Trump says he won’t sign ROAD Act, which could automatically become law tonight

The news comes after Trump delayed a signing ceremony for the bill on June 24, instead insisting that Congress first pass the SAVE America Act, a bill aimed at strengthening voter identification and registration requirements. In the days after the cancellation, Trump downplayed the significance of the bill, calling it a “big yawn” in comparison to the SAVE America Act. 

Mike Johnson (R-La.), the speaker of the House of Representatives, formally sent the bipartisan housing package — which passed the House on June 23 by a margin of 358-32 — back to the White House on June 29. That triggered a 10-day deadline for Trump to sign the bill, veto it or allow it to become law without his signature. With Sundays excluded, the countdown will end at midnight Saturday after Friday’s deadline passes.

Housing industry stakeholders, who have almost unanimously backed the legislation, are eagerly awaiting its passage.

“The bipartisan 21st Century ROAD to Housing Act is a landmark step toward protecting the American Dream of homeownership. By expanding our housing supply and removing barriers to ownership, this legislation will help more Americans achieve their dream, strengthen communities and build generational wealth,” said Colin Allen, executive director of the American Property Owners Alliance. 

Build-to-rent lifeline

The housing package effectively bans institutional investors that already own 350 or more single-family homes from purchasing additional single-family properties. But the final version removed a pair of controversial provisions that largely froze new investments into build-to-rent (BTR) projects. 

One of the excluded provisions, which was included in a previous Senate version of the bill, would have included an institutional investor ban without carve-outs for BTR communities. Another would have mandated that new BTR communities be sold to individual homeowners within seven years of completion.

Both proposals, which were ultimately excluded from the final bill, would have significantly undermined the ability of BTR developers to generate returns on their investments.

The final text aligns with Trump’s executive order from January aimed at limiting institutional homebuying, while eliminating the broader restrictions on build-to-rent that raised significant concerns and opposition among housing industry stakeholders.

Streamlining homebuilding

The 21st Century ROAD to Housing Act aims to streamline the development of housing, primarily by cutting red tape. 

For example, the bill would exempt new categories of relatively small-scale development under the HOME program from review under the National Environmental Policy Act of 1969 (NEPA). The legislation would also limit duplicative environmental reviews in the HOME program and make other adjustments to reduce red tape associated with NEPA reviews. 

Another provision aimed at removing the permanent chassis requirement from manufactured homes has generated a lot of buzz in the industry. Manufactured housing is an attainable source of housing for millions of Americans, but it is primarily located in rural areas far from city centers. Removing the chassis rule could lower costs while expanding design flexibility, unlocking new opportunities for manufactured housing in higher-cost, infill and urban markets.

Shawn King, executive vice president of national sales and co-founder of Arrive Home, called the bill “the most consequential piece of manufactured housing policy in decades.”

“In the past, federal rules have forced builders to permanently attach a steel chassis to every manufactured home, even though fewer than 7% of these homes are ever moved after they’re installed,” King said. “That requirement alone has been adding $5,000 to $10,000 to the cost of every single home for no real benefit to the homeowner.

“Eliminating it doesn’t just lower the price tag; it opens the door to basements, multi-story designs and layouts that let manufactured homes fit naturally into neighborhoods instead of standing apart from them,” King added.

The legislation also creates grant programs to help state, local and tribal governments update regulatory processes and improve permitting capacity. Another grant program will help communities adopt pre-reviewed building plans that can streamline approvals.

The bill additionally simplifies approvals for multifamily buildings, expands affordable housing financing, supports the conversion of vacant commercial properties into housing, and improves access to developable land through the establishment of a database that enables better tracking of publicly owned land. 

“The 21st Century ROAD to Housing Act will help expand the nation’s housing supply by reducing regulatory barriers and encouraging local governments to reform zoning and land-use policies that have limited home building,” Bill Owens, the chairman of the National Association of Home Builders, said in a statement.

Mortgage and financing provisions

The bill includes several provisions that directly affect the mortgage industry and housing financing.

Key provisions include a Federal Housing Administration (FHA) loan pilot program for small-dollar mortgages below $100,000, along with a requirement that the Consumer Financial Protection Bureau issue a report to Congress to study how loan originator compensation rules affect the availability of small-dollar mortgages. 

Additionally, the housing package raises FHA multifamily statutory loan limits for the first time since 2003 and authorizes a three-year Community Development Block Grant–Disaster Recovery program. 

Another key provision aims to bolster the appraiser workforce by expanding training programs and providing grant funding to attract new talent.