GA), which would enhance the quality, accountability and effectiveness of housing counseling services and fund HUD-approved housing counseling of certain borrowers who are behind on their payments.
H.R. 5889, the “Eviction Helpline Act”, or Section 406, introduced by Rep. Ayanna Pressley (D-MA), which would require HUD to establish and promote a national eviction hotline to support tenants of federally assisted rental dwelling units.
H.R. 638, the “Housing Temperature Safety Act”, or Section 407, introduced by Rep. Ritchie Torres (D-NY), which would require HUD to establish a pilot program to award grants to public housing authorities (PHAs) and owners of federally assisted rental housing to ensure rental units comply with temperature requirements.
Section 408(c) which would require the Government Accountability Office (GAO) to study key provisions in H.R. 1640, the “HEIRS Act”, introduced by Rep. Nikema Williams (D-GA) including to define residential heirs property, review model state law, identify resources for impacted owners and heirs, and offer recommendations.
H.R. 6344, the “CAT Act”, introduced by Rep. Ritchie Torres (D-NY), which is incorporated in part in Section 502, and would require covered PHAs to publicly disclose contracts.
H.R. 6825, introduced by Rep. Nydia Velázquez (D-NY), which is also part of Section 502, would require the HUD Inspector General to analyze the actions, compliance, and physical housing conditions of certain PHAs, their appointed receiver or Federal monitor, and related private sector housing development partners.
Additionally, H.R. 6644 includes 12 housing bills that House Democrats co-led, including:
H.R. 2840, the “Housing Supply Frameworks Act,” or Section 101, co-led by Rep. Brittany Pettersen (D-CO), which would direct HUD to develop and publish best practices for state and local zoning frameworks, helping communities identify and overcome barriers to housing development and increase housing production for all income levels.
H.R. 4660, the “Unlocking Housing Supply Through Streamlined and Modernized Reviews Act”, or Section 104(a), co-led by Rep. Sam Liccardo (D-CA), which would streamline the National Environmental Policy Act (NEPA) by excluding housing-related activities such as small-scale construction, rehabilitation, and infill development.
H.R. 4989, the “Streamlining Rural Housing Act”, or Section 105(a), co-led by Rep. Brittany Pettersen (D-CO), which would direct HUD and USDA to coordinate on joint environmental reviews for housing projects funded by both agencies.
H.R. 6132, the “Housing Affordability Act”, or Section 106, co-led by Rep. Ritchie Torres (D-NY), which would update the statutory maximum loan limits for FHA mortgage insurance for residential multifamily construction to reflect current costs and provide for the use of an inflation adjustment formula that aligns with housing construction costs for setting those limits moving forward;
H.R. 4659, the “Identifying Regulatory Barriers to Housing Supply Act,” or Section 202(a), co-led by Rep. Brittany Pettersen (D-CO), which would require localities that receive Community Development Block Grant (CDBG) funding to submit plans every 5 years to track and report on the implementation of certain land use policies.
Section 204, which includes four provisions from H.R. 4957, the “Rural Housing Service Reform Act”, co-led by Rep. Emanuel Cleaver (D-MO), which would expand the eligibility of USDA’s Section 504(a) Home Repair Program to include low-income homeowners to allow more funds to be used and would raise the current cap of loans secured by only a promissory note. It would also require Rural Housing Services (RHS) to annually report on the health of its programs, report on how to shorten the application processing times for its Section 502 and 504 programs and require GAO to report on the status of the use of technology at RHS.
H.R. 6293, the “Housing Supply Expansion Act”, or Section 301(a-f), co-led by Rep. Emanuel Cleaver (D-MO), Rep. Scott Peters (D-CA), and Rep. Luis Correa (D-CA), which would amend the federal definition of “manufactured home” to allow housing built with or without a permanent chassis. It would also require updated standards and state certifications so manufactured homes without a chassis are treated on par with traditional HUD-code homes for financing, sale, installation and title.
H.R. 5263, or Section 301(g), co-led by Rep. Emanuel Cleaver (D-MO) which would establish HUD as the primary federal authority for establishing and approving any federal manufactured home construction and safety standards, including standards related to a manufactured home’s construction, design, energy efficiency, and performance.
H.R. 5913, the “Community Investment and Prosperity Act”, or Section 303, co-led by Rep. Joyce Beatty (D-OH), which would increase the public welfare investment cap for the Office of the Comptroller of the Currency (OCC) and the Federal Reserve from 15% to 20% enhancing the capacity of banks to make investments in affordable housing and would require the OCC and Federal Reserve to study and publish routine reports on how these investments are made and used to support communities.
H.R. 2362, the “VA Home Loan Awareness Act”, or Section 402, co-led by Rep. Al Green (D-TX), Rep. Brittany Pettersen (D-CO), Rep. Joyce Beatty (D-OH), Rep. Josh Gottheimer (D-NJ), Rep. Josh Harder (D-CA), and Rep. Deborah K. Ross (D-NC), which would require the Uniform Residential Loan Application used by most mortgage lenders to include a disclosure informing military veterans that they may be eligible for a Department of Veteran Affairs (VA) home loan.
H.R. 5429, the “HUD-USDA-VA Interagency Coordination Act”, or Section 403, co-led by Rep. Joyce Beatty (OH-3), which would direct HUD, USDA, and VA to enter into a memorandum of understanding to strengthen interagency coordination regarding housing-related research, data, and market information.
H.R. 3774, the “HUD Accountability Act”, or Section 501, co-led by Rep. Emanuel Cleaver (D-MO), which would require the HUD Secretary to testify before Congress on an annual basis regarding the Department’s operations, oversight activities, and program performance.
In addition to housing provisions, H.R. 6644 also includes provisions relating to supporting community financial institutions that help meet the housing needs for their local communities. This includes 5 provisions led by Committee Democrats:
H.R. 975, the “Credit Union Board Modernization Act,” or Section 605, introduced by Congressman Juan Vargas, would reduce board meeting requirements for well-managed credit unions, aligning Federal standards with similar credit union board requirements for many states. This provision has passed the House several times with broad bipartisan support.
H.R. 3716, the “Systemic Risk Authority Transparency Act,” or Section 606, introduced by Rep. Al Green (D-TX), would require Government Accountability Office and bank regulators to issue reports if regulators invoke the systemic risk exception, as they did to manage the failures of Silicon Valley Bank and Signature Bank in 2023. These reports would provide Congress and the public an analysis to identify the causes of the bank failures, including any management, supervisory, or regulatory shortcomings.
H.R. 3709, the “Advancing the Mentor-Protégé Program for Small Financial Institutions Act,” or Section 609, introduced by Rep. Joyce Beatty (D-OH), would codify the Treasury Department’s program to encourage partnerships and allow big banks to serve as mentors to community financial institutions, including CDFIs and MDIs. This has passed the House with broad bipartisan support.
H.R. 6556, the “Failing Bank Acquisition Fairness Act,” or Section 608, introduced by Rep. Stephen Lynch (D-MA), would promote competition in banking by narrowing the exception that allows a megabank with more than 10% of U.S. total deposits or liabilities to bid to acquire a failing bank. Specifically, this bill would prevent such megabanks from bidding for a failed bank if there are other eligible bids from other well-capitalized and well-managed banks that meet FDIC’s typical requirements. Only when there are no such bids would these megabanks be permitted to acquire a failing bank.
H.R. 4544, the “American Access to Banking Act,” or Section 610, introduced by Ranking Member Maxine Waters (D-CA), would promote the formation of new community banks and credit unions (known as de novo depository institutions), including new CDFIs, MDIs, and rural institutions to expand financial access in underserved communities. Federal banking and credit union agencies would be required to streamline application processes, minimize duplicative data requests, and review capital-raising challenges de novos face. It further requires the development of outreach and education programs, and Federal regulator engagement with stakeholders as well as coordination with State regulators to support them in chartering de novo firms.
Additionally, 4 community financial institution bills that Congressional Democrats co-led include:
H.R. 3234, the “Keeping Deposits Local Act,” or Section 602, co-led by Rep. Joyce Beatty (D-OH), would increase the amount of reciprocal deposits exempted from certain restrictions, utilizing a tiered approach based on a bank’s size that favors smaller banks. Reciprocal deposits are part of a network run by a third-party where a bank provides more insurance for a customer, including small businesses, that is greater than $250,000 (the current FDIC deposit insurance cap). The funds are distributed to other banks in the network, and those banks reciprocate and provide the originating bank matching funds so it may use the full amount of the deposit for lending or other purposes. When paired with deposit insurance reforms proposed by Ranking Member Maxine Waters and supported by Vice President Vance, Treasury Secretary Bessent, and other Republicans and Democrats in Congress, these type of reforms would provide a comprehensive update to the deposit insurance framework for the benefit of community financial institutions (including CDFIs and MDIs), small businesses, and their workers.
H.R. 6547, the “Least Cost Exception Act,” or Section 607, co-led by Rep. Bill Foster (D-IL), would promote competition in banking by allowing the FDIC to waive the least cost resolution test when selecting a bid for a failed bank if the FDIC and Federal Reserve make a determination that risks to the FDIC’s Deposit Insurance Fund are outweighed by limiting the concentration in Global Systemically Important Banks (G-SIBs) if the FDIC chooses a bid from a bank other than a G-SIB. The alternative bid will need to meet certain criteria, including agreeing to pay the difference of their bid and that of a G-SIB, subject to discounts and other criteria established by the FDIC by rule.
H.R. 4437, the“Supervisory Modifications for Appropriate Risk-Based Testing (SMART) Act,” or Section 603, co-led by Rep. Bill Foster (D-IL), would provide exam relief for well-managed and well-capitalized banks and credit unions with under $6 billion in total assets. The bill includes an amendment offered by Ranking Member Maxine Waters that would further ensure well-experienced examiners lead these exams and requirements to improve communication between examiners and regulated entities.
H.R. 4478, the“Tailored Regulatory Updates for Supervisory Testing (TRUST) Act,” or Section 604, co-led by Rep. Ritchie Torres (D-NY), would increase the asset threshold from $3 billion to $6 billion for well-capitalized and well-managed banks with less than that amount in total assets to qualify for an 18-month examination cycle instead of a 12-month exam.
