Federal Plan Pushes States to Scrap Single-Family Zoning: New Guidelines Target Parking Rules and Density

The Housing Supply Frameworks Act is a direct shot at the national housing shortage, which the bill notes was a staggering 3.85 million homes back in 2022. The core idea is simple: the federal government, through the Department of Housing and Urban Development (HUD), will create a master playbook of best practices to help states and cities dismantle the local zoning rules that are stopping new homes from being built (SEC. 2).

The Federal Playbook for Local Zoning

Within three years, HUD’s Assistant Secretary will publish detailed guidelines for both state and local governments on how to update their “zoning frameworks” to support building housing for all income levels (SEC. 4). This isn't just a suggestion box; the guidelines are highly prescriptive. For example, they will recommend that states adopt model laws that eliminate minimum parking requirements, allow for smaller lot sizes, and permit duplexes, triplexes, and quadplexes “by-right” across metro areas, meaning they can be built without needing special, time-consuming approvals (SEC. 4).

If you live in a neighborhood currently zoned exclusively for single-family homes, this is the provision that could allow a developer to build a four-plex next door, provided they follow the standard rules. For a small business owner, the elimination of minimum parking requirements could mean lower construction costs for a new building or more space for actual business operations instead of asphalt.

The State-Level Override Button

One of the most significant changes proposed in the guidelines is the creation of a state or regional appeals process (SEC. 4). If a local board rejects a housing project that includes a state-defined amount of affordable housing, the developer could appeal that decision to a higher state or regional body. This body would then evaluate the appeal, primarily based on environmental damage and infrastructure capacity, potentially overriding the local zoning board’s decision. This is a big deal because it shifts power away from local town councils and planning commissions—the people you can actually vote for or yell at—and moves it to a more distant, regional authority. While the goal is to prevent local NIMBYism from blocking necessary affordable housing, it directly impacts the ability of existing residents to shape their communities and raises questions about accountability.

Who Pays and Who Benefits?

To make sure this work gets done, the bill authorizes $3 million annually from fiscal year 2026 through 2030 for HUD to develop these guidelines and report on their adoption (SEC. 7). The guidelines must also look at how adopting these federal recommendations might affect a community’s eligibility for other federal grants from agencies like HUD and the Department of Transportation (DOT) (SEC. 4). This strongly suggests that federal funding could be tied to local zoning reform, creating a powerful incentive—or pressure point—for cities to comply.

For renters and prospective homebuyers, the benefit is clear: if states and cities adopt these changes, it should lead to more housing supply, potentially easing cost burdens. However, the guidelines also mandate that HUD look at models for “preserving affordability, limiting disruption in low-income areas, and preventing displacement” (SEC. 4). The success of this bill hinges on whether those displacement prevention measures are strong enough to protect current residents when new development inevitably moves in.