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NDAA Passage Includes Housing Bill

October 21, 2025

While the ongoing government shutdown has kept the House out of town, the Senate advanced the annual National Defense Authorization Act (NDAA), which included bipartisan housing legislation. 

Why it matters: On July 29, the Senate Banking Committee unanimously advanced the ROAD to Housing Act of 2025, which includes a host of bipartisan provisions aimed at boosting housing supply. 

  • The bill was added to the NDAA, which passed the Senate 77-20 on Oct. 9.
  • A host of other policy amendments were included in NDAA, though not all of them are likely to be included when the House takes up the legislation. 

Go deeper: The ROAD to Housing Act incorporates many bipartisan priorities to reduce regulation and boost housing supply. However, the banking committee bill does not add funding for programs and will require the White House and congressional appropriators to deliver funds on key programs. 

  • Increasing Housing in Opportunity Zones: Enables the HUD Secretary to give added weight to applicants for competitive HUD grants that are located in, or primarily serve, designated Opportunity Zones to support housing preservation and construction.
  • Build More Housing Near Transit Act: Amends the Capital Investment Grants (CIG) program in the Federal Transit Administration to provide an optional increased rating in the Federal Transit Administration’s evaluation process for projects in areas that establish pro-housing policy near public transportation routes.
  • Revitalizing Empty Structures into Desirable Environments (RESIDE) Act: Creates a competitive pilot discretionary program within the HOME Investment Partnerships program if the annual appropriation exceeds $1.35 billion to convert vacant and abandoned buildings into attainable housing. However, the White House had proposed eliminating the HOME program in its budget. 
  • Housing Affordability Act: Requires the Federal Housing Administration (FHA) to study multifamily loan limits and then grants HUD rulemaking authority, with FHA input, to adjust those limits to better match housing market costs and enhance affordability.

What’s next: While the House Financial Services Committee is making housing a priority, it is unlikely the House will pass the ROAD to Housing Act as is.

  • The overall House strategy on NDAA is not yet clear, but certain provisions could be excluded when the House considers the bill.
  • House lawmakers will want to put their own stamp on any housing bill. Committee action has been delayed due to the shutdown. 
  • Housing legislation could eventually be included in a 2025 NDAA, but if the House significantly differs on a housing bill, the Senate may add it to other must-pass legislation. 

Contact David McCarthy (dmccarthy@crefc.org) with questions.

Contact 

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
NDAA Passage Includes Housing Bill
October 21, 2025
While the ongoing government shutdown has kept the House out of town, the Senate advanced the annual National Defense Authorization Act (NDAA), which included bipartisan housing legislation.

News

NY Gov. Vetoes Rent Minimum Bill

October 21, 2025

New York Governor Kathy Hochul (D) vetoed a bill that would have prohibited rent minimums in mortgage loan agreements.

  • The bills A174 and S1163 passed both chambers in mid-June. 
  • Hochul vetoed the bill on Oct. 16 after it was delivered to her a week earlier. 

Why it matters: There were concerns that the broad language in the bill could have caused unintended consequences for lenders’ rights, such as lease approvals. Hochul’s veto message echoed those concerns, among others. 
 
The key text of the bill’s language is below:

Rent Minimums Prohibited. No mortgagor on a loan secured primarily by an interest in real property shall be charged a fee, forced to default, or otherwise penalized by the mortgagee because the mortgagor did not set a high enough rent on all or part of such real property. All terms of a mortgage which would cause a mortgagor to be penalized for not setting a high enough rent shall be void and unenforceable as against public policy.

If it had been enacted, the provision would have taken effect immediately and would have been retroactive.

What’s next: While the veto is a positive development, the legislation could be revived by the authors in a future session. 

Contact David McCarthy (dmccarthy@crefc.org) with any questions.

Contact 

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
NY Gov. Vetoes Rent Minimum Bill
October 21, 2025
New York Governor Kathy Hochul (D) vetoed a bill that would have prohibited rent minimums in mortgage loan agreements.

News

Midterm Update: Redistricting Clouds Outlook

October 21, 2025

The 2026 midterm elections are one year away. Between shifting approval ratings and irregular mid-cycle redistricting there are many variables affecting the election next November.

  • The most important metric to measure the outcome is the President’s job approval rating.
  • Historically, when the President’s job approval is net-negative one year out from the midterm, the party in power has lost seats in the subsequent midterm elections one year later. President Trump’s approval rating is currently hovering around 40%.
  • On this metric alone, the Democrats should feel good about their chances to retake the House and gain seats in the Senate, however the picture is more muddled than that, as we detail below.

House: In 20 of the past 22 mid-term elections since 1938, the party that occupies the White House loses ground in the House after the midterms. However, with redistricting underway in states across the country, this trend could be dampened. 

Other states are expected to follow suit on both of the Democratic and Republican sides.

  • Vice President JD Vance has made two trips to Indiana to try and convince the state legislature to draw new maps to support the GOP. Governor Mike Braun (R-IN) has expressed openness to the proposal. The states congressional delegation has seven Republicans and two Democrats.
  • State representatives and governors from New York, Maryland, and Illinois have all expressed support for redistricting to varying degrees, however the feasibility of all theses states passing new maps in time for the 2026 election looks unlikely.
  • Redistricting is certain to have a tangible impact on the 2026 midterms. However, due to court challenges, ballot initiatives, state constitutions, and time constraints, the success of these efforts is unclear.

Why it matters: Mid-cycle redistricting is very uncommon and its effectiveness could vary by state. The timing of all this will be crucial, as it is now a race to get new maps approved to be utilized before the 2026 midterms.

Senate

The Senate map heading into 2026 strongly favors Republicans as they currently hold a 53-47 advantage with only a few vulnerable seats at this stage. Democrats would need to net four total seats to win a majority.

  • Key battlegrounds include North Carolina, Maine, Georgia, Michigan, and Ohio.
  • North Carolina, Maine and Ohio are the top pickup opportunities for Dems, and Senate Minority Leader Schumer landed all of his top recruits in all three states. Governor Roy Cooper (D-NC), Governor Janet Mills (D-ME), and Former Senator Sherrod Brown (D-OH). 
  • These candidates are all seen as the most likely to flip those seats to the Democrats column. Notably they are all over the age of 68, and Janet Mills at 77 would be the oldest freshman Senator in history if she wins.
  • In Georgia and Michigan, Democrats are on the defense. Sen. Jon Ossoff (D-GA) is defending his seat, and there is an open seat in Michigan being vacated by Sen. Gary Peters (D-MI).

What they’re saying: Analysts widely view control of the chamber as “Republicans’ to lose,” with Democrats facing an uphill task even assuming favorable national conditions. However, a favorable recruiting class for Democrats has buoyed their hopes to retake the chamber. 

Please contact James Montfort (jmontfort@crefc.org) with questions.

 

Contact  

James Montfort
Manager,
Government Relations
202.448.0857
jmontfort@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Midterm Update: Redistricting Clouds Outlook
October 21, 2025
The 2026 midterm elections are one year away.

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