What to know about the Senate affordable housing bill

A Senate committee approved a major housing bill this week, with a range of provisions that could make it easier for people to buy a home.

On Tuesday, the Senate Committee on Banking, Housing, and Urban Affairs unanimously voted to advance the Renewing Opportunity in the American Dream to Housing Act of 2025, which aims to increase the supply of affordable housing.

The bill sponsored by Sen. Tim Scott, R-S.C., chairman of the committee, and Sen. Elizabeth Warren, D-Mass., a ranking member, is the first bipartisan markup for housing in over a decade. 

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The bill has been released to the Senate floor, but it has not yet been scheduled for debate.

Here’s what renters and home buyers need to know about the bill.

According to its text, the ROAD to Housing Act of 2025 aims to boost the country’s housing supply, improve affordability, help reduce homelessness, expand access to homeownership, increase oversight and efficiency of federal regulations and housing programs.

The housing market has been increasingly unaffordable for many Americans. The median sale price in June was $435,000 — a record high for the month, according to the National Association of Realtors. Interest rates have also remained elevated, keeping sellers from listing their homes and potential buyers on the sidelines.

“Many households aren’t even forming because they can’t afford to own or even rent,” said Mark Zandi, chief economist at Moody’s Analytics. 

In 2023, half of renters in the U.S., or 22.6 million tenants, were “cost burdened,” meaning they were spending more than 30% of their income on rent and utilities, according to a recent report by the Joint Center for Housing Studies at Harvard University.

While industry groups and local elected officials have expressed support for the housing package, it’s “not a panacea,” said Alys Cohen, director of federal housing advocacy at the National Consumer Law Center. 

What’s more, the bulk of the provisions are aimed at making the process of building more housing easier for local governments, changes that could eventually add more supply and ease prices. Still, some provisions in the bill directly impact individuals and communities.

“It’s a series of measures, some of which are bold, some of which are modest, some of which will be helpful, some of which may be harmful. The hope is that overall, it’s a significant step forward,” Cohen said.

The ROAD to Housing Act is “a potpourri of different efforts” to increase the supply of housing, Zandi said. 

A provision in the housing package would simplify the construction of manufactured housing by eliminating the federal requirement of a permanent chassis, or foundation, and expanding lending and financing options.

Formerly known as mobile homes, manufactured housing consists of factory-built homes that are transported in one or more sections. As of now, it must be installed onto a permanent chassis, according to the Department of Housing and Urban Development.

Such homes are more affordable to make and sell, and are popular in the South, “where the housing shortages are particularly acute,” said Zandi. 

With a few changes in lending and regulation, “we might see more manufactured housing, and that could be very, very helpful for improving homeownership,” he said.

Other provisions could impact individuals more directly, said Cohen. 

For example, the bill permanently authorizes the Community Development Block Grant Disaster Recovery program by the HUD, which provides resources to states, tribes and communities to rebuild housing after a natural disaster. 

Individuals can get aid from the Federal Emergency Management Agency after a disaster, but if they need funds to rebuild, the CDBG-DR program provides the necessary funds. 

As of now, Congress has to authorize it regularly, or after a disaster, said Cohen.

It is “one of the most significant accomplishments” of the package, said Cohen.

Another provision helps low-income and rural homeowners who have USDA direct loan mortgages to qualify for financial relief. 

When people have mortgages backed by the government, if they need a payment reduction on their mortgage, one of the ways to do that is by extending the term of the loan, said Cohen. Currently, direct loan borrowers with USDA loans do not have that option. 

“This bill fixes that problem,” she said. 

However, it remains unclear if the bill in its totality “will meet the needs of many of the people who need it the most,” such as “underserved communities and households of color,” Cohen said.