Congress Reaches Compromise on Major Housing Reform Bill

Congress appears poised to give a final nod to a comprehensive housing reform package after months of stalled progress, setting the stage for President Donald Trump to sign it.

The Senate voted 87-8 Tuesday night to consider the House’s amended version of the 21st Century Road to Housing Act. The two chambers have agreed on the language of the dozens of housing provisions in the bill after months of negotiations. The House and Senate will likely hold a final vote in the coming days.

The 45 provisions in the final version of the bill includes priorities of both chambers and both parties, Sen. Elizabeth Warren (D-Massachusetts) said on the Senate floor. That includes updates to the Community Development Block Grant program, the institutional investor ban, and several funded programs.

“There is so much in this bill, each piece directing us toward increasing the supply of housing, bringing down the cost,” Warren said.

Procedurally, the Senate would hold a final vote and the House would concur one last time to the Senate changes before Trump signs it. But the House has overwhelmingly supported the bill. And this version has the sign-off from the leaders of both chambers’ financial committees.

That includes House Financial Services Committee Chair Rep. French Hill (R-Arkansas) and Ranking Member Maxine Waters (D-California); and Senate Banking, Housing, and Urban Affairs Committee Chair Sen. Tim Scott (R-South Carolina) and Ranking Member, Warren.

Compromises all around

The newest language of the 381-page bill irons out some final sticking points between the two chambers. It ends up as a mixed bag for all sides.

The Senate first passed its bill in February and the House followed with a smaller version of the bill in March. That led to months of negotiations to line up both versions of the bill. The House gave its final approval in May.

The new bill adds some provisions as a nod to House Republicans. That includes nine community banking measures the House pushed, Hill said.

This new version of the bill also adds a three-year sunset on the Community Development Block Grant-Disaster Recovery program. The Senate wanted to see it codified long-term, but the House did not, and attempted to remove it entirely from the bill.

In turn, the House kept several pilot programs for the U.S. Department of Housing and Urban Development, which would give grants to state and local governments. Those will support whole-home repairs programs and office and commercial space conversions to residential use.

Trump has been a proponent of the investor ban, having signed an executive order on the matter earlier this year. But he didn’t strongly weigh in on either side of the main sticking points, including whether build-for-rent investors would have to sell their properties.

“Bipartisan, bicameral legislating is never easy—but progress matters,” Hill said after the bill passed.

Housing groups applaud Senate vote

The Senate vote on Tuesday drew a chorus of cheers from from housing policy advocates and industry groups who have pressed for progress on the legislation.

“This landmark legislation would expand housing opportunities for buyers and renters, strengthen homeownership, and help tackle the affordability challenges facing communities nationwide. It’s time for Congress to move this historic housing package across the finish line,” said Bill Owens, chairman of the National Association of Home Builders.

In a statement, the American Land Title Association CEO Chris Morton said the bill reflected years of work in Congress.

“ALTA appreciates the leadership of Congress and the Trump administration in tackling housing affordability,” Morton said. “the title insurance industry looks forward to continuing to work with policymakers to advance commonsense housing solutions that promote and protect the American dream of homeownership.”

The vote coincides with the National Association of Realtors’ annual Legislative Meetings conference in Washington, DC. NAR has pressed for the bill to move along, piggy-backing on the affordability-focused talking points of both parties.

Shannon McGahn, NAR’s Chief Advocacy Officer, said at the conference on Sunday that Congress this year has a heightened awareness about housing issues. NAR conducted about 50 meetings with different leaders, and found them more receptive to home affordability issues, she said.

“We want to make sure the next generation has access to even more opportunity to create that wealth and to have that solid footing,” McGahn told the audience. “This is a nationwide conversation that is happening at the local, state and federal level. I haven’t seen anything like this since the 2008 financial crisis.”