Congress has passed a major bipartisan federal housing reform package (H.R. 6644) that includes several provisions of interest to county governments.
According to the National Association of Counties (NACo), the U.S. House of Representatives approved the 21st Century ROAD to Housing Act on June 23, 2026, following Senate passage on June 22. The legislation now heads to the President’s desk.
The legislation as a major victory for counties because it includes provisions intended to improve access to disaster recovery funding, protect community development resources and expand flexibility for locally administered housing programs.
One significant provision would authorize the Community Development Block Grant–Disaster Recovery (CDBG-DR) program for three years. CDBG-DR funding supports long-term housing recovery, infrastructure restoration and economic revitalization following qualifying disasters. Under current law, CDBG-DR does not have standing authorization or an annual budget and is generally appropriated by Congress on a case-by-case basis after disasters occur. NACo reports that this process can delay funding for a year or more.
The legislation also includes changes to the Home Investment Partnerships (HOME) program. According to NACo, the bill would raise income eligibility for HOME projects to help communities address workforce housing needs. It would also allow certain grantees that do not receive direct Community Development Block Grant (CDBG) entitlement funds to use HOME funds for housing-adjacent infrastructure.
The bill includes provisions related to CDBG funding and housing production. NACo had previously expressed concerns about proposals that would tie CDBG funding to local housing production, creating potential uncertainty for counties that rely on CDBG funds for multi-year housing, infrastructure and community development projects. NACo reports that the final bill includes exemptions intended to narrow the number of CDBG recipients affected, including exemptions related to disaster declarations, housing market conditions, vacancy rates and limited zoning or land-use authority.
The legislation also addresses large institutional investor activity in the housing market by limiting ownership or financial control for investors owning more than 350 single-family homes. In addition, the bill increases the public welfare investment cap for banks, which NACo indicates could help unlock additional private investment for affordable housing and community development projects.
For Illinois counties, the legislation is relevant to housing affordability, community development, disaster recovery, infrastructure restoration and local program administration. Counties involved in housing, planning, economic development, emergency management or community development programs may wish to monitor federal implementation guidance if the bill is signed into law.
ISACo will continue to monitor NACo’s analysis and federal agency implementation of the housing reform package.