Senate bill aims to increase affordable housing supply. Here's what renters, home buyers need to know

UNITED STATES - JULY 29: From left, Chairman Tim Scott, R-S.C., Sen

Tina Smith, D-Minn., and ranking member Sen

Tim Scott, R-S.C., chairman of the committee, and Sen

Elizabeth Warren, D-Mass., a ranking member, is the first bipartisan markup for housing in over a decade

The median sale price in June was $435,000 — a record high for the month, according to the National Association of Realtors

Interest rates have also remained elevated, keeping sellers from listing their s and potential buyers on the sidelines."Many households aren't even forming because they can't afford to own or even rent," said Mark Zandi, chief economist at Moody's Analytics

In 2023, half of renters in the U.S., or 22.6 million tenants, were "cost burdened," meaning they were spending more than 30% of their income on rent and utilities, according to a recent report by the Joint Center for Housing Studies at Harvard University.watch now10:5710:57The disappearance of the starter and Digital Original While industry groups and local elected officials have expressed support for the housing package, it's "not a panacea," said Alys Cohen, director of federal housing advocacy at the National Consumer Law Center

What's more, the bulk of the visions are aimed at making the cess of building more housing easier for local governments, changes that could eventually add more supply and ease prices

Still, some visions in the bill directly impact individuals and communities."It's a series of measures, some of which are bold, some of which are modest, some of which will be helpful, some of which may be harmful

The hope is that overall, it's a significant step forward," Cohen said.'A potpourri of different efforts'The ROAD to Housing Act is "a potpourri of different efforts" to increase the supply of housing, Zandi said

A vision in the housing package would simplify the construction of manufactured housing by eliminating the federal requirement of a permanent chassis, or foundation, and expanding lending and financing options.Formerly known as mobile s, manufactured housing consists of factory-built s that are transported in one or more

As of now, it must be installed onto a permanent chassis, according to the Department of Housing and Urban Development.Such s are more affordable to make and sell, and are in the South, "where the housing shortages are particularly acute," said Zandi

With a few changes in lending and regulation, "we might see more manufactured housing, and that could be very, very helpful for imving ownership," he said.Other visions could impact individuals more directly, said Cohen

For example, the bill permanently authorizes the Community Development Block Grant Disaster Recovery gram by the HUD, which vides resources to states, tribes and communities to rebuild housing after a natural disaster

Individuals can get aid from the Federal Emergency Management Agency after a disaster, but if they need funds to rebuild, the CDBG-DR gram vides the necessary funds

As of now, Congress has to authorize it regularly, or after a disaster, said Cohen.It is "one of the most significant accomplishments" of the package, said Cohen.It's a series of measures, some of which are bold, some of which are modest, some of which will be helpful, some of which may be harmful

The hope is that overall, it's a significant step forward.Alys Cohendirector of federal housing advocacy at the National Consumer Law CenterAnother vision helps low-income and rural owners who have USDA direct loan mortgages to qualify for financial relief

When people have mortgages backed by the government, if they need a payment reduction on their mortgage, one of the ways to do that is by extending the term of the loan, said Cohen

Currently, direct loan borrowers with USDA loans do not have that option. "This bill fixes that blem," she said

However, it remains un if the bill in its totality "will meet the needs of many of the people who need it the most," such as "underserved communities and households of color," Cohen said.