President Trump has issued executive orders aimed at reducing regulatory barriers to residential construction and expanding access to mortgage credit.
Some of the key provisions of the “Removing Regulatory Barriers to Affordable Home Construction” and “Promoting Access to Mortgage Credit” executive orders include:
- Directing the Environmental Protection Agency and the U.S. Army Corps of Engineers to revise stormwater, wetlands, and other water-related permitting requirements to reduce building costs and increase insurability;
- Directing the secretaries of Commerce, the Department of Housing and Urban Development (HUD), and Transportation as well as the director of the Federal Housing Finance Agency (FHFA) to eliminate burdensome rules and reform programs that constrain residential development and affordability;
- Directing the secretaries of the U.S. Department of Agriculture, HUD, and Energy as well as the FHFA director to eliminate or reform overly burdensome energy, water, and alternative-energy requirements for housing;
- Directing the Advisory Council on Historic Preservation to develop guidance simplifying historic preservation reviews to reduce barriers to creating housing;
- Directing federal agencies to provide incentives to state and local governments that adopt regulatory best practices to speed up permitting, curtail “green” building codes, reduce costly mandates, enable innovative construction methods, and extend residential development;
- Encouraging new-home construction by aligning Opportunity Zone incentives with New Markets Tax Credit and single-family programs; and
- Calling for federal banking regulators to revise supervisory guidance to support responsible construction lending by community banks, modernize appraisal regulations, and expand digital mortgage tools.
Industry associations applauded the orders.
“The National Housing Conference (NHC) supports efforts to reduce unnecessary regulatory barriers that slow housing production, limit access to mortgage credit, and increase costs for American families,” said NHC president and CEO David M. Dworkin. “The executive orders signed by President Trump highlight the importance of addressing both the supply and financing challenges that contribute to the nation’s housing affordability crisis.”
Dworkin added that overly complex permitting process, duplicative environmental reviews, and costly mandates can slow down construction and drive up costs for families.
“Taking a hard look at federal rules that delay development is an important step toward making it easier to build the homes our country needs while still maintaining the safeguards that protect communities,” he said.
The National Apartment Association (NAA) and National Multifamily Housing Council (NMHC) also shared their support.
“Sustainably addressing our nation’s housing shortage, which affects communities from every corner of our country, is one of the most pressing issues of our time,” said NAA president and CEO Bob Pinnegar. “NAA applauds President Trump and administration leaders for taking decisive action in their most recent executive order to remove key barriers to housing development. From streamlining permitting requirements and reducing regulatory barriers for new construction to promoting best practices that increase supply, these actions will help meet the need for 4.3 million new apartments by 2035. Our association looks forward to continued work with the administration to boost housing supply and ease affordability challenges for Americans.”
NMHC added that these actions will have meaningful positive results. It noted that these executive orders aimed at increasing housing supply and lowering costs share a similar goal with the Senate’s 21st Century ROAD to Housing Act; however, language around build-to-rent (BTR) housing in the bill is at odds with the president’s goal.
“Unfortunately, language inserted [into the 21st Century ROAD to Housing Act] at the last minute without stakeholder input would effectively eliminate the production of new BTR housing, which is a critical source for adding more housing to communities across the country,” the NMHC stated. “Put simply, this provision works against the president’s goal to boost new housing production and lower housing costs. NMHC urges policymakers to make changes to the bill that will allow for building more BTR housing for families, seniors, military households and others that want the freedom to choose from a variety of rental housing options.”
Mortgage Bankers Association (MBA) president and CEO Bob Broeksmit said his organization strongly supports addressing the structural challenges that drive up housing costs but also improving access to financing.
“We agree with the administration’s focus on addressing costly mortgage regulations that have increased costs and limited access to credit. MBA believes that those benefits should be available to every consumer, no matter which lender they choose,” he noted. “America’s housing finance system is the best in the world because it’s competitive. We support efforts to increase bank participation in mortgage lending and servicing, and the goal should be to revise overly burdensome rules for lenders of all sizes and business models. This includes credit unions that support their members and independent mortgage banks, who serve most Federal Housing Administration, Veterans Affairs, and Rural Housing borrowers, making homeownership possible for first-time buyers, low- and moderate-income families, veterans, and those living in rural communities.”