In August, Missouri Congressman Emanuel Cleaver II hosted a housing summit in Kansas City, Missouri, to speak to a new federal law designed to increase the supply of affordable housing. Bill sponsors say that the 21st Century ROAD to Housing Act is the most significant bipartisan housing reform package in nearly 50 years.

Speaking to the collaboration among members of both chambers, housing advocates, lenders, local leaders and stakeholders, Cleaver said the spirit of partnership, “… produced landmark legislation that will expand housing supply, modernize our housing finance system, remove unnecessary barriers to development, and help make homeownership and affordable housing more attainable for millions of Americans.”

For Community Builders of Kansas City, which has developed more than 1,000 units comprised of single-family and multi-family market rate and affordable homes including properties dedicated to seniors, the Act’s significance aligns with the organization’s mission.

“The Act’s emphasis on increasing housing supply, preserving affordability, expanding access and removing barriers to development is consistent with CBKC’s mission to fuel equity, access, opportunity and advocacy in Kansas City’s urban core,” said Emmet Pierson, Jr, CEO. “The opportunity now is to combine new federal tools with local investment to produce and preserve housing at a scale that can strengthen entire neighborhoods.”

As the first comprehensive federal housing package passed in decades, the legislation combines provisions to tackle systemic affordability challenges, including:

  • Boosting housing supply: Streamlines federal regulations and cuts artificial red tape to speed up new home construction.
  • Restricting corporate buyers: Places caps and strict limits on large institutional investors buying up single-family residential homes. 
  • Reusing vacant spaces: Funds and encourages the conversion of empty, abandoned or commercial buildings into affordable residential housing.
  • Supporting local lenders: Expands the capacity of community banks to issue small-dollar mortgages and fund local home construction. 
  • Modernizing HUD programs: Updates major federal grants, including Community Development Block Grants (CDBG) and the HOME Investment Partnerships Program. 

CDBGs provide federal funding to cities, counties and states for a broad range of community development needs, principally benefiting low- and moderate-income residents.

HUD provides HOME funds to states and local governments to help build, buy or rehabilitate affordable rental and owner-occupied housing and provide direct rental assistance.

HOME helps finance affordable housing itself, while a CDBG can address the broader community development needs that help make neighborhoods viable places to live.

Cleaver, ranking member of the House Financial Services Subcommittee on Housing and Insurance, said he wants Kansas City to be among the first cities to put the new law to work and ultimately serve as a model for other communities.

Kansas City already has momentum. The city established its Housing Trust Fund in 2018 to support the creation and preservation of affordable housing. In August, voters approved another $100 million for affordable housing, giving the city significant local resources that could work alongside the new federal housing tools.

Together, these investments can help bring more housing projects to life, preserve existing affordable homes and extend the impact of this investment into surrounding neighborhoods.