Senate Passes Major Housing Bill to Tackle Supply Crisis

The Senate approved a bipartisan bill to boost housing supply, with reforms for zoning, rural housing, and multifamily construction.

October 14, 2025

Nina Dale

The ROAD to Housing Act, passed Oct. 9, aims to increase housing supply through zoning reform, rural housing support, and multifamily development incentives.
The bill encourages local governments to promote housing growth by offering more Community Development Block Grant funds.
It also updates financing rules, like allowing ADU income to qualify for federal loan programs and adjusting FHA loan limits to reflect rising construction costs.

Key Takeaways

A Step Toward Solving the Housing Crisis

On Oct. 9, the Senate passed the ROAD to Housing Act, a major bipartisan effort to address the nation’s housing shortage, as reported by National Association of Home Builders.

The bill focuses on breaking down barriers to construction and making it easier to build new homes.

Notably, the National Association of Home Builders (NAHB) has praised the move. “Building more homes is the only way to ease America’s affordability crisis,” said NAHB Chairman Buddy Hughes.

What’s in the Bill?

The legislation directs hud to partner with builders and local governments to develop best practices for increasing housing production. Additionally, cities and towns that adopt pro-housing policies could receive extra federal funding.

Key provisions include:

Rural rental support: Owners of multifamily properties can continue receiving rural assistance even after their loans mature.
ADU income eligibility: Income from accessory dwelling units can now help borrowers qualify for the Section 502 Guaranteed Loan Program.
Loan transfer flexibility: When a borrower transfers their mortgage, they are no longer held liable.
Updated loan limits: A required review will help FHA loan caps reflect today’s construction costs, encouraging more apartment development.

Why It Matters

This legislation is one of the few recent examples of bipartisan cooperation on housing policy. It addresses long-standing regulatory obstacles and provides new tools for boosting supply.

Moreover, the NAHB notes that regulations can account for nearly 25% of a new home’s cost. By reducing these burdens, the bill could help bring down prices and make housing more accessible.

What’s Next

The bill now moves to the House of Representatives. NAHB and other advocates are urging lawmakers to act quickly.

If approved, President Trump is expected to sign it, paving the way for more targeted policies that support homebuilders, local governments, and future homeowners.