Congress continues to advance significant housing supply incentives

September 03, 2025

JPMorganChase recognizes that fostering an affordable and resilient housing market for low- and moderate income (LMI) families is crucial for driving economic growth and expanding opportunity. This is why we are committed to advancing an affordable and stable housing market through our business lending and equity investments, research and policy expertise, and philanthropic capital.

Limited housing supply is widely recognized as a major contributor to rising housing costs. Overly restrictive land use and development policies are a major impediment to building housing for Americans across the income spectrum, with the implications being particularly acute for families earning entry-level wages and first-time homebuyers. Many of these land use decisions fall under the purview of state and local policymakers. Given the scale of the housing affordability crisis nationwide and the need for federal action, Congress has recently taken steps to encourage commonsense solutions to boost supply in ways that more adequately meet the housing needs of the market. This includes enacting two proposals that JPMorganChase has long supported: a significant increase in the Low Income Housing Tax Credit (LIHTC) and updates to the bond financing test, both of which are key tools for building and preserving affordable rental housing; as well as a permanent extension of the New Markets Tax Credit, a successful community investment tool. Congress is now building on these impactful supply-side investments by incentivizing state and local governments to reduce barriers to housing production.

The Renewing Opportunity in the American Dream (ROAD) to Housing Act passed out of the Senate Banking Committee in July 2025 with unanimous support from all 24 members of the Committee. Led by Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), this comprehensive effort includes 27 proposals that aim to increase housing supply for populations that need it most, improve quality of life for more families, and provide economic security in communities across the nation. This bipartisan support signals not only strong momentum to tackle the nation’s housing affordability challenges but also reflects increased attention on the federal government’s role in increasing entry-level and workforce housing supply.

“JPMorganChase commends the bipartisan momentum to advance the ROAD to Housing Act and address the nation’s housing affordability challenges,” said Heather Higginbottom, Head of Research, Policy & Insights for Corporate Responsibility at JPMorganChase. “Across the country, our partners and clients consistently share that the high costs of building and maintaining housing is slowing local economic growth, straining household budgets, and making it harder for businesses to attract and retain a quality workforce. We know that making it easier to build a wider variety of housing types in all corners of the country will support JPMorganChase’s goal to fuel local economic growth.”

As a leading investor and lender in housing development across the country, JPMorganChase is deeply aware of the barriers—and opportunities—to increasing housing supply. JPMorganChase has previously supported a number of the provisions included in the ROAD to Housing Act and is eager to see this renewed support from members of Congress. As lawmakers consider comprehensive housing legislation in the 119^th Congress, the following provisions included in the ROAD to Housing Act have the potential to increase the speed, efficiency, and affordability of housing development for young families to older Americans across the country.

Incentivize states and localities to adopt pro-growth housing policies.

• The Housing Supply Framework Act requires the Department of Housing and Urban Development (HUD) to publish guidance and best practices for state and local zoning to support production of adequate housing to meet local and regional needs.
• The Accelerating Home Building Act establishes a HUD grant program to help communities establish pre-approved housing designs to address local needs with expedited construction.
• The Build Now Act incentivizes housing development by increasing or decreasing Community Development Block Grant (CDBG) funding levels based on whether jurisdictions are increasing their housing growth. Exceptions are incorporated for communities with low housing demand and signs of economic distress, have experienced recent natural disasters, or do not have control over zoning and permitting.
• The Innovation Fund creates a competitive grant program for localities that have increased housing supply, enabling funds for community development, transportation, water projects, and other housing expansion activities.

Streamlines costly and time-intensive federal review processes.

• The Better Use of Intergovernmental and Local Development Housing Act provides HUD with the ability to delegate and coordinate National Environmental Protection Act (NEPA) reviews and gives HUD more flexibility in the review process, and the Unlocking Housing Supply Through Streamlined and Modernized Reviews Act modernizes the NEPA review process for HUD-funded projects to allow certain developments to be subject to more tailored and streamlined environmental reviews. 
• The Streamlining Rural Housing Act  directs HUD and USDA to coordinate on joint environmental review for housing projects funded by both agencies.  
• The HUD-USDA-VA Interagency Coordination Act directs HUD, USDA, and VA to identify areas for collaboration to streamline and improve housing program implementation, and the Requiring Annual Testimony and Oversight from Housing Regulators requires annual testimony on housing and community development issues from the heads of HUD, Federal Housing Administration, Ginnie Mae, USDA’s Rural Housing Service, Federal Housing Finance Agency, and Veterans Administration (VA) Loan Guaranty Service. JPMorganChase has long supported a coordinated interagency housing strategy and these proposals signal a positive step towards greater collaboration.

Strengthens effective housing programs through increased clarity and commonsense improvements.

• The HOME Investment Partnership Reauthorization Act reauthorizes HUD’s HOME program, which provides critical grant funds to states and localities that serve as a valuable source of financing for affordable housing.
• The PRICE Act authorizes HUD’s Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program, which was established in 2022, and provides competitive awards to nonprofit organizations that invest in manufactured housing communities. The Housing Supply Expansion Act updates the definition of manufactured housing to remove the permanent chassis requirement, allowing for more manufactured housing innovation and financing opportunities. Manufactured housing remains one of the primary methods of delivering affordable homeownership supply.
• The Rental Assistance Demonstration (RAD) Program Act lifts the RAD cap and codifies tenant protections to allow additional reinvestment in deteriorating public housing stock.
• The Helping More Families Save Act establishes a pilot program to automatically enroll families in HUD’s Family Self-Sufficiency (FSS) program and removing other barriers to enrollment. JPMorgan Chase believes FSS is an effective tool with potential to help millions of lower-income, rent subsidized families build savings, reduce their reliance on federal support, and pursue greater economic mobility.
• The Build More Housing Near Transit Act incents pro-housing policies along transit lines by offering federal benefits to localities that legalize new housing near stations, including by removing expensive parking mandates, streamlining approval processes, allowing smaller lot sizes, and raising height limits to support workforce housing development.
• The Community Investment and Prosperity Act increases the Public Welfare Investment (PWI) cap for certain regulated banks from 15% to 20%, allowing some banks to increase their investments in affordable housing.  
• The Appraisal Industry Improvement Act helps bolster the appraisal workforce by allowing both licensed and credentialed appraisers to conduct appraisals for FHA-insured mortgage lending.
• The Reforming Disaster Recovery Act permanently authorizes the Community Development Block Grant-Disaster Recovery (CDBG-DR) program and establishes an Office of Disaster Management and Resiliency within HUD to administer it. This would allow for greater consistency and transparency in the allocation of federal disaster relief.
• The Rural Housing Service Reform Act enacts reforms to Rural Housing Service programs, including allowing decoupling of rental assistance from maturing USDA mortgages to preserve affordable housing in rural areas.

The ROAD to Housing Act has significant bipartisan support to tackle one of the most pressing challenges impacting household financial well-being and economic productivity. In particular, the emphasis on federal solutions to encourage targeted and impactful land use and zoning changes at the state and local levels reflects a growing understanding that structural changes are needed across all levels of government. The JPMorganChase PolicyCenter will be sharing additional state and local policy recommendations to increase housing supply in a manner that best fits community needs.

JPMorganChase looks forward to continuing to work with lawmakers to strengthen the package and advance commonsense housing solutions that help bolster the entire housing ecosystem.