Nebraska politicians, housing advocates say new federal legislation will boost home supply

OMAHA, Neb. —

A sweeping bipartisan federal housing law co-authored by Nebraska Republican Rep. Mike Flood is being touted by supporters as a major step toward increasing the nation’s housing supply, though housing experts say its effects are likely to take years to materialize.

The 21st Century Road to Housing Act took effect over the weekend after becoming law without President Donald Trump’s signature.

“It’s a huge win for America, and it’s a huge win for Nebraska,” Flood said.

The legislation took policy cues from both sides of the political aisle.

“This is a rare win in Washington where we truly found bipartisan compromise on an issue that is so important to so many,” Flood said.

The legislation includes a wide range of housing reforms. Among its provisions are limits on certain corporate ownership of homes, changes intended to streamline federal environmental reviews for housing projects, and reforms aimed at expanding the manufactured housing industry.

Flood said one provision eliminating a federal chassis requirement for some manufactured homes could significantly reduce construction costs.

“When you cut out that chassis requirement, you are essentially cutting 30% of the cost,” he said. “I think this is going to be a boom for the manufactured housing industry.”

Housing advocates welcomed the legislation but cautioned that its benefits will take time to reach communities.

“I think it will help the community over a period of time,” said Jody Holston, executive director of Front Porch Investment. “It’s going to take a while for all of these tools to be implemented.”

Holston said the legislation’s long-term success will depend on increasing the nation’s housing supply.

“The goal is all of these tools are weaving together, and it really is about supply,” Holston said. “It’s about increasing production overall, putting a focus on homeownership.”

Flood said some provisions could have more immediate effects. He pointed to changes allowing Community Development Block Grant funding to be used for home construction, a use that previously had not been permitted for decades.

“The mayor of Omaha gets an entitlement grant from the Community Development Block Grant program,” Flood said. “Under the law that we passed, effective immediately, one of the allowable uses for the first time in decades is home building.”

Flood said local governments will continue to play the primary role in creating higher-density development, but he said federal incentives will encourage communities to expand their housing supply over time.