The 21st Century ROAD to Housing Act, signed into law on July 11, 2026, represents one of the most comprehensive federal housing policy packages enacted in decades—and could create significant opportunities for Inland Empire communities, developers, small businesses and residents seeking greater economic mobility.

According to an analysis by the Bipartisan Policy Center, the final legislation brings together provisions from more than 60 previously introduced bills, including 36 measures with bipartisan sponsorship. The package addresses nearly every part of the housing system, from development approvals and affordable housing financing to manufactured housing, homeownership, community banking and neighborhood revitalization.

After months of negotiations, the Senate approved the legislation by an 85–5 vote on June 22, followed by a 358–32 vote in the House on June 23.

What’s in the Final Deal?

The final law combines major elements of earlier House and Senate housing proposals while preserving several negotiated compromises.

Among the most notable provisions, the law:

• Raises the cap on the Rental Assistance Demonstration program by 100,000 units.
• Authorizes the Community Development Block Grant Disaster Recovery program for three years.
• Creates a new Moving to Work program cohort focused on economic opportunity and pathways to independence.
• Retains nine community banking provisions initially included in the House legislation.
• Restricts certain large institutional investors from purchasing additional single-family homes while maintaining an exception for properties constructed or acquired specifically for rental use.
• Establishes a HUD renter-outreach resource for tenants living in properties owned by institutional investors.

For the Inland Empire, however, some of the law’s most consequential provisions are those designed to accelerate housing construction, unlock underused property and expand access to capital.

More Resources for Cities That Build Housing

The law establishes a $200 million annual Innovation Fund for local governments and tribal communities that demonstrate measurable increases in housing production.

Communities could qualify by adopting policies such as streamlined permitting, density bonuses, zoning reforms and faster development approvals. The program is authorized for seven years.

For Inland Empire cities confronting rapid population growth and housing affordability challenges, the fund could provide additional resources to modernize permitting systems, increase planning capacity and move housing projects through the approval process more efficiently.

That could also create opportunities for local planning firms, architects, engineers, environmental consultants, technology providers and businesses that help cities improve development processes.

New Support for Planning and Infrastructure

The legislation creates a competitive HUD grant program to help cities, counties, tribal governments and regional planning agencies undertake housing-related planning and community development.

Eligible activities include updating regulatory processes, increasing inspection capacity and coordinating housing development with transportation planning.

This provision may be especially important for the Inland Empire, where housing growth must be coordinated with transportation, employment centers, schools, utilities and other infrastructure.

It could help communities better connect new housing to major job corridors, transit systems and commercial districts—while generating contracting opportunities for local consultants, construction professionals and professional-service firms.

Converting Vacant Buildings Into Housing

The law also creates the Revitalizing Empty Structures Into Desirable Environments Act, or RESIDE Act, pilot program.

The program will help local governments convert vacant commercial and industrial buildings into affordable housing, with priority given to economically distressed communities and Opportunity Zones.

Across the Inland Empire, this could support the redevelopment of underused office buildings, aging shopping centers, vacant retail properties and obsolete commercial spaces.

• Adaptive-reuse projects can create opportunities for:
• General contractors and subcontractors
• Architects and engineers
• Environmental and remediation firms
• Interior designers
• Property managers
• Building-material suppliers
• Landscapers and maintenance providers
• Neighborhood-serving retailers and restaurants
  
  

Transforming vacant buildings can also place new residents closer to existing businesses, helping restore foot traffic and consumer spending in older commercial corridors.

More Affordable Housing Financing

The law makes affordable housing construction an eligible use of Community Development Block Grant funding. It also increases the amount banks may invest in affordable housing and community development projects through public-welfare investments—from 15% to 20% of their capital and surplus.

These changes could expand the financing available for affordable and mixed-income developments, particularly when federal resources are combined with state, county, city and private investment.

For the Inland Empire development community, this could make it easier to assemble complex financing packages and move projects that might otherwise remain financially infeasible.

It may also strengthen opportunities for community development financial institutions, minority depository institutions, mission-oriented lenders and nonprofit housing organizations.

Faster Environmental Reviews

Several sections of the law are intended to reduce duplication and delay in federal environmental reviews.

The legislation expands categorical exclusions for certain federally supported housing activities, gives HUD greater authority to delegate environmental responsibilities to state and local governments, and streamlines reviews for smaller projects, infill developments and certain affordable housing activities.

The reforms do not eliminate local or state development requirements. However, they may reduce the time and administrative expense associated with overlapping federal reviews.

For developers, shorter approval timelines can lower carrying costs and reduce uncertainty. For small contractors and professional firms, projects that move forward more quickly can translate into more consistent work and faster payment cycles.

Pre-Approved Housing Designs

Through the Accelerating Home Building Act, local governments and tribes may receive grants to adopt pre-reviewed housing designs for accessory dwelling units, duplexes, townhomes and other forms of affordable housing.

This could help Inland Empire cities standardize commonly requested designs and shorten review times for property owners and small-scale developers.

• Pre-approved plans could make it easier for:
• Homeowners to add accessory dwelling units.
• Small builders to complete infill projects.
• Families to create multigenerational housing.
• Property owners to generate rental income.
• Communities to add housing without relying solely on large developments.

For entrepreneurs, this provision may create a new market for firms specializing in ADUs, prefabricated construction, permitting assistance, financing and property management.

Expanded Opportunities in Manufactured and Modular Housing

The legislation includes an entire title focused on manufactured and modular housing.

It eliminates the permanent-chassis requirement for certain manufactured homes, increases FHA-insured manufactured housing loan limits, supports the preservation of manufactured housing communities and directs HUD to identify barriers facing modular housing developers.

Manufactured and modular construction could be particularly valuable in the Inland Empire because it may allow housing to be produced more efficiently and at a lower cost than some traditional construction methods.

The reforms may generate opportunities for local manufacturers, transportation companies, site-preparation contractors, installers, utility providers and businesses supporting manufactured-home communities.

Greater Access to Small Mortgages

The law authorizes an FHA pilot program designed to expand access to mortgages of less than $100,000. It also requires federal regulators to examine how fees and mortgage-originator compensation practices affect the availability of smaller loans.

Although many Inland Empire homes cost substantially more than $100,000, small-dollar mortgages may still support the purchase or rehabilitation of manufactured homes, homes in certain rural areas and lower-cost properties requiring repairs.

Greater access to responsible mortgage financing could help more renters begin building equity while creating additional business for community lenders, mortgage professionals, real estate agents, appraisers and housing counselors.

Appraisal Workforce Opportunities

The legislation reforms appraisal licensing and training, adds flexibility for trainee appraisers and authorizes grants supporting appraisal workforce development.

This could create new career pathways for Inland Empire residents while helping address appraisal shortages that can delay real estate transactions.

For workforce-development organizations, colleges and professional associations, the provision presents an opportunity to introduce more residents—including people from communities historically underrepresented in the profession—to appraisal careers.

Strengthening Community Banks and Local Lending

The final law retains nine provisions focused on community banks and credit unions.

Among other changes, the legislation supports the formation of new community banks and minority depository institutions, establishes greater regulatory flexibility for smaller financial institutions and formalizes a mentor-protégé program pairing large banks with smaller, rural and minority-owned institutions.

A stronger community banking sector could benefit Inland Empire entrepreneurs who often struggle to obtain financing from larger institutions.

Locally focused banks and credit unions may be more willing to evaluate borrowers based on community relationships, business potential and local market knowledge. That could expand access to mortgages, construction financing, small-business loans and community development capital.

Limiting Institutional Purchases of Single-Family Homes

The Homes Are for People, Not Corporations provision restricts large institutional investors that own at least 350 single-family homes from purchasing additional newly available single-family homes.

The law includes exceptions, including for institutional investors purchasing or constructing homes specifically intended for the rental market.

The provision may give individual buyers a better opportunity to compete for certain homes, although its ultimate effect will depend on implementation and the availability of housing in each local market.

For Inland Empire families, improved access to homeownership can support long-term wealth creation. Homeownership also generates economic activity for real estate professionals, lenders, insurance agents, contractors, furniture stores and home-service businesses.

Why this Housing Bill is Important to Inland Empire Business and Communities

Housing policy is also economic-development policy.

When employees cannot afford to live near their jobs, businesses face longer commutes, higher turnover and greater difficulty recruiting workers. Housing instability can also affect attendance, productivity and household spending.

Increasing the supply of housing at a variety of price points could help Inland Empire employers attract and retain workers while allowing more residents to live closer to employment opportunities.

New housing development also supports a broad network of small and microbusinesses—not only large developers and construction companies.

Projects require surveyors, electricians, plumbers, roofers, painters, landscapers, security firms, caterers, marketing companies, accountants, attorneys, insurance brokers and dozens of other local vendors.

Once residents move in, they create demand for childcare, healthcare, retail, restaurants, transportation and personal services.

An Economic-Mobility Opportunity

For working families, housing is one of the most important foundations of economic mobility. Stable and affordable housing makes it easier for people to remain employed, pursue education, start businesses and accumulate savings. Homeownership can provide an opportunity to build intergenerational wealth, while affordable rental housing can give families the financial breathing room needed to invest in their futures.

The new law also supports whole-home repair programs that can provide grants or forgivable loans to homeowners and landlords for property repairs and modifications.

For lower-income homeowners and older adults, these resources could help preserve existing homes, prevent displacement and support aging in place. They could also generate work for local repair contractors and skilled tradespeople.

What the Inland Empire Should Watch Next

The passage of the legislation is only the beginning. Federal agencies must now develop regulations, launch grant programs and establish implementation timelines. Inland Empire cities, counties, housing authorities, developers, lenders and community organizations should begin identifying projects and partnerships that could benefit.

Local leaders should pay particular attention to:

• HUD planning and housing-production grants
• The $200 million annual Innovation Fund
• Commercial-to-residential conversion funding
• Whole-home repair pilot programs
• Manufactured and modular housing reforms
• Community bank and minority depository institution initiatives
• Appraisal workforce-development grants
• Changes to CDBG and HOME funding
• Pre-approved housing design programs

The most successful Inland Empire communities will likely be those that begin preparing early—building partnerships, identifying underused properties, reviewing local permitting systems and creating pipelines of projects that can compete for new federal resources.

The Bottom Line

The 21st Century ROAD to Housing Act will not solve the region’s housing affordability crisis on its own. Land costs, interest rates, construction expenses, infrastructure needs and local approval processes will remain significant challenges.

However, the legislation provides new tools that could help Inland Empire communities build and preserve more housing, revitalize underused properties, strengthen local financial institutions and create pathways to homeownership.

For the region’s business and development community, the law represents more than a housing package. It is a potential pipeline of investment, contracts, jobs, entrepreneurship and neighborhood renewal.

Source: Bipartisan Policy Center, “Inside the Deal: What’s in the Final 21st Century ROAD to Housing Act,” updated to reflect the law enacted July 11, 2026.