Policy
Shawn Poynter / There Is More Work To Be Done
Shawn Poynter / There Is More Work To Be Done
Tracking Implementation of Rural Provisions in the 21st Century ROAD to Housing Act
The 21st Century ROAD to Housing Act, enacted in July 2026, includes a wide variety of provisions. Many of the law’s provisions require further action by federal agencies and/or Congress before they will impact the U.S. housing supply. Some require agencies to develop regulations or conduct studies. Others will not be effective unless Congress adds funds in future appropriations bills.
The Housing Assistance Council (HAC) is tracking actions taken to implement the law’s provisions that seem most relevant to affordable housing in rural areas. This tracker does not include every provision in the law.
If you are aware of implementation actions that are not on this list but should be, please let HAC know.
Table of Contents
Rural Rental Housing Preservation
Other Rural Housing Provisions
Environmental Review
Finance and Banking
Native American Housing
Persistent Poverty Areas
Manufactured Housing
HOME
CDBG
Small-Dollar Loans
Other HUD
Research and Reports Related to Rural Housing
Resources for More Information
PROVISION |
ACTION NEEDED |
STATUS |
Rural Rental Housing Preservation |
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| Decoupling: At the time the law was enacted, Section 521 Rental Assistance could be provided only if a property had an active Section 515 or 514 loan. ROAD changes this by “decoupling” the Rental Assistance from the USDA loan in certain circumstances. The loan must be within four years of expiration. USDA must determine that the loan cannot be restructured, or the property owner must decline to restructure it. The property must have Rental Assistance already. If all these conditions are met, USDA can renew the existing RA contract for 20 years, subject to annual appropriations. USDA can also extend the RA to cover unassisted units at a property where existing RA is being decoupled. (ROAD Section 502(e)) | ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027. Congress will need to continue appropriating funds for Section 521 Rental Assistance. |
Decoupled Rental Assistance is operating and funded through December 11, 2026, as it has been since FY24 based on authority provided in USDA’s annual appropriations. USDA has named this pilot program Stand-Alone Rental Assistance (SARA). The pilot’s terms are explained in a USDA notice. |
| Preservation and Revitalization Program: The Multifamily Preservation and Revitalization Program (MPR) is permanently authorized, with a number and a revised name: the Section 545 Housing Preservation and Revitalization Program. (ROAD Section 502(e)) | ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027. Congress will need to continue appropriating funds for the program. |
MPR is funded through December 11, 2026 and is operating based on funding notices such as this from 2024. |
| Preservation Technical Assistance: USDA may make grants to nonprofits, coops, and public housing agencies to provide technical assistance for preservation. (ROAD Section 502(e)) | ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027. Congress will need to continue appropriating funds for the program. |
[Pilot program] is operating and funded through the end of FY26 on September 30, 2026. |
| Notices to Owners and Tenants: USDA is required to send written notices every year to owners whose mortgages will mature within four years, and tenants who live in properties with mortgages that will mature within two years. (ROAD Section 502(e)) | ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027. | |
| Two-Step Transfers: When a nonprofit or limited partnership purchases a Section 515 property to preserve it, the ownership transfer may occur before rehabilitation. (ROAD Section 502(n)) | USDA has a “Simple Transfer” pilot in effect until December 31, 2027. | |
| Foreclosures: When a USDA multifamily mortgage is foreclosed, USDA Rental Assistance continues and can be used at other USDA-financed properties. The law also extends existing federal foreclosure processes to include properties with Section 538 guaranteed loans. (ROAD Section 502(a)) | ||
| Vouchers: By July 11, 2028, USDA must issue regulations establishing a process for adjusting the amounts of rural housing vouchers annually and when tenants’ incomes change. (ROAD Section 502(k)) | ROAD requires USDA to issue regulations by July 11, 2028. | |
Other Rural Housing Provisions |
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| Staffing and Technology: If Congress appropriates funds for these purposes, USDA may increase its staff and upgrade its information technology systems for the rural housing programs. (ROAD Section 502 (c)) | Congress would need to appropriate funds. | |
| Section 502 Direct: Effective immediately, USDA has the authority to extend a Section 502 direct loan for a term up to 40 years after the date of loan refinancing or modification. (ROAD Section 502(o)) | USDA RD should issue guidance (a handbook change, Unnumbered Letter, or Administrative Notice) or a regulatory change. | |
| Section 502 Guaranteed: Licensed or regulated child care providers can run their businesses in homes with Section 502 guaranteed loans. Properties that include Accessory Dwelling Units are eligible for Section 502 guaranteed loans. (ROAD Sections 502(q) and (r)) | USDA issued proposed regulations on March 31, 2026 that would make these changes. Comments were due June 1. A final regulation has not yet been promulgated. | |
| Section 502 Guaranteed: When a buyer takes over the seller’s Section 502 guaranteed mortgage, the seller is no longer liable for the mortgage. USDA may charge a processing fee. (ROAD Section 502(p)) | ||
| Section 504: Home repair loans and grants under Section 504 have been available for very low-income homeowners only. ROAD extends the eligibility for loans (but not grants) to include homeowners with low incomes. Also, for years, the law has required USDA to place a mortgage on any property receiving a Section 504 loan over $7,500. ROAD raises that minimum to $15,000. (ROAD Section 502(g)) | ||
| Rural Community Development Initiative: The law authorizes the RCDI capacity building program with a $500,000 cap on grants. (ROAD Section 502(h)) | USDA RD must develop regulations for the program. (RCDI has existed for years as a pilot program without regulations.) Congress will need to continue appropriating funds for it. | USDA issued a NOFO for FY25 RCDI funds in July 2025 but rescinded it in July 2026, announcing that it would be revised and new applications would be required. The program also received an appropriation for FY26. |
Environmental Review |
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| Exemption from Review: USDA-financed construction or modification on an infill site is exempt from environmental review. An “infill site” is defined as a site served by existing infrastructure including water lines, sewer lines, and roads. (ROAD Section 103) | By July 11, 2031, USDA must submit a report to Congress on the impact of this exemption. | |
| HUD-USDA coordination: The law requires HUD and USDA to coordinate their environmental review processes for projects that receive funds from both departments. (ROAD Section 802) | By early January 2027, HUD and USDA must develop a memorandum of understanding establishing coordination. By July 11, 2027, they must report to Congress on ways to improve the review process for jointly funded projects. | |
| State and local actions: The law allows state, local, and Tribal governments to streamline environmental reviews. (ROAD Section 205) | ||
Finance and Banking |
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| Public welfare investment: The amount banks are permitted to use for public welfare investment, known generally as the PWI cap, is increased in Section 203 of the law. The provision applies to national banks (regulated by the Comptroller of the Currency) and to state banks that are regulated by the Federal Reserve. Previously they were permitted to invest up to 15% of their capital and surplus in public welfare activities, which can include Low-Income Housing Tax Credits, support for small businesses, and the like. ROAD to Housing raises the cap to 20%. (ROAD Section 203) | By July 11, 2028, and then every two years, OCC and the Federal Reserve must submit reports to Congress about public welfare investments. | |
| Rural lenders studies: The law requires two studies examining rural lenders. The federal bank regulators (the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve) must produce a joint study regarding the institutions they oversee, and the National Credit Union Administration must conduct a similar one for credit unions. Both studies will identify ways to “improve the growth, capital adequacy, and profitability” of institutions that primarily serve rural areas, then identify federal statutes or regulations that limit those lenders’ work or the establishment of new rural institutions. (ROAD Section 909) | Both studies are due to Congress by July 11, 2027. | |
Native American Housing |
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| Tribes and Tribally Designated Housing Entities are specifically eligible for some of the new and revised programs under the law, but it does not otherwise address Native housing programs. | ||
Persistent Poverty Areas |
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| The law specifically mentions persistent poverty areas only once, providing that USDA may (but is not required to) exempt projects in persistent poverty regions from the requirement for Rural Community Development Initiative grantees to provide matching funds. (ROAD Section 502(h)) | USDA could include exemption language in its RCDI regulations. | |
Manufactured Housing |
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| Chassis: The law removes the permanent chassis requirement for manufactured housing. (ROAD Section 301(a) and (b)) | HUD, in consultation with the Manufactured Housing Consensus Committee, must develop standards for homes without a permanent chassis. | HUD recently proposed to eliminate the permanent chassis requirement for upper floors of manufactured homes, so that change could be put into place soon. |
| Energy efficiency: Energy efficiency standards for manufactured housing must be adopted by HUD (i.e., standards cannot be imposed by other agencies unless HUD agrees). (ROAD Section 301(d)) | HUD must adopt minimum energy efficiency standards by July 11, 2027 and then update them every three years. | |
| FHA insurance: HUD must study barriers to FHA-insured lending for modular housing and recommend changes. FHA financing for modular homes is authorized. HUD must study the cost effectiveness of offsite construction. (ROAD Sections 302 and 303) | The reports on the barriers study and the offsite construction study must be published by July 11, 2027. By early November, 2027, HUD must begin developing regulations for construction financing loans on modular homes. | |
| PRICE: The law authorizes HUD’s Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Program for seven years to provide grants to entities to maintain, protect, and stabilize manufactured housing and manufactured housing communities. (ROAD Section 304) | Congress will need to appropriate funds for PRICE. HUD will need to develop regulations. | PRICE was initially created and funded in the FY23 omnibus appropriations bill and received a small additional appropriation in FY24, but has not been funded since then. |
HOME |
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| Authorization: The law permanently reauthorizes HOME. (ROAD Section 501) | ||
| Home values: HOME funds can be used for purchase or rehab of homes valued at up to 110% of the average purchase price for the area, instead of 95%. (ROAD Section 501) | HUD will need to revise its regulations. | |
| Income limits: Households earning up to 100% of area median income are eligible for HOME homeownership assistance. HOME rental housing is still limited to households earning no more than 80% of AMI. (ROAD Section 501) | HUD must revise its regulations by July 11, 2027. | |
| Environmental review: The law categorically excludes some HOME activities from environmental review: new construction infill housing, acquisition of real property for affordable housing purposes, rehabilitation projects, and new construction of projects with 15 or fewer units. Developments receiving funding from two separate entities must have only one environmental review. (ROAD Section 501(l)) | HUD must revise its regulations by July 11, 2027. | |
| Build America, Buy America: HUD must review and update its implementation of the Build America, Buy America Act for HOME-funded projects. (ROAD Section 501(m)) (The law has no other provisions regarding BABA.) | By early January, 2027, HUD must review its implementation of BABA for HOME-funded projects. By early April, 2027, HUD must update its guidance on applying BABA to HOME projects and must report to Congress. | |
| Section 3: When assisting 50 or fewer homes, state recipients of HOME funds and participating jurisdictions receiving less than $3 million in HOME funds are exempt from the Section 3 requirements to provide jobs and economic opportunities to low-income residents. (ROAD Section 501(n)) | ||
| CHDO definition: The law makes it easier for local nonprofits to qualify as Community Housing Development Organizations by requiring “accountability” to low-income community residents rather than “significant accountability.” (ROAD Section 501(b)) | ||
| Infrastructure: HOME funds can be used for infrastructure improvements related to a property assisted by either HOME or LIHTC in a place that is not a CDBG entitlement area. (ROAD Section 501(d)) | HUD must revise its regulations by July 11, 2027. | |
| Tenant selection: Properties with four or fewer rental units are exempted from some tenant selection requirements, such as use of a wait list. (ROAD Section 501(q)) | ||
| Allocation amounts: A local government must receive a formula allocation of $750,000 rather than the previous $500,000 to be designated a participating jurisdiction. (ROAD Section 501(u)) | ||
| Revitalizing Empty Structures Into Desirable Environments (RESIDE): The law creates a new pilot program within HOME, making competitive grants to participating jurisdictions to convert vacant and abandoned buildings to affordable housing. (ROAD Section 210) | Congress would need to appropriate funds to implement this program. HUD is unlikely to promulgate regulations for a pilot program, but its Notice of Funding Opportunity would need to provide enough information to guide grantees. | |
CDBG |
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| New construction: The law makes new construction of affordable housing an eligible activity for CDBG funds appropriated for FY27 and later years. A grantee can use up to 20% of its annual CDBG allocation for this purpose. (ROAD Section 204(a)) | ||
| Community Development Block Grant-Disaster Recovery: The law authorizes the CDBG-DR program for three years. States, Tribes, and local governments are eligible for grants. (ROAD Section 504(d)) | Within 30 days after the law’s enactment, HUD must publish a Federal Register notice explaining allocation methodologies and requesting comments. By January 11, 2027, HUD must issue proposed regulations for the program, with a 90-day comment period. Final regulations must be issued by July 1, 2027. Congress will need to appropriate funds for the program. | The Federal Register notice was published August 13, 2026, requesting comments by September 14, 2026 on CDBG-DR allocations. Some of HUD’s questions specifically address the rural and Tribal impact of formula methodologies. The notice also asks how to define “catastrophic disasters,” the term used in the law. |
| HUD/USDA/VA collaboration: The law requires HUD, USDA, and VA to identify opportunities for collaboration to streamline the implementation of their housing programs. (ROAD Section 801) | The departments must provide a report to Congress by early January 2027, publish it in the Federal Register, and accept comments for 30 days. | |
| Publicly owned land: Recipients of CDBG funds are required to maintain public databases of land they own, effective on October 1, 2026. (ROAD Section 104) | ||
Small-Dollar Loans |
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| Small-dollar mortgage pilot: HUD/FHA may (but is not required to) create a pilot program to increase access to small-dollar mortgages, $100,000 or less, secured by properties with 1-4 units that are their owners’ principal residences. (ROAD Section 105) | The pilot may be created by July 11, 2027, and will terminate four years after it is created. | |
| Small-dollar loan research: The law requires CFPB to study small-dollar loans originated by FHA, VA, and USDA or eligible for purchase by Fannie Mae or Freddie Mac and barriers to this type of lending. (ROAD Sections 401 and 402) | Two studies are due in early April 2027. | |
Other HUD |
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| Whole-Home Repairs: The law authorizes a pilot program at HUD to address home repair needs and health hazards holistically to improve accessibility, habitability and safety, or energy efficiency. Both rental and owner-occupied units are eligible. Funds will be awarded to states, Tribes, local governments, and nonprofits. For states and territories, HUD must prioritize applications that will give a proportionate share of funds to nonmetro areas. The pilot will expire on October 1, 2031. (ROAD Section 202) | Congress would need to appropriate funds. | |
| Opportunity Zones: HUD may give extra weight to funding applications that would be in or would benefit an OZ. (This provision does not apply to USDA or other agencies.) (ROAD Section 201) | Before 21st Century ROAD to Housing was enacted, HUD offered preference points for OZs in several NOFOs. | |
| Housing counseling review: The law requires HUD to review the performance of housing counseling agencies and individual counselors. HUD can require additional training and other remedial actions. (ROAD Section 101) | ||
| Foreclosure counseling: HUD must offer foreclosure mitigation counseling for owners who are 30 days or more delinquent on mortgages made, guaranteed, or insured by FHA, VA, USDA, or HUD Section 184 or 184A. (ROAD Section 101) | ||
| HUD voucher inspections: Units with financing from LIHTC, HOME, or USDA and an inspection within the past year will be considered to meet HUD voucher inspection requirements. The law also allows (but does not require) HUD to permit remote or video inspections for units in rural or small areas. (ROAD Section 405) | ||
Research and Reports Related to Rural Housing |
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| Section 502 direct loans subsidy recapture: USDA must submit a publicly available report to Congress on subsidy recapture, which refers to the requirement for homebuyers using the Section 502 direct mortgage program to repay a portion of their subsidy amounts when they sell their homes or pass away. The report to Congress must include information about the total subsidy amount provided, how much is being recaptured, and the amount of time and costs associated with recapturing those subsidies. ROAD Section 502(b) (which refers to Section 521 but is not about Section 521 Rental Assistance). | The report is due by mid-January 2027. | |
| Annual report to Congress: USDA must prepare an annual report on the rural housing programs and publish it online. (ROAD Section 502(i)) | The report must be published annually. | |
| GAO report: The Government Accountability Office must provide a report to Congress analyzing the impact of outdated RHS technology on borrower services and costs and estimating the funding and staffing needed to modernize it. (ROAD Section 502(j)) | GAO’s report is due by July 11, 2027. | |
| Processing backlog report: USDA must report to Congress on the status of its processing backlog for Section 502 and 504 loan applications. (ROAD Section 502(s)) | The first report is due by October 9, 2026, and then a subsequent report is due every year. | |
Resources for More Information
Implementation Matrix for the 21st Century ROAD to Housing Act, National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, July 2026.
ROADmap: An Implementation Guide for the 21st Century ROAD to Housing Act, National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, July 2026.
The 21st Century ROAD to Housing Act is Now Law: What it Means for Tribal Housing, National American Indian Housing Council, July 11, 2026.
21st Century Road to Housing Act: Impacts on Low-Income Households, National Low Income Housing Coalition, July 2026.
Comparison of Selected Versions of H.R. 6644, Congressional Research Service, July 2026.
HAC News, Housing Assistance Council, every two weeks.
Housing Assistance Council