Trump called it a yawner, but here’s how a new federal housing law could help California | Opinion

Behind all the attention focused on President Donald Trump’s refusal to sign it, a new federal housing law called the 21st Century ROAD to Housing Act is heavy on programs to make it easier to build homes, help homeless veterans get off the streets and speed up disaster funding for communities hit by fires and floods.

There is no big pile of money to implement the new federal housing law, and it will be up to future Congresses to fund it. That’s a red flag.

It’s also easy to be cynical as members of Congress applaud themselves for passing the new federal housing bill, as if doing their jobs was a momentous act.

But news stories about Trump’s petulance and weakness hid a surprise: The 21st Century Road to Housing Act contains programs that could help California.

“The impact from ROAD likely won’t be felt for a couple of years, as developers decide how to navigate it,” said David Garcia, deputy director of policy at UC Berkeley’s Terner Center for Housing Innovation.

“Over the long term, it will have a positive impact.”

Here are six under-radar-programs within the new federal housing law that could make a difference in California’s housing crisis, if they are supported and funded:

Cities and counties can use CDBG funds to build affordable housing

Under Housing and Urban Development (HUD) rules, until now cities could use Community Development Block Grants to purchase property, rehab buildings, add roads, sewer and water systems and other infrastructure and finance economic development projects —but not to build houses.

That’s changing. Under the ROAD Act, in the future 20% of CDBG money can be used to build affordable units.

That has significant potential; the city of Sacramento received $4.6 million in CDBG funds in 2025-25; Fresno received $7 million; Modesto, $1.8 million; and San Luis Obispo County (including cities) $1.6 million.

They can be docked (or rewarded) depending on how many housing units are built

California requires cities and counties to zone for a certain number of additional housing units of various types, from acutely low income to above-moderate. But there is no mandate that the homes actually be built.

Federal legislation offers an incentive to certain jurisdictions that improve their rate of housing construction. They can receive CDBG bonuses for accelerated home building and small reductions if they fall behind. Sacramento and Fresno stand to benefit, based on the number of new units that have been built.

Manufactured housing no longer has to be ‘mobile’

In what Vox called “an absurdly simple fix” the law does away with an obsolete requirement that manufactured homes be built on permanent chassis, so they can be moved from place to place. That rarely happens anymore.

This particular bill was introduced by Sen. Alex Padilla of California. Good for him, but why did take it take 50 years?

Help for homeless veterans

In another bill from Padilla, veterans receiving disability benefits will no longer have to count that as income when they apply for federal housing assistance, making it easier for them to qualify.

Disaster relief for stricken communities could be expedited — at least for a while

Instead of requiring piece-meal approval of disaster aid every time a fire, flood or hurricane hits, a long-term disaster relief fund will be established, along with standing rules governing how the money is allocated and how it can be spent. This could theoretically speed up payments and make them more predictable. But there’s a catch: The fund is authorized for just three years.

It provides more flexibility for emergency homeless services

Under old rules, communities that receive Emergency Homeless Solutions grants can spend no more than 60% on emergency shelter beds and street outreach. They can now request a waiver from that cap. (Sacramento and Fresno are among the recipients of EHS grants.)

Empty promises or a blueprint for lasting change?

The ROAD Act is a good start, but getting it through Congress and escaping a presidential veto could turn out to be the easiest leg of this journey.

Much will depend on buy-in from local governments, housing developers, lenders, nonprofit agencies and, of course, neighbors who have the political muscle to make or break a project.

Then there’s the matter of funding. If Congress wants this to succeed, it’s going to have to invest some real money, not just a few million here and there for pilot programs. Otherwise, it will end up like so many other ambitious housing plans — a document full of good ideas that never go anywhere.

We cannot squander another opportunity.

With proper care and handling, the ROAD Act has the potential to go down as landmark legislation that helped reverse the housing crisis.

No presidential stamp of approval required. .

This story was originally published July 15, 2026 at 5:00 AM with the headline "Trump called it a yawner, but here’s how a new federal housing law could help California | Opinion."