New Housing Bill Aims too Boost Affordability and Disaster Recovery
A proposed legislative package, the “Road to Housing Act of 2025,” is generating discussion for its potential to address housing affordability and enhance disaster recovery efforts. The bill includes provisions that coudl substantially impact the manufactured housing market and provide crucial support for homeowners affected by natural disasters.
Manufactured Housing Reforms
A key component of the bill targets manufactured housing, formerly known as mobile homes. These factory-built homes,transported in one or more sections,currently must be installed on a permanent chassis,according to the Department of Housing and Urban Development (HUD). The “Road to Housing Act of 2025” proposes eliminating this federal requirement and expanding lending and financing options for manufactured homes.
Economist Mark Zandi highlighted the potential benefits of these changes,noting that manufactured housing is more affordable to produce and sell. He pointed out its popularity in the South, a region experiencing particularly acute housing shortages. “With a few changes in lending and regulation,we might see more manufactured housing,and that could be very,very helpful for improving homeownership,” zandi stated.
Strengthening disaster Recovery Programs
The legislation also seeks to permanently authorize the community Development Block Grant Disaster Recovery (CDBG-DR) program,administered by HUD.This program provides essential resources to states,tribes,and communities for housing reconstruction following natural disasters.
Currently, the CDBG-DR program requires regular authorization from Congress, frequently enough after a disaster has occurred. Alys Cohen,director of federal housing advocacy at the National Consumer Law Center,described the permanent authorization as “one of the most meaningful accomplishments” of the proposed package. While individuals can receive aid from the federal Emergency Management Agency (FEMA) after a disaster, the CDBG-DR program is crucial for providing the necessary funds for rebuilding efforts.
Support for rural and Low-Income Homeowners
Another provision in the bill aims to assist low-income and rural homeowners with mortgages backed by the U.S. Department of Agriculture (USDA). Currently, borrowers with USDA direct loan mortgages do not have the option to reduce their monthly payments by extending the loan term, a common practice for government-backed mortgages. The “Road to Housing Act of 2025” would rectify this by allowing these borrowers to access such financial relief.
However,Cohen expressed some reservations,noting that it remains unclear whether the bill,in its entirety,will adequately address the needs of those most in need,including “underserved communities and households of color.” She characterized the bill as 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 itS a significant step forward.”
The “road to Housing Act of 2025” represents a multifaceted approach to tackling housing challenges, with potential implications for affordability, disaster resilience, and equitable access to homeownership.
