WASHINGTON — Congressional leaders reached a bipartisan agreement Tuesday on the 21st Century ROAD to Housing Act, clearing the way for final votes on what supporters are calling the most significant federal housing package in decades. Included in the bill is the Credit Union Board Modernization Act.
The CU Board Modernization Act allows federal credit unions in good standing to hold a minimum of six board meetings per year (at least one per fiscal quarter), rather than the currently mandated monthly meetings.
The compromise measure merges elements of housing legislation previously approved by the House and Senate and is designed to boost housing supply, reduce regulatory barriers to construction and expand opportunities for homeownership. The package was negotiated by Senate Banking Committee Chairman Tim Scott (R-SC), and Ranking Member Elizabeth Warren (D-MA), along with House Financial Services Committee Chairman French Hill (R-AR), and Ranking Member Maxine Waters (D-CA).
According to numerous reports, negotiators resolved one of the most contentious issues in the legislation: restrictions on large institutional investors purchasing single-family homes. The final compromise largely preserves limits on institutional purchases of existing single-family homes but removes a Senate provision that would have required investors in newly built rental housing to sell those properties after seven years. Home builders and rental housing groups had argued the requirement would reduce housing supply.
Provisions Would Streamline Reviews
The legislation also includes provisions intended to streamline federal reviews, encourage local housing development, expand manufactured housing opportunities and reduce regulatory burdens that supporters say contribute to housing shortages and higher costs.
The agreement follows months of negotiations after the Senate approved its version of the ROAD to Housing Act by an 89-10 vote in March and the House later passed an amended version by a 396-13 margin. Lawmakers then worked to reconcile differences between the two measures.
The Bipartisan Policy Center and other housing organizations have described the legislation as one of the most comprehensive housing reform efforts in years, combining provisions from the Senate’s ROAD to Housing Act and the House’s Housing for the 21st Century Act.
America’s Credit Unions Responds
America’s Credit Unions welcomed the compromise package and highlighted provisions affecting credit unions.
“America’s Credit Unions thanks Chairmen Scott and Hill and Ranking Members Warren and Waters for their bipartisan leadership to address affordable housing issues. Credit unions make homeownership possible for millions of members, and we are encouraged by lawmakers’ efforts to focus on practical solutions through the 21st Century Road to Housing Act,” said Scott Simpson, president and CEO of America’s Credit Unions.
“The legislation includes regulatory relief provisions that will allow credit unions to focus more of their resources on serving their members, including through the Credit Union Board Modernization Act. Our relentless advocacy with league partners and industry stakeholders for improvements to the regulatory environment will fuel stronger communities and deliver real results for families. We urge Congress to swiftly pass this much-needed package.”
DCUC Responds
“DCUC commends both the House and Senate regarding this critical housing legislation, and for recognizing the need to address housing affordability across America. Not only will it expand necessary pathways to homeownership but also provides meaningful reforms that can improve utilization of VA home loan benefits and support the financial readiness across military communities,” Anthony Hernandez, DCUC President/CEO, Ret. U.S. Air Force Colonel, said in a statement. “We are further encouraged by the inclusion of Credit Union Board Modernization language, a longstanding priority that reflects the realities of modern credit union governance while preserving strong oversight and accountability.”
“This represents an important step toward addressing one of the most significant challenges facing Americans today,” Jason Stverak, DCUC chief advocacy officer, added in a statement. “Credit unions across the nation remain dedicated to helping individuals and families achieve the dream of homeownership while building stronger financial futures. DCUC looks forward to continuing to work with Congress to advance policies that empower credit unions to meet the evolving needs of their members while also promoting greater parity across the financial services sector.”
Next Steps
As the CU Daily has been reporting, Hill advocates for credit unions have said congressional leaders are seeking to move the legislation quickly through both chambers as lawmakers attempt to complete major legislative priorities before the August recess. If approved by the House and Senate, the measure would be sent to President Donald Trump, who has expressed support for the legislation’s affordability and housing supply initiatives.
