WASHINGTON — On July 11, the 21st Century Road to Housing Act became law after President Donald Trump declined to sign or veto it within the 10-day window authorized by the Constitution.

Though the legislation passed in the House of Representatives by a vote of 358 to 32, Trump cancelled a scheduled signing ceremony on June 24, holding up the bill in an attempt to pressure Congress to pass the SAVE America Act, an elections reform package.

The ROAD to Housing Act is the first major, bipartisan housing legislation passed in 40 years. The main goal of the Act is to increase the supply of affordable housing. Historic spikes in home prices, high interest rates, and acute inventory shortages have made homeownership historically unattainable for the average American

Major Provisions

The once-in-a-generation legislative package includes 18 sections from both the House and Senate bills and at least 26 sections that incorporate previously introduced bipartisan legislation. For HVAC contractors, the 21st Century ROAD to Housing Act is primarily a housing supply and regulatory reform bill, but several provisions could have a meaningful impact on HVAC installation, replacement, and new construction opportunities. Here are five of the most relevant provisions:

1. Measures to Increase Housing Supply: The legislation encourages state and local governments to reduce zoning, land-use, and permitting barriers that slow residential construction. It also incentivizes communities to adopt housing production plans. More housing starts ultimately translate into increased demand for HVAC equipment, installation, commissioning, and long-term service contracts.
2. Aging Housing Stock. This provision authorizes a pilot program to provide grants and forgivable loans for home repairs and health-hazard mitigation in aging housing. HVAC contractors could benefit from increased retrofit work involving system replacements, indoor air quality improvements, electrification projects, and higher-efficiency heating and cooling equipment in aging homes.
3. Expansion of Manufactured and Modular Housing: The Act modernizes the federal definition of manufactured housing by removing the permanent chassis requirement and supports modular and prefabricated housing production. These homes require high-efficiency HVAC systems that can be factory-installed or quickly field-installed, creating opportunities for contractors experienced in manufactured housing and ductless, packaged, or compact HVAC solutions.
4. Multifamily Financing: FHA-insured multifamily loan limits have not changed in 12 years and no longer reflect market conditions. Raising those limits and indexing them to inflation will better align financing with construction costs and support new apartment development. Greater access to financing can increase demand for HVAC replacements, heat pump upgrades, energy-efficiency retrofits, and comfort improvements during home purchases or renovations.
5. Environmental Reviews: This provision streamlines the National Environmental Policy Act review process for small and infill housing projects, helping them move to construction faster. Quicker project approvals can shorten construction timelines, allowing HVAC contractors to begin work sooner and improve project scheduling and cash flow.

Industry Reactions

The National Association of Home Builders (NAHB) helped shape the legislation through years of advocacy.

“NAHB applauds lawmakers for working in a bipartisan, bicameral way to pass historic housing legislation that will deliver real benefits for the American people,” said NAHB Chairman Bill Owens. “The 21st Century ROAD to Housing Act will help expand the nation’s housing supply by reducing regulatory barriers and encouraging local governments to reform zoning and land-use policies that have limited home building.”

Associated Builders and Contractors (ABC) offered its support for the ROAD to Housing Act, although with some caveats.

"At a time when the nation faces a significant housing supply gap, policies should encourage the financing and construction of new housing,” said Kristen Swearingen, ABC vice president of government affairs. “The 21st Century ROAD to Housing Act addresses this need, while also breaking down many permitting barriers that prevent or delay the construction of new homes and preserving the build-to-rent segment.

“While we were troubled by the expansion of prevailing wage in some of the bill’s pilot programs,” Swearingen continued, “the majority of the provisions in this legislation are a win for ABC members, and we are encouraged it awaits President's Trump signature."