What The New Housing Law Means For The Rental Industry

The Big Picture

The 21st Century ROAD to Housing Act became law on July 11, 2026, marking an incredible victory for the rental housing industry and representing the largest federal action on housing policy in decades. In total, the new law contains dozens of provisions aimed at increasing housing supply, reducing regulatory barriers, modernizing federal housing programs and encouraging state and local governments to adopt policies that support new housing development. 

Many of the law’s housing provisions align with longstanding National Apartment Association (NAA) policy priorities and advocacy efforts, aimed at boosting housing supply, easing affordability challenges and improving the effectiveness of federal housing programs. 

Below are some of the most significant provisions for the rental housing industry. 

Key NAA Priorities 

Sec. 107. Housing Supply Frameworks Act. 

• What it does: Directs the U.S. Department of Housing and Urban Development (HUD) to research, develop and publish a set of nonbinding best practice recommendations and guidelines to assist state and local communities in adopting modern local and state zoning frameworks that support the production of adequate housing options at every income level.  
• Why it matters: The zoning and land-use reforms outlined in the section would reduce barriers to rental housing development, including higher density allowances, increased by-right uses, reduced parking requirements, streamlined permitting processes, incentivized transit-oriented development and more. 

Sec. 209. Accelerating Home Building Act. 

• What it does: Authorizes HUD to award grants to support localities, including tribes, in developing and adopting pre-reviewed housing designs. Designs are intended for use in mixed-income housing and apply to low and mid-rise housing with 25 or fewer units. At least ten percent of the annual funding pool is reserved for rural areas, and repayment may be required five years after receiving a grant if designs have not been adopted. Funding cannot be used for construction, alteration or repairs. 
• Why it matters: By supporting pre-reviewed designs, the program seeks to reduce regulatory delays in permitting and help projects move faster through approvals, ultimately facilitating more efficient housing development.  

Sec. 405. Choice in Affordable Housing Act (Inspections Provisions) 

• What it does: This section reduces duplicative inspections by allowing inspections performed within the last 12 months to be valid across Low-Income Housing Tax Credit (LIHTC)-financed, HOME Investment Partnerships Program (HOME) and U.S. Department of Agriculture (USDA) Rural Housing Service properties. Furthermore, it permits HUD to authorize virtual inspections for properties in rural areas. This section also authorizes early inspections for new housing providers before a unit is selected by an assisted resident. 
• Why it matters: Allowing an inspection to cover multiple federal housing programs will reduce wait-times and put families into affordable housing sooner. This reduced administrative burden will save time and resources while preserving housing quality standards. Virtual inspections will provide relief to small-market operators in rural areas who previously have dealt with inspection delays. Additionally, early inspections will approve units while they are being marketed, reducing lease-up delays. 

Sec. 501. HOME Investment Partnerships Reauthorization and Reform Act. 

• What it does: Reauthorizes and modernizes the HOME program to improve administration and support more housing construction. Certain jurisdictions now have additional options to utilize HOME funds in support of infrastructure like water and sewer lines, sidewalks and roads that support qualifying housing developments. Several small-scale projects will also now be exempt from many costly environmental review requirements, and other duplicative reviews will be removed.  
• Why it matters: HOME remains a vital tool for increasing the supply of affordable housing. This act streamlines the program to reduce its overall administrative burden and promote the efficient use of HOME funds. Overall, this act allows HOME funds to be used for more housing-related activities and improves the feasibility of new development. 

Additional Pro-Housing Policies

Sec. 102. Federal guidelines for point-access block buildings. 

• What it does: Directs HUD to develop model code guidance for point-access block residential buildings, a type of single-stair residential building which is no greater than six stories. These guidelines are directed to discuss fire safety, construction costs and affordability, flexibility for diverse consumer needs, examples of code language from the local to international level and more. HUD may also establish a grant for pilot programs that evaluate or demonstrate “the safety, feasibility, or cost-effectiveness” of point-access block residential buildings. 
• Why it matters: These guidelines, and the model language that will eventually be provided, will assist state and local lawmakers in developing informed point-access block building provisions in their regulations. 

Sec. 201. Increasing housing in opportunity zones. 

• What it does: Allows HUD to give additional weight in competitive housing grant programs to projects located in, or that directly benefit, federally designated Opportunity Zones. The preference can apply to grants supporting housing construction, rehabilitation, preservation or modification. 
• Why it matters: The provision is intended to encourage greater housing investment and development in economically distressed communities by making Opportunity Zone projects more competitive for federal funding. By leveraging existing HUD grant programs, it could help attract additional public and private capital to support housing production and preservation without creating new mandates on housing providers. 

Sec. 202. Whole-Home Repairs Act. 

• What it does: Authorizes a HUD pilot grant program, administered by states or localities, to fund whole-home repairs for certain low-income homeowners and small rental owners, defined as owning fewer than 10 properties, no more than 25 total units and with a majority of affordable units. Homeowners receive grants, while rental providers get access to loans which may be forgiven to use on repairs and improvements. The program will run through October 1, 2031. 
• Why it matters: The program aims to preserve and improve existing housing stock, including rental housing. Property owners renting to residents who are not already under other rental assistance programs are subject to certain requirements, including rent increase limits (capped at five percent or the change in inflation, whichever is lower, for at least three years after completion of repairs) and other resident protections such as lease extensions requirements with specified exceptions. 

Sec. 204. Addition of affordable housing construction as an eligible activity. 

• What it does: Explicitly allows Community Development Block Grant (CDBG) funding to be utilized for the construction of affordable housing under CDBG funding with a cap of 20 percent of the amounts allocated to the recipient. 
• Why it matters: The new flexibilities in this law will allow CDBG recipients to allocate their funding to directly finance new affordable housing construction.  

Sec. 206. Unlocking Housing Supply Through Streamlined and Modernized Reviews Act. 

• What it does: Directs HUD to streamline environmental reviews for housing related activities by expanding exemptions and categorical exclusions under HUD’s environmental review regulations. It allows many routine and lower-impact activities, such as rental assistance, small-scale rehab, predevelopment work and limited new construction, to move forward more quickly with reduced regulatory burden.  
• Why it matters: The provision prioritizes infill development and smaller housing projects, including office-to-residential conversions, to accelerate redevelopment of underutilized sites. HUD must also report reductions in review times and costs. 

Sec. 211. Housing Affordability Act. 

• What it does: This section significantly increases FHA multifamily loan limits across several programs to better reflect current construction costs and market conditions, while establishing a new index-based approach to adjust limits annually.  
• Why it matters: The updates are intended to improve the feasibility of financing new and existing multifamily housing developments. The provision also preserves HUD’s authority to adjust for high-cost areas and requires a study on the impacts of higher loan limits, including effects on lending volume, housing supply and costs. 

Sec. 213. Build Now Act. 

• What it does: Incentivizes cities and counties to increase housing production by increasing or decreasing CDBG funding based on a jurisdiction's housing growth improvement rate over the preceding five years relative to other eligible recipients. Jurisdictions with a housing growth rate of at least four percent will automatically receive increased funding. This law will go into effect after three years and expire in 2043. 
• Why it matters: This “carrot and stick” approach will help incentivize communities to find new ways to increase housing supply and will discourage exclusionary zoning, permitting delays, arbitrary barriers and other policies that limit supply. 

Sec. 505. New Moving to Work cohort. 

• What it does: Authorizes HUD to create a new cohort of 25 Moving to Work (MTW) designated Public Housing Agencies (PHAs) named the “Economic Opportunity and Pathways to Independence Cohort.” MTW demonstration gives PHAs flexibility to use approved waivers of HCV and public housing programs regulations. The bill also allows HUD to consider policy options for positive rental payment reporting to credit bureaus with resident consent. 
• Why it matters: The PHAs in this cohort may explore new administrative and programmatic flexibility to improve the HCV program’s effectiveness. Participating PHAs are required to publicize data on eviction rates, turnover, waitlist length, average wait times and more. HUD will use this data to provide legislative recommendations to improve the HCV program. Furthermore, positive rental payment reporting may strengthen payment behavior in residents and reduce late payments.  

Advocacy In Action 

This legislative achievement represents a major victory for the rental housing industry and reflects extensive efforts by NAA members, our affiliate network and industry partners to advance bipartisan solutions that increase housing supply and improve affordability nationwide. 

Many of the provisions included in the final law align with longstanding industry priorities that are a direct result of consistent industry engagement and a unified advocacy effort. In March, more than 800 rental housing professionals gathered in Washington, D.C. to hold more than 300 meetings on Capitol Hill in one single day. Their efforts helped encourage lawmakers to eventually strike a proposed forced sale requirement for build-to-rent (BTR) housing, a provision that would have ultimately removed an important and flexible housing option for American families. Importantly, that provision was not included in the final law.

NAA sincerely appreciates the extensive efforts of the Congressional champions of this bill in Congress. NAA President and CEO Bob Pinnegar sent a thank you letter to key leaders, including House Financial Services Committee Chair French Hill (R-Ark.-2), Ranking Member Maxine Waters (D-Calif.-43), House Subcommittee on Housing and Insurance Chair Mike Flood (R-Neb.-1), Ranking Member Emanuel Cleaver (D-Mo.-5), Senate Banking Chair Tim Scott (R-S.C.) and Ranking Member Elizabeth Waren ( D-Mass.). 

What’s Next

NAA looks forward to continuing its work with policymakers and federal agencies to support effective implementation of these provisions and advance policies that expand housing opportunities nationwide. On July 14, NAA and industry coalition partners sent a letter to the U.S. Department of Treasury requesting a technical clarification as the law begins to be implemented.

Stay tuned for additional reporting on the implementation of the new housing law. For more timely updates on the industry’s advocacy and legal news, register for NAA’s monthly Advocacy and Legal Webinar (ALW) series and tune in every third Wednesday of the month at 2 pm ET. This webinar is exclusively for NAA members and affiliate partners.