Housing affordability package advances in Congress

House lawmakers on Monday approved a bill aimed at improving housing affordability by giving incentives to builders and local governments to increase construction by reducing regulations on homebuilding.

The legislation received strong bipartisan support, with the House voting 390-9 in favor. A similar Senate equivalent was passed by bipartisan votes last year. That, along with President Donald Trump’s focus on housing affordability, means the measure has momentum to become law before the end of the year.

R-Neb. “Nothing is more personal to Americans than the opportunity to own a home,” his representative Mike Flood told reporters Monday. “When you ask people what is central to their goals in life, you see mom and dad working 55 hours a week and doing overtime and all that other stuff… the idea is, how do we get into a home?”

The bill includes many provisions, including housing reduction and environmental regulations regarding home construction. Local communities can receive grants to make it easier for builders by streamlining construction or housing by submitting pre-vetted housing designs. The Department of Housing and Urban Development will also develop best practices for zoning rules.

Definitions for manufactured and modular housing will be updated to encourage the number of factory-built homes that can be built in a much shorter time compared to more traditional home building methods.

Community banks will also receive a boost through the bill. One of the changes would allow banks to take more escrow and mutual deposits, which could help banks provide more mortgages to potential homeowners. Other changes would make it easier to form new banks and change the way the FDIC views banking mergers.

The Senate bill does not include many of the provisions related to community banks and would create more programs compared to the House bill. The Senate passed his package last year as part of a larger defense measure, but the bill was rejected by both Senate Banking, Housing and Urban Affairs Chairman Tim Scott, R.S.C. as well as the committee’s top Democrat, Sen. It has received significant bipartisan support as a standalone measure, including support from Elizabeth Warren, D-Mass.

The bills received an unusually high level of bipartisan support. The Senate bill was unanimously removed from committee, supported by all 24 senators. A House panel advanced his bill 50-1 in December.

Rep. Maxine Waters, D-Calif., who sponsored the bill, warned that the legislation would not be effective if housing programs remain underfunded.

“Policy reforms alone are not enough,” Waters said. “These programs need to be funded to work.”

House Financial Services Chairman French Hill, R-Ark., said getting a housing bill across the finish line was a “common goal” between him and Scott. Hill said he would work with the Senate to see where they have common ground and reach consensus on a bill that could make it to Trump’s desk.

Flood said he is optimistic about getting passage this year.

“We’re at a point where something huge needs to be done here, and everyone wants to participate,” he said. “That doesn’t mean we’re pushing an agenda to convince people of something. The White House has ideas. The Senate has ideas. The House of Representatives has ideas.”

One thing not included in the bill: formalizing Trump’s proposed ban on large investors buying homes. Hill said other lawmakers have introduced bills based on Trump’s idea, which could happen if there is consensus in the Senate and House of Representatives.