The largest bipartisan comprehensive housing legislation in decades became law last week, despite President Donald Trump’s refusal to sign the bill. But the new law is expected to have a small effect on combatting San Diego’s ongoing housing shortage.
The 21st Century ROAD to Housing Act contained a hodgepodge of legislation — including pieces prioritized by Rep. Juan Vargas and Rep. Scott Peters.
“The most effective way to lower housing costs is to increase housing supply,” Peters said at a press conference the day before the legislation became law. “The 21st Century ROAD to Housing Act is landmark federal legislation to increase housing supply and make housing more affordable for everyone.”
The package incorporated several of Peters’ legislative priorities, including the Housing Supply Expansion Act. The act removes a federal requirement that has made manufactured homes more expensive by requiring them to be built on a permanent frame.
Vargas co-authored another part of the package, the Credit Union Board Modernization Act. It reduces meeting requirements for well-run federal credit union boards by allowing them to meet every other month instead of monthly — reducing administrative burdens to devote more time and resources toward local consumers.
But anyone looking for immediate relief from the package’s passage should temper their expectations, said Alan Berube, a senior advisor at the Policy & Innovation Center.
“Given how long it took to get into this bind and given the state of politics today, it just suggests to me like ‘Oh it’s going to be a long, long road to get back to something more reasonable,’” he said.
Saad Asad, the communications manager for California YIMBY — a statewide group that advocates for increased housing production — said the bill could make a bigger difference in rural than urban areas.
“California is so big that some parts of the bill, or the provisions of the bill, will be more helpful to other parts of the state, but won’t be as helpful to San Diego or the more urban parts of the state,” he said.
Asad said the price of land in major cities like San Diego is the “crux of this issue.” But, he said the ROAD to Housing Act would help other areas in San Diego County.
“It’s much more helpful for rural states where the cost of land is a lot lower, and so now you’re really creating those home ownership opportunities,” he said. “But it’s also relevant for very rural parts of San Diego County.”
A major provision in the bill is the Housing Supply Framework Act, which requires the Department of Housing and Urban Development publish guidelines and best-practices to help states and local governments design effective zoning and land-use policies.
Mayor Todd Gloria, in his capacity as the president of the U.S. Conference of Mayors, has touted the federal action in national news outlets.
“This landmark law gives communities and mayors the tools we need to build more homes, increase supply, and deliver more affordable, accessible housing in the communities our residents call home,” Gloria said in a press release. “America’s mayors fought for this legislation from day one because we know the solution is simple: build more homes to lower costs. Now it’s time to deliver.”
San Diego has worked for years to ease the housing crisis — both under Gloria and his predecessor — by increasing housing production through up zoning and deregulation . And there’s some reason for optimism it’s starting to show results. A report in March from Zumper showed San Diego one bedroom apartment rents decreased by 5.6% from a year earlier, while two bedroom unit rents were down by 7.5%, coinciding with a 15% increase in active listings. Nonetheless, a USD report this spring found San Diego still had the country’s fifth most expensive housing market.
Two days after ROAD became federal law, Gov. Gavin Newsom signed a housing trailer bill as part of the state’s new budget aiming specifically at how California finances homes reserved for low-income residents. The bill looks to reduce the cost of building affordable housing by around $60,000 to $70,000 per unit through streamlined financing mechanisms and updates to impact fee policies.
“Every Californian deserves a place to call home, and through this work, we’re turning that goal into reality,” Newsom said in a press release after signing the state legislation.
The ROAD housing package passed Congress on June 23 and was set to be signed by the president the next day at a White House signing ceremony, but instead cancelled the ceremony and called the bill a “big yawn.”
When legislation is sent to the president’s desk from Congress, they have a 10-day deadline to either veto or sign the bill into law. If the president doesn’t take action – it becomes law.
Trump said he wouldn’t sign the expansive housing act, unless Congress passed the SAVE Act, a Trump priority that would revamp election administration nationwide.
“(The) centric housing bill, which is of minor importance compared to lower interest rates, and even FISA, pales in comparison to passing THE SAVE AMERICA ACT,” Trump said in a Truth Social post.
While the president’s attempt to use the issue as leverage was unsuccessful, efforts to improve housing affordability continue.
