In a move that provides momentum for Congress to enact major housing legislation in early 2026, the House Financial Services Committee this week approved the Housing for the 21st Century Act. This bipartisan housing package — introduced by committee Chairman French Hill (R-Ark.), Ranking Member Maxine Waters (D-Calif.), Rep. Mike Flood (R-Neb.), and Rep. Emanual Cleaver (D-Mo.) — takes much-needed steps toward addressing our nation’s critical lack of housing.

The legislation contains key provisions related to land use and zoning, regulatory reforms and financing tools. It is the House response to the ROAD to Housing Act, legislation passed by the Senate this fall that includes favorable provisions aimed at zoning and land-use policies, and rural and multifamily housing that will stimulate construction of sorely needed housing.

Of note to the housing community, the Housing for the 21st Century Act would:

• Direct the Department of Housing and Urban Development to develop best practices with key stakeholders, such as home builders and developers, to provide state and local governments with an array of options to increase housing production.
• Remove regulatory burdens for infill and mid-sized construction and eliminate time-consuming duplicative review processes under the National Environmental Policy Act.
• Provide reforms to the HOMEInvestment Partnerships Program that will help lower construction costs by allowing builders to source materials from any vendor that provides the best product and pricing.
• Raise multifamily loan limits and index them to the Price Deflator Index of Multifamily Construction. This will better reflect the true cost of construction and help stimulate new apartment construction by making these loans more financially feasible to use.

In addition, the House Financial Services Committee approved the NFIP Extension Act of 2026, which would extend the National Flood Insurance Program’s financing and program through Sept. 30, 2026, and applies this extension retroactively to Sept. 30, 2025.

NAHB will continue to work with republican and democratic lawmakers in both chambers of Congress to pass a bicameral, bipartisan major housing package in early 2026 to reduce obstacles to help builders build more attainable, affordable housing.