ROAD to Housing Act of 2025

Improved Housing Counseling and Foreclosure Mitigation: The bill expands opportunities for borrowers who are delinquent on payments to access housing counseling, with costs covered by the Mutual Mortgage Insurance Fund (Sec. 101).

Increased Housing in Opportunity Zones: The Secretary may give additional weight to competitive grants for applicants located in or serving qualified opportunity zones (Sec. 202).

Support for Local Zoning Reforms: The bill directs the creation of guidelines and best practices to help state and local governments reduce regulatory barriers, such as parking minimums and lot size requirements (Sec. 203).

Home Repairs for Homeowners and Landlords: A pilot program would provide grants to homeowners and forgivable loans to landlords to fund repairs related to accessibility, safety, and energy efficiency (Sec. 204).

Financial Incentives for High-Growth Areas: The "Build Now Act" adjusts Community Development Block Grant allocations to provide bonuses to recipients that show significant improvement in housing supply growth (Sec. 206).

Streamlined Environmental Reviews: The bill reclassifies certain housing-related activities to expand and streamline environmental review processes (Sec. 208).

Expansion of Manufactured and Modular Housing: The bill seeks to remove barriers to manufactured housing by allowing homes without permanent chassis and directs reviews of financing barriers for modular homes (Sec. 301, Sec. 302).

Modernized Loan Limits: The act increases limits for various mortgage insurance programs to help finance construction and repairs (Sec. 303).

Preservation of Manufactured Housing Communities: A new grant program is established to fund infrastructure, repairs, and resident health and safety activities in eligible manufactured housing communities (Sec. 304 and Section 3, paragraph (d)(1)(ii)).

Improved Living Conditions for Manufactured Housing Communities: Grants can be used to improve living conditions through the addition or enhancement of shared spaces like community centers or recreational areas (Section 3, paragraph (d)(1)(ii)).

Increased Mortgage Accessibility: The bill encourages lending for small dollar mortgages by allowing for different compensation practices and evaluating existing limits on points and fees (Section s 401 and 402).

Enhanced Appraisal Industry Workforce: The bill creates a path for State credentialed trainee appraisers to assist certified appraisors and provides grants for workforce training and recruiting talent (Section 403).

Financial Stability for Families in Housing Assistance: An escrow expansion pilot program allows covered families to establish interest-bearing accounts to save money as their earned income increases (Section 404, paragraph (3)).

Disaster Recovery Support: The establishment of a Long-Term Disaster Recovery Fund provides grants for disaster relief, long-term recovery, and the restoration of housing and infrastructure (Section 501, paragraph (a)(1) and (c)(3)).

Preservation of Rural Housing: A new program helps preserve and revitalize multifamily rental housing projects through loan restructuring and the renewal of rental assistance contracts (Section 503, paragraph (c) and (d)).

Rural Community Development: The establishment of the Rural Community Development Initiative provides grants to help develop housing, community facilities, and economic development in rural areas (Section (b)).

Increased Flexibility for Renters: The creation of a process to adjust voucher amounts based on interim reviews—such as changes in income, family composition, or rental rates—allows for more responsive financial assistance (Section (k)(2)).

Improved Housing Stability for Rural Residents: Low-income households in properties financed by certain loans or grants may become eligible for rural housing vouchers following foreclosure, prepayment, or mortgage maturity (Section (l)).

Support for Homeowners: The ability to refinance or modify loan periods for up to 40 years provides more flexibility for long-term housing stability (Section (o)(1)(B)).

Expanded Opportunities for Homeowners: The inclusion of accessory dwelling units in loan guarantees allows homeowners to create additional living spaces and utilize rental income (Section (r)).

Enhanced Support for Veterans: The VA Home Loan Awareness Act requires a disclaimer on loan applications to inform service members they may qualify for VA home loans (Section 601(a)).

Disability Benefit Protections: Veterans receiving certain disability benefits will have those benefits excluded when determining income eligibility for specific housing assistance programs (Section 603(a)(1)).

Consumer Protections in Appraisals: The bill establishes a review and resolution procedure for consumers to request a reconsideration of an appraisal value, which can include a new appraisal at the creditor's expense if errors or discrimination are found (Section 705(a)(2)).

Potential Loss of Housing Counseling Capacity: The Secretary may take actions against counselors deemed incompetent, which could result in a loss of local counseling services if not carefully managed (Sec. 101).

Risk of Reduced Funding for Certain Jurisdictions: Under the "Build Now Act," community development allocations may be decreased by 10 percent for jurisdictions that fall below the median housing growth improvement rate (Sec. 206).

Requirement for Landlord Compliance: To receive loans for repairs, landlords must agree to specific restrictions, such as capping annual rent increases at 5 percent of base rent or inflation (Sec. 204).

Restrictions on Housing Replacement: Grants may not be used for the rehabilitation or modernization of manufactured housing units that were built before June 15, 1976 (Section 3, paragraph (d)(2)(A)).

Liabilities for Appraisers: While trainees can assist, a State certified appraiser remains liable for the final work performed with the assistance of a trainee (Section 403, paragraph (c)(3)).

Limitations on Escrow Withdrawals: Under the escrow pilot program, families may be restricted from withdrawing funds for up to 5 years after the account is established, unless they are meeting specific self-sufficiency goals or facing specific circumstances (Section 404, paragraph (3)(C)).

Risk of Displacement in Disaster Areas: Grant funds used for disaster recovery may involve activities that require relocation, which is subject to specific policies and potential displacement (Section 501, paragraph (c)(7)(8)).

Program Restrictions for Small-Scale Housing: Certain tenant selection requirements are waived for owners of small-scale housing, which consists of not more than 4 rental units (Section 502, paragraph (d)(1)(B)).

Financial Burdens for Intermediaries: Eligible intermediaries receiving grants must provide matching funds from other sources that are at least equal to the amount of the grant (Section (c) and (d)(1)).

Strict Recertification Requirements: Tenants participating in annual reviews are required to recertify their family composition and income to ensure they do not exceed 80 percent of the area median income (Section (k)(3)(A)).

Potential Risks for Public Housing Agencies: Agencies participating in the "Moving to Work" demonstration may face removal from the cohort if they fail to comply with established requirements (Section (f)(3)).

Restrictions on Certain Housing Projects: For the "Moving to Work" demonstration, the Secretary's authority to grant waivers is strictly limited, which may restrict the flexibility of participating agencies (Section (c)(1)).