Episode 83: FY27 HUD Budget Hearing and the 21st Century ROAD Act

HUD Secretary Scott Turner faced bipartisan support for HUD programs during FY27 budget hearings before both the House and Senate Appropriations Committees last week — a notable signal amid broad discretionary spending pressure. At the same time, the House released an amended 21st Century ROAD to Housing Act on May 14, with a floor vote expected this week. For LIHTC investors, developers, syndicators, and lenders, the convergence of an active appropriations fight, a major housing supply bill, and early reconciliation maneuvering makes the next several weeks unusually high-stakes.Key Takeaways:HUD Secretary Scott Turner testified before both the House and Senate Appropriations Committees in response to the Trump administration's FY27 budget request.Bipartisan committee support for HUD programs creates political cover for preserving Housing Choice Voucher and project-based rental assistance funding — both critical to LIHTC deal structures and compliance.The amended 21st Century ROAD to Housing Act text was released May 14; a House floor vote is expected the week of May 18.House Republicans held a closed-door meeting on May 12 to discuss a potential third reconciliation package — a vehicle that could carry tax title changes affecting LIHTC, depreciation, or bond financing.A separate $72 billion reconciliation bill focused on ICE and CBP funding is already in progress, signaling active use of the reconciliation process this Congress.NLIHC joined a national sign-on letter urging full inclusion of the Rural Housing Service Reform Act in the final housing supply package — a provision relevant to deals in rural markets and USDA-financed properties.HUD's proposed Equal Access Rule NPRM, which would scale back equal access protections in HUD programs, is drawing legal analysis from the National Housing Law Project, with a webinar scheduled for May 20.Deals currently in predevelopment or financing are underwriting into a policy environment that could shift on multiple fronts at once. The ROAD Act's amended text deserves a close read for provisions touching private activity bond volume cap, zoning preemption, or federal land and financing tools. The third reconciliation conversation is early — but it is already happening behind closed doors, and the LIHTC community should be engaged before the vehicle takes shape.Subscribe to The Spring Street Brief for daily updates on affordable housing in America.