Banking and Finance Law Daily Wrap Up, COMMUNITY DEVELOPMENT—Financial Services Committee leaders introduce bipartisan housing bill amendment, (May 20, 2026)

By Jonathan Anderson

Part of the legislation seeks to update banking regulations to expand local lending.

Leaders of the House Financial Services Committee are proposing bipartisan legislation to improve access to housing. Supporters of the bill, H. Res. 1299, a resolution amending H.R. 6644, the “21st Century Road to Housing Act,” say that it would streamline housing production and make housing more affordable by updating programs, removing certain federal requirements, and increasing local flexibility. These actions include modernizing programs administered by the U.S. Department of Housing and Urban Development (HUD) and updating banking regulations to expand local lending and enhance community banking organizations.

Regulatory barriers. The office of Rep. French Hill (R-Ark.), chairman of the Financial Services Committee, said the legislation contains provisions that “remove unnecessary regulatory barriers to streamline housing development and affordability.” These provisions include allowing the use of pre-approved home designs to expedite permitting, modernizing and streamlining federal and local processes, and strengthening local housing operations.

HUD programs. The bill also seeks to modernize HUD programs by speeding up the homebuilding process and expanding financial opportunities, according to a section-by-section summary. Rules for manufactured homes would be updated, and HUD would become the lead authority on standards for such homes. The measure also calls on modernizing the HOME Program, the largest federal block grant program for states to increase the supply of affordable housing. Further, the bill seeks to exempt small-scale housing developments from what Hill’s office described as “burdensome federal environmental reviews.”

Community banking organizations. The proposal updates banking regulations that Hill’s office said would expand local lending. These provisions would streamline bank exams and thresholds, expand community and rural banks’ access to stable deposits, and support rural banks by providing regulators with flexibility to handle failures without harming local access to banking.

Hill statement. “This bill prioritizes American families by expanding homeownership, enhancing affordability, reducing burdensome regulations that drive up costs, and increasing housing supply nationwide,” Hill said.

Waters statement. Rep. Maxine Waters (D-CA), ranking member of the Financial Services Committee, spoke about the legislation on the House floor. “Our housing bill is the most comprehensive housing reform bill in a generation, and is a huge step towards finally addressing the affordable housing and homelessness crises in our country,” Waters said.

New Democrat Coalition endorsement. The bipartisan proposal also earned an endorsement from the New Democrat Coalition.

LegislativeActivity: BankingOperations CommunityDevelopment Loans Mortgages