Touted by lawmakers as the most sweeping housing legislation in decades, the bill aims to reduce housing costs and increase supply through nearly 50 provisions  

“The 21st Century ROAD to Housing Act will help increase the nation’s housing supply by reducing regulatory barriers and encouraging local governments to reform zoning and land-use policies that have limited home building,” said Bill Owens, chairman of the National Association of Home Builders. 

The fate of the bill, however, remains uncertain. On June 24, President Donald Trump postponed a signing ceremony of the bill, indicating he wouldn’t do so unless Congress passed the Safeguard American Voter Eligibility Act. 

If enacted, certain provisions could support the HVAC industry at a time when rising costs and economic uncertainty are creating challenges for businesses. 

Streamlined Emergency Repairs 

In Section 206, a provision would streamline emergency home repairs or replacements “of HVAC, hot water heaters, and other necessary existing utilities required under applicable law.”  

HUD-assisted projects often run into environmental review delays. With this provision, these housing-related activities will be subject to “exempt activities” regulations under the Code of Federal Regulations, meaning they don’t have to comply with reviews under the National Environmental Policy Act.  

As a result, emergency HVAC services can be expedited, resulting in faster approvals and payment cycles while creating more emergency work for HUD-assisted housing. 

Whole-Home Repairs 

Section 202 of the bill authorizes a pilot program that will provide grants for whole-home repairs for eligible homeowners and landlords, among which include “energy and water efficiency, resilience, and weatherization” modifications or repairs. 

Given the broad language, this could include HVAC replacements, heat pump installations, ductwork improvements, and ventilation upgrades. The grants would cover eligible projects not already covered by federal home repair programs, as well as forgivable loans for landlords to implement similar projects. 

“We are supportive of the bill but also of the long list of tax credits and grants to help homeowners, especially first-time buyers, to retrofit and upgrade HVAC and related systems to drive down costs of owning and operating a home,” said Stan Kolbe, executive director of government and political affairs for Sheet Metal and Air Conditioning Contractors National Association. 

Multiple associations have lauded the bill, from the National Housing Conference and American Planning Association to the U.S. Chamber of Commerce. AHRI and HARDI declined to comment on the legislation. 

Temperature Sensor Program 

Section 106 establishes the Temperature Sensor Pilot Program, which would provide grants to public housing agencies and owners of federally assisted rental properties to purchase and install temperature sensors. 

These sensors would be internet-capable reporting devices that measure ambient air temperature.  

The program is intended to ensure residential units remain in compliance with temperature requirements. The bill says that the program must include a “diverse range of participants that represent different geographic regions, climate regions, unit sizes, and types of housing.” 

For HVAC contractors, the provision underscores the growing adoption of remote monitoring, connected controls, and technologies such as smart thermostats. 

More Affordable Housing 

Put simply, the bill seeks to encourage additional housing. It calls for expanding Community Development Block Grant eligibility to include new construction of affordable housing. That equates to more HVAC equipment sales, more new construction, and increased demand for multifamily systems. 

Other provisions aim to convert vacant commercial buildings into housing, such as office buildings. Similarly, the Revitalizing Empty Structures Into Desirable Environments (RESIDE) program would convert vacant and abandoned structures such as warehouses, factories, malls, and hotels into residential spaces. 

The conversion of these buildings would likely require HVAC redesigns, new ventilation, heat pump conversions, and code compliance upgrades, bolstering the retrofit market. 

“We have been tracking this and certainly see it as a sign that Congress can work together to pass significant legislation,” said Brian Turmail, vice president of association and industry image for Associated General Contractors of America. “We hope this bill stimulates new demand for the kind of multifamily construction that many of our members build.” 

Meanwhile, multiple provisions seek to expand manufactured housing growth.  

Among them are new minimum energy efficiency standards that HUD would update every three years, and a grant program for communities that counts weatherization, reduced utility costs, reconstruction, repair, replacement, and infrastructure as eligible activities. 

Faster Reviews, Faster Projects 

The bill has attempted to streamline review processes to expedite housing projects, as previously mentioned. Throughout the legislation, there are provisions to eliminate duplicate reviews, exempt certain infill projects, and expand exclusion categories. 

Section 209 creates a grant program for communities to generate “pattern books” of preapproved housing designs. This would let builders move forward without as many approvals to meet code requirements. 

These efforts may not directly affect HVAC contractors, but they could help accelerate construction and renovation projects

“While the bill gained near universal approval, it does include a lot of encouragement but not mandates upon local officials to produce more credit, funding, and zoning reforms,” said Kolbe. “After all, housing and zoning are prized and well-protected local authorities with variances from town to town and state to state.” 

What the Bill Doesn’t Address 

As encompassing as the bill is, there aren’t any provisions that address the labor shortage impacting the construction industry. 

“Congress needs to have this bill signed into law, but then needs to address home ownership affordability and operational costs with a range of tax credits for high efficiency upgrades and retrofits directly related to slashing utility bills,” said Kolbe. 

The bill doesn’t add any heat pump, electrification, or refrigerant mandates to the additional regulations HVAC contractors are already contending with in today’s market.  

No specific HVAC tax credits are included in the bill. 

The ROAD to Housing Hits a Speedbump 

Hours before a signing ceremony on June 24, Trump posted the following on social media: “Today’s Housing News Conference and Signing is hereby canceled until such time as we pass the desperately needed SAVE AMERICA ACT, which I consider to be a National Emergency.” 

According to reporting from The Hill, multiple Senate Republicans expressed concern over Trump’s refusal to sign the bill when he previously signaled his endorsement for it. Sen. Susan Collins told The Hill that Trump’s threat “makes no sense” because the bill would address core concerns of voters before the midterm elections. 

If the president doesn’t sign the bill or veto it while Congress is in session, the bill will become law after 10 days. If he vetoes it, there could be enough support in Congress to override the veto. 

“If the President vetoes the housing bill, it seems based on the overwhelming support for it and the votes recorded, it would be a strong candidate for an override,” said Kolbe. “If the Speaker tries to bottle the vote in procedural gymnastics, adjourn the House, or use the July 4 or August break for stalling, the House supporters of the bill could still manage a vote soon enough to override.”