Housing affordability package set to advance in Congress

The legislation has strong bipartisan support, as does a largely similar Senate counterpart passed last year. That, as well as President Donald Trump‘s focus on housing affordability, means the measure has momentum to become law before the end of the year.

“Nothing’s more personal to Americans than their opportunity to have a home,” Rep. Mike Flood, R-Neb., told reporters on Monday. “When you ask people what is central to their goals in life, mom and dad are working 55 hours a week and overtime and all these other things … the idea is, how do we get into a house?”

The bill includes numerous provisions, including cutting housing and environmental regulations around constructing homes. Local communities could get grants to make it easier for builders by offering pre-reviewed housing designs, streamlining construction or housing. The Department of Housing and Urban Development would also develop best-practices for zoning guidelines.

Definitions around manufactured and modular housing would be updated to encourage more factory-built homes, which can be constructed in a fraction of the time compared to more traditional house-building methods.

Community banks would also get a boost through the bill. One change would allow banks to take more custodial and reciprocal deposits, which could help banks provide more mortgages for potential homeowners. Other changes would make it easier to start new banks and change how the FDIC looks at banking mergers.

The Senate bill doesn’t include many of the provisions on community banks, and would create more programs compared to the House bill. The Senate passed its package last year as part of a larger defense measure, but the bill got significant bipartisan support as a standalone measure, including the backing of both Senate Banking, Housing and Urban Affairs Chair Tim Scott, R-S.C., and the top Democrat on the committee, Sen. Elizabeth Warren, D-Mass.

The bills have received an unusually high degree of bipartisan support. The Senate bill was advanced unanimously out of committee with all 24 senators supporting it. A House panel advanced its bill 50 to 1 in December.

Rep. Maxine Waters, D-Calif., who supported the bill in committee, warned the legislation wouldn’t be effective if housing programs remain underfunded.

“Policy reforms alone are not enough,” Waters said. “These programs must be funded if they are going to work.”

House Financial Services Chair French Hill, R-Ark., said getting a housing bill across the finish line is a “shared goal” between him and Scott. Hill said he will work with the Senate to see where they have common ground and get consensus on a bill that can get to Trump’s desk.

Flood said he is optimistic on getting passage this year.

“We are at a juncture to get something very big done here, and everybody wants to participate,” he said. “This isn’t like we’re pushing an agenda trying to talk people into something. White House has ideas. The Senate has ideas. The House has ideas.”

One thing not in the bill: formalizing Trump’s proposed ban on large investors buying homes. Hill noted other lawmakers have introduced bills building on Trump’s idea and said it could happen if there is a consensus in the Senate and House.