Feds Offer States a Playbook for Zoning Reform: Housing Supply Act Aims to Cut Red Tape, Boost Construction

The Housing Supply Frameworks Act directs the Department of Housing and Urban Development (HUD) to tackle the nation's housing shortage by developing national guidelines and best practices for state and local zoning laws. The goal, backed by $3 million annually from FY2026-2030, is to help local governments update outdated rules that often hinder new housing construction, particularly for workforce and affordable options. HUD's Assistant Secretary for Policy Development and Research has three years to publish these guidelines after consulting with a diverse task force and gathering public input.

Unpacking the Zoning Toolkit

So, what kind of changes are we talking about? The Act specifically calls for guidelines on things many communities grapple with. Think reducing or eliminating minimum parking requirements, which can drive up costs and take up valuable space. It also suggests allowing denser development by increasing limits on building height and floor area, reducing minimum lot sizes, and making it easier to build things like duplexes, triplexes, or accessory dwelling units (ADUs – think granny flats or backyard cottages) 'by-right,' meaning without a lengthy special approval process. The guidelines will also cover streamlining permit reviews, promoting manufactured and modular housing, and encouraging more development near public transit hubs.

More Than Just Blueprints

This isn't just about telling towns to build more, though. The Act requires HUD to consider the real-world impact on communities. The guidelines must address how zoning changes align with fair housing laws, how to preserve existing affordable housing, prevent displacement of low-income residents, and coordinate new housing with necessary infrastructure like roads and schools. They'll also explore ways to make public participation in zoning decisions more accessible, including for non-English speakers and people with disabilities. Plus, the bill recognizes that 'one size fits all' doesn't work, requiring different recommendations for rural, suburban, and urban areas, and acknowledging differences between states with strong local control ('home rule') versus those where state law dictates more ('Dillon Rule').

The Fine Print and Follow-Up

The Act suggests models for states, including potentially creating state-level boards where developers could appeal local rejections of projects that include a certain amount of affordable housing – though communities meeting specific affordability benchmarks could be exempt. It also emphasizes standardizing things like impact fees and building codes to potentially lower costs. To track progress, HUD must report back to Congress within five years on which states and localities adopt the recommendations and whether it correlates with an increase in building permits. Finally, the bill officially sunsets an older, related program called the Regulatory Barriers Clearinghouse, consolidating efforts under this new framework.