Federal Update: Bipartisan Housing Package Advances in Congress
On May 21, the U.S. House of Representatives passed the bipartisan 21st Century ROAD to Housing Act by an overwhelming 396-13 vote, marking a significant step forward in advancing federal housing policy aimed at increasing housing supply, reducing costs, and strengthening affordable housing investments nationwide. The legislation aims to increase housing production, reduce development barriers, and strengthen investments in affordable housing nationwide.
The legislation includes several provisions long advocated for by community development and housing organizations, including increasing banks’ Public Welfare Investment caps, allowing financial institutions to invest more capital in affordable housing and community development projects, modernizing and reauthorizing the HOME Investment Partnerships Program, preserving rural affordable housing, and streamlining federal review processes to accelerate housing production. Together, these reforms are intended to expand financing opportunities, reduce development delays, and increase housing availability in communities across the country.
PCRG has been proud to advocate alongside national partners for meaningful federal housing action, including through recent advocacy efforts during the National Community Reinvestment Coalition (NCRC) Conference Hill Day in Washington, D.C., where community development leaders met directly with congressional offices to discuss housing and community investment priorities. We appreciate the bipartisan leadership demonstrated by House Financial Services Committee Chairman Hill and Ranking Member Maxine Waters, as well as support from members of Pennsylvania’s congressional delegation.
While the House version does not include several provisions contained in the Senate package — including permanent authorization of CDBG-Disaster Recovery, PRICE, Moving to Work (MTW), and Rental Assistance Demonstration (RAD) — the vote represents important momentum toward a more comprehensive federal housing strategy at a time when communities across our region and nation continue to face significant housing affordability challenges.
The legislation now moves to the Senate for further consideration and potential reconciliation, with the Senate-passed version advanced earlier this year. PCRG will continue engaging with national coalitions and partners to support policies that expand access to safe, stable, and affordable housing throughout our region.
FY27 HUD Funding Proposal Raises Concerns
The House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD) recently released its draft FY27 appropriations bill, proposing $71.38 billion for HUD — nearly $6 billion below FY26 funding levels.
The proposal includes reductions to several critical housing and community development programs, including homelessness assistance grants and public housing operating and capital funds. At the same time, the bill preserves funding for programs that had been proposed for elimination in the President’s budget request, including the HOME Investment Partnerships, Community Development Block Grants (CDBG), and the Family Self-Sufficiency Program.
While HOME funding would still see a significant reduction from prior-year levels, the inclusion of continued funding for HOME and CDBG signals ongoing bipartisan recognition of the importance of flexible federal investments that support affordable housing, neighborhood revitalization, and local community development efforts. For many communities, these programs serve as foundational funding sources for housing rehabilitation, infrastructure improvements, economic development initiatives, and services that support residents and neighborhoods.
PCRG will continue monitoring federal budget negotiations and advocating for sustained investments in the programs that communities across Western Pennsylvania rely upon.
HUD Releases Recommendations to Streamline Housing Development
The U.S. Department of Housing and Urban Development (HUD) also released a new report outlining recommendations to reduce barriers slowing housing development and construction nationwide. The report, State and Local Best Practices for Home Construction, calls for streamlining permitting and environmental review processes, modernizing building requirements, reducing restrictive zoning and land-use regulations, and simplifying federal housing programs. The recommendations focus on policy changes that states and municipalities can implement to accelerate housing production, reduce development costs, and improve housing availability. You can view the report here.
The recommendations respond to a recent Executive Order directing HUD to identify strategies that encourage housing production and reduce development costs. As communities across Pennsylvania continue to face housing shortages and affordability pressures, conversations around permitting reform, land use, and development timelines are expected to remain central to both federal and state housing policy discussions.
State Update: Pennsylvania Establishes New Housing Leadership
Earlier this year, Gov. Josh Shapiro unveiled Pennsylvania’s first-ever Housing Action Plan — a comprehensive statewide strategy focused on expanding housing supply, improving affordability, modernizing housing development processes, and strengthening communities across the Commonwealth.
As part of that effort, the Department of Community and Economic Development (DCED) announced the appointment of Kevin Bush as Pennsylvania’s new Deputy Secretary for Housing. The creation of a dedicated housing leadership position reflects a major step forward in elevating and coordinating housing policy statewide — something PCRG and other housing advocates have long supported.
The position comes as Pennsylvania and many other states work to address housing affordability challenges, aging housing stock, workforce housing shortages, and barriers to new residential development. Establishing dedicated housing leadership can help improve coordination across agencies and align housing investments with broader economic and community development goals.
Bush brings more than a decade of leadership experience in housing, resilience, and community development at the federal, state, and local levels, including previous service at HUD overseeing a $90 billion portfolio of housing, community development, and disaster recovery programs.
Gov. Shapiro also recently announced $10 million in awards through the Pennsylvania Mixed-Use Housing Development Pilot Program, supporting projects expected to create more than 1,400 new homes and apartments across the Commonwealth. The program is designed to encourage residential development in mixed-use commercial corridors and community business districts, helping communities address housing needs while supporting local economic activity.
Looking Ahead
Together, these federal and state actions reflect growing bipartisan recognition that housing affordability, as well as supply challenges, require coordinated policy solutions. While significant work remains, recent legislative, administrative, and funding developments signal continued momentum around housing policy reform.
PCRG will continue monitoring developments, engaging with policymakers, and advocating for investments that strengthen neighborhoods and expand access to safe, stable, and affordable housing throughout Western Pennsylvania.