What Comes After the ROAD Act? The enactment of the ROAD Act answered some important questions about federal housing policy, but it also raised new ones. This month, we look at what comes next, from HUD’s regulatory agenda to a proposal that could reshape FHA flood-risk requirements.

Here are three developments we’re watching in Washington, D.C.

• 1. ROAD Act May Set the Stage for More Housing Action on Capitol Hill
• 2. HUD Proposes Rolling Back Flood-Risk Requirements
• 3. HUD’s Fall 2026 Agenda Lines Up 5 Major Regulatory Actions

1. ROAD Act May Set the Stage for More Housing Action on Capitol Hill

The story: The 21st Century ROAD to Housing Act, which became law earlier this month, may be just the beginning of this year’s housing policy story. Lawmakers and housing groups are already looking to whether bipartisan momentum can carry into additional housing measures before November’s midterm elections. With affordability still a major voter concern, the hope is that the bipartisan support behind the ROAD Act creates an opening for additional action on rental assistance, construction costs, tax policy, and other issues the legislation does not fully address.

• The law focuses primarily on increasing supply through regulatory changes and incentives rather than providing significant new funding for rental assistance or other housing programs.
• Housing groups are backing separate tax proposals, including legislation that would increase the capital-gains exclusion for homeowners who sell their properties. Supporters say the change could bring more existing homes to market.
• Lawmakers have also raised construction labor, material costs and federal sourcing, and wage requirements as possible subjects for further debate.

“This bill becoming law is a genuine milestone—and I don’t use that word lightly. Getting Congress to move on housing supply and affordability has been a long time coming, and the American people made clear they were ready for it.”

– Dennis Shea, Executive Vice President of the Bipartisan Policy Center, told the BBC

The follow-up: Congress has a limited legislative window before midterm campaigning intensifies, and no additional housing package has a guaranteed path to passage. Lawmakers must also oversee implementation of the ROAD Act as HUD, Treasury, and other agencies develop the rules and guidance needed to put its provisions into practice.

The bottom line: The biggest win the ROAD Act delivers for FHA multifamily borrowers is updated loan limits, which haven’t been re-evaluated since 2003. Watch where the revised loan limits land, as they could expand financing capacity for many projects constrained by the previous limits. Also important is whether Congress advances measures addressing rental support and development costs, which could affect project feasibility.

2. HUD Proposes Rolling Back Flood-Risk Requirements

The story: HUD has proposed rescinding most of the Federal Flood Risk Management Standard (FFRMS) requirements it adopted in 2024. The proposal would largely return HUD to its pre-2024 floodplain rules, which relied mainly on FEMA’s mapped floodplains and HUD’s existing environmental review process (which has also changed). HUD says the rollback could reduce costs and delays, while critics say it could weaken protections against future flood risk.

• The proposal follows HUD’s narrower action in 2025 to rescind the FFRMS requirements for FHA new construction projects.
• HUD estimates the proposed rescission could bring annual construction-cost savings of $4.5 million to $85 million.

• HUD would retain selected flexibilities, including the option to skip an alternative-site analysis for some FHA multifamily and healthcare projects.

“MAP lenders work closely with borrowers to protect properties and residents from severe weather events. However, the FFRMS requirements are simply not ready for prime time. They rely on flood maps that have yet to be developed and on undefined measures. We strongly support rescinding the rule and reviewing practices and policies that can appropriately address climate concerns.”

– Megan Booth, Vice President of Commercial Real Estate Finance Policy, Mortgage Bankers Association (MBA)

The follow-up: HUD will accept comments on the proposal through Sept. 8, then review the feedback before deciding whether to issue a final rule. Until HUD completes that process, the 2024 requirements remain in place.

The bottom line: The proposal marks a significant shift from HUD’s 2024 flood-risk standard and would narrow the federal requirements applied to many HUD-supported properties.

3. HUD’s Fall 2026 Agenda Lines Up 5Major Regulatory Actions

The story: Beyond recent legislative developments, HUD is also signaling where it intends to focus its regulatory efforts through the remainder of the year. Its fall 2026 agenda points to a busy few months for housing regulation. Five pending actions could reshape assisted-housing operations, fair housing requirements, and environmental reviews. Most are targeted for September or October, although those dates can shift.

• Work requirements and time limits: would allow certain HUD-assisted housing providers to adopt work requirements and lifetime limits for eligible adults
• Affirmative Fair Housing Marketing: would rescind required marketing plans for FHA-insured and HUD-assisted properties
• 30-day nonpayment notices: would revoke the federal notice period before lease termination and return to program-specific and state or local rules
• Environmental regulations: would streamline HUD’s environmental review process
• Affirmatively Furthering Fair Housing: would revise fair housing planning requirements without restoring a single prescribed process

The follow-up: HUD still must publish the rules in the Federal Register. Those notices will set the final requirements, effective dates, and transition periods.

The bottom line: The agenda signals fewer federal process requirements alongside major changes to assisted-housing and fair housing policy. The real impact will depend on the final text of the rules.

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