Landmark Federal Housing Legislation Signed into Law, Bringing New Resources and Relief to Michigan Families
Habitat for Humanity of Michigan helped advocate for the 21st Century ROAD to Housing Act, the most significant federal housing legislation in more than a decade
LANSING, Mich. — The 21st Century ROAD to Housing Act has been signed into law, delivering the most significant bipartisan federal housing legislation in more than a decade. For Michigan families struggling with housing costs and availability, the new law unlocks resources, reduces bureaucratic barriers, and creates new pathways to homeownership across the state.
Habitat for Humanity of Michigan joined Habitat for Humanity International and affiliates across the country in advocating for the bill’s passage. In March, Habitat Michigan traveled to Washington, D.C., meeting with legislators and sharing the on-the-ground reality facing low- and moderate-income families in communities across our state. The final legislation reflects many of the priorities Habitat championed.
“The passage of the 21st Century ROAD to Housing Act is a real win for Michigan families, and it reflects the power of collaborative advocacy. Habitat Michigan was proud to stand alongside Habitat for Humanity International and our affiliates in Washington this past March to make the case for these policies. We know from our work across the state that the barriers to homeownership are real, and this legislation takes aim at many of them. Now the work shifts to ensuring these programs are funded so they can do what they were designed to do. Habitat Michigan will remain at the table for that conversation.”
— Don Wilkinson, President and CEO, Habitat for Humanity of Michigan
What the Law Means for Michigan
Michigan communities stand to benefit from several key provisions:
Turning Vacant Buildings into Homes (Sec. 210)
The RESIDE Act creates a five-year pilot program to help communities convert vacant and abandoned commercial and industrial buildings into affordable housing. This provision has particular potential in Michigan cities like Detroit, Flint, Saginaw, and Benton Harbor, where vacant properties have long represented both a challenge and an opportunity. Funds can cover acquisition, remediation, and full redevelopment, with priority given to distressed communities.
Keeping Homes Out of Corporate Hands (Sec. 1001)
The “Homes Are for People, Not Corporations” provision prohibits large institutional investors from purchasing certain single-family homes, ensuring more starter homes are available to individual buyers rather than investment portfolios. Penalties against violators will be directed back to HUD to fund homeownership programs, including down payment assistance which creates a self-reinforcing cycle of opportunity for Michigan homebuyers.
Expanding Funding for New Home Construction (Sec. 204, 501)
The law allows Community Development Block Grant (CDBG) funds — a critical resource for Habitat affiliates across Michigan — to be used for affordable housing construction, not just repair and infrastructure. It also reauthorizes and modernizes the HOME Investment Partnerships Program, raising income eligibility for homeownership assistance from 80% to 100% of area median income, which opens the door for more Michigan families to qualify.
Helping Low-Income Homeowners Make Critical Repairs (Sec. 202)
The Whole-Home Repairs Act establishes a five-year pilot program offering grants and forgivable loans to low-income homeowners to address repair needs, accessibility challenges, and health and safety hazards in aging homes. Michigan’s housing stock, much of which is decades old, makes this provision especially timely.
Strengthening Rural Housing Opportunities (Sec. 103, 502)
Reforms to USDA Rural Housing Service programs will improve housing opportunities in Michigan’s rural communities, including the Upper Peninsula and other areas that rely on these programs. The law expands loan flexibility, increases repair loan limits, and streamlines processing times. It also exempts USDA-funded rural infill construction from certain federal environmental review requirements, reducing timelines and costs for rural development projects.
Addressing the Small-Dollar Mortgage Gap (Sec. 401, 402)
Many Michigan communities, particularly in lower-cost rural and urban areas, face a frustrating paradox: homes are affordable, but buyers can’t find mortgage financing for them because small-dollar loans are unprofitable for lenders. The new law directs the Consumer Financial Protection Bureau to study and identify ways to remove these barriers, which is a first step toward ensuring financing is available where homes are already within reach.
Speeding Up Environmental Reviews (Sec. 205, 206)
Multiple provisions streamline the environmental review process for HUD- and USDA-funded projects, reducing delays and costs for affordable home construction and repair which directly benefit Habitat affiliates working to bring homes to market faster.
Incentivizing Local Zoning Reform (Sec. 208)
A new $1 billion Innovation Fund will offer competitive grants to communities that have taken steps to increase their housing supply. This gives Michigan cities and townships a concrete financial incentive to modernize zoning codes and remove regulatory barriers to building more homes.
The passage of the 21st Century ROAD to Housing Act is a significant achievement, but it is only the first step in a longer process. Authorizing programs, pilots, and initiatives creates the framework, but funding them is what makes them real. Congressional appropriations must follow for these provisions to deliver results, and that budget conversation is now the critical next front. Habitat for Humanity of Michigan will continue working alongside Habitat for Humanity International to advocate for the funding needed to turn this landmark legislation into tangible opportunity for families across Michigan.
Additional resources
21st Century ROAD to Housing Bill Text and Section by Section Summary
About Habitat for Humanity of Michigan
Habitat for Humanity of Michigan is the state support organization for Michigan’s 43 Habitat for Humanity affiliates. Together, we work to bring people together to build homes, communities, and hope across the state. To learn more, visit habitatmichigan.org.
CONTACT: Wendy Clow, Director of Operations, Habitat for Humanity of Michigan
EMAIL: wclow@habitatmichigan.org
