Federal Fixes: How Congress Can Tackle the Housing Supply Crisis

A blog empowering Hispanic homeownership through advocacy and policy.

By Elizabeth Nimmons
May 22, 2025

In the first installment of NAHREP’s 2025 Policy Priorities Webinar Series, David Garcia, Policy Director at Up for Growth, discussed the importance of zoning and land-use reform in addressing the housing supply and affordability crisis. Garcia pointed out that while these reforms are typically thought of as state and local decisions, that does not mean the federal government cannot also make an impact. Like Up for Growth, NAHREP believes the federal government has a key role to play in addressing the supply crisis. So, what can the federal government do to increase housing supply? And, what legislation is on the table for Congress to support?

What Should the Federal Government Do to Increase Supply?

There are a number of ways that the federal government can directly support initiatives to increase housing supply, both through funding and through technical support of state and local governments:

• Provide incentives and support for local reforms. The federal government can play an important role in encouraging and supporting those local governments that wish to reform their zoning and land-use laws by offering funding and technical support to staff working to engage in comprehensive planning reforms. In addition, many smaller cities and rural communities do not have the staff or resources to do this work, and the federal government can help level the playing field for these communities.
• Allot funding to encourage affordable housing development. Federal housing programs like the Low-Income Housing Tax Credit (LIHTC) provide critical funding for the development of new affordable housing. By increasing the amount of money allotted to such programs, Congress can continue to support developers working to address the supply and affordability crisis.
• Support infrastructure necessary for housing development. Many communities struggle to develop new housing not only because of zoning and land-use laws, but also because of insufficient infrastructure like roads, water and sewer systems, and transit access. The federal government can help close this gap by investing in infrastructure projects that directly contribute to the development of new homes.
• Promote innovation and cross-sector collaboration. Federal agencies can support state and local governments and planning committees by funding research and innovation to better understand the best practices for encouraging the development of affordable housing. By funding research and partnerships across sectors (e.g., housing and transportation, housing and workforce, etc.), the federal government can better support states and localities in their efforts to introduce reform.

Critical Federal Legislation

Over the past several years, a number of bills have been introduced in both the House and Senate that aim to increase housing supply across the country, both by funding the development of affordable housing and by supporting state and local governments in their efforts reform zoning and land-use policies. NAHREP calls on Congress to support each of the following bills, which have all garnered significant bipartisan support:

1. The Yes In My Backyard (YIMBY) Act: Originally introduced in 2019, the YIMBY Act would encourage communities to remove restrictive zoning and land-use policies by requiring those jurisdictions receiving federal Community Development Block Grant (CDBG) funding to report their efforts to reform restrictive zoning policies and promote housing development. By doing so, the YIMBY Act aims to encourage housing development and increase transparency around zoning reform efforts.
2. The Housing Supply Frameworks Act: The Housing Supply Frameworks Act was introduced in both the House and Senate last month with the goal of encouraging communities to adopt zoning reforms by requiring HUD to convene a task force to develop best practices on zoning and land-use reform. The bill would also provide funding for those state and local governments working to address barriers to new housing development.
3. The Neighborhood Homes Investment Act: Reintroduced last month, the Neighborhood Homes Investment Act would help address the supply crisis by providing a federal tax credit to developers, lenders, and local governments building and rehabilitating single-family homes in eligible underinvested communities. The bill aims to build and preserve 500,000 homes over the course of 10 years.

What Can You Do to Help?

While zoning and land-use policy is crafted and reformed at the local level, the federal government has the capability to encourage and incentivize pro-housing policies. Understanding these federal efforts is essential for NAHREP members—not only to stay informed, but to effectively advocate for the policies that will expand sustainable Hispanic homeownership. Whether it’s supporting the YIMBY Act’s push for transparency, backing the Housing Supply Frameworks Act’s establishment of an expert task force, or championing the Neighborhood Homes Investment Act’s focus on community revitalization, your voice matters. Together, we can make sure housing policy works for everyone—starting at the federal level and reaching into every neighborhood.

Ready to take a deeper dive into another one of NAHREP’s top policy priorities? Join us for the second installment of our 2025 Policy Priorities Webinar Series:

Building the American Dream: Immigration’s Role in Solving the Housing Crisis

Date: Tuesday, June 17 at 10am PT/12pm CT/1pm ET

Immigrants are essential to the housing ecosystem in the United States, both as builders and as occupants. Yet, restrictive immigration policies and labor shortages are crippling the nation’s ability to meet growing housing demand. In the second installment of NAHREP’s 2025 Policy Priorities Webinar Series, join us for a conversation with Rebecca Shi, Chief Executive Officer of the American Business Immigration Coalition (ABIC), to explore the critical connection between immigration reform and housing supply. We’ll discuss how commonsense immigration policies can strengthen the construction workforce, stabilize housing markets, and expand homeownership opportunities for Latino families.