House unveils revised housing package with key county wins

Key Takeaways

On May 13, a revised version of the 21st Century ROAD to Housing Act (H.R. 6644) was introduced in the U.S. House of Representatives, with House floor consideration expected as soon as May 20.  The revised legislation reflects direct feedback from counties and includes several NACo-supported changes that reduce local financial risk and preserve county flexibility in administering housing and community development programs.  

What are the major changes for counties in the House-revised housing package?

Build Now Act changes preserve flexibility for counties

A provision carried over from earlier versions of the legislation, known as the Build Now Act, ties Community Development Block Grant (CDBG) funding to local housing production. Under the framework, eligible CDBG recipients that exceed the median housing growth improvement rate would receive bonus allocations, while jurisdictions falling below the median would face funding reductions to finance those incentives.

Counties have consistently expressed concern that unpredictable funding shifts could undermine long-term community development planning and make it more difficult to leverage CDBG investments for multi-year housing, infrastructure and economic development projects.

The House-amended text makes several important improvements to address these concerns. Specifically, the revised language:

• Caps penalties at $1 million, limiting local fiscal exposure  
• Reduces the sunset period from 15 years to 5 years  
• Expands the emergency declaration exemption window from 1 year to 5 years  

The expanded emergency declaration exemption is particularly important for counties facing recurring natural disasters and climate-related emergencies. In practice, the five-year exemption window is expected to cover many jurisdictions in disaster-prone states such as California and Florida, providing substantially greater operational flexibility for local governments navigating recovery and rebuilding efforts.

Together, these changes represent a meaningful step toward addressing county concerns about long-term mandates, administrative burdens and financial liability under the original Senate proposal.

Institutional investor provisions significantly improved

The House-amended bill also removes several provisions counties and housing stakeholders viewed as overly restrictive for housing production. The revised language:

• Eliminates the divestment requirement for large institutional investors  
• Fully exempts build-to-rent (BTR) developments  
• Fully exempts large, single-parcel rental developments that would otherwise require additional subdividing  

Counties expressed concern that the original language could unintentionally delay or discourage large-scale housing projects that would expand housing supply in local communities. Additionally, the forced sale of BTR properties may result in displacement of tenants unable to afford to purchase their unit. The House-amended provisions help preserve critical development pathways and protect housing access for rental households.

By reducing unnecessary regulatory complexity and maintaining flexibility for certain large-scale developments, the revised language better aligns with county efforts to expand housing availability while supporting responsible community planning and economic development.

Tell Congress: Support counties in the final housing package  

With House floor consideration expected next week, now is the time to make your voice heard. Contact your House representative and urge them to support the House-amended package and the county-backed improvements in the amended bill. NACo will continue working with congressional leaders to ensure counties retain the flexibility needed to address housing shortages and support responsible housing development tailored to local community needs. 

Webinar: What Counties Need to Know

Join NACo next Monday, May 18, for a timely briefing on the revised legislation. This is your opportunity to get up to speed, ask questions directly and learn how you can make a difference as Congress moves toward a final vote. Register HERE.