National Housing Emergency Act of 2026

The National Housing Emergency Act of 2026 requires the President to declare a national emergency concerning housing, citing a severe shortage of at least 4 million units and rising unaffordability. To address this crisis, the bill mandates the use of the Defense Production Act of 1950 to incentivize the domestic production of materials essential for residential construction and rehabilitation.

During the declared emergency, the bill significantly streamlines federal regulations. It suspends certain provisions of the Cranston-Gonzalez National Affordable Housing Act and the Community Development Banking and Financial Institutions Act, and exempts some HUD-funded projects from federal environmental review requirements. For projects using multiple federal programs, only one environmental review under NEPA would be required.

A key provision establishes a "Pro-Growth Requirement" for states and local governments to receive federal block grant funding. To comply, grantees must demonstrate positive housing growth and take actions to remove local barriers, such as:

• Reducing minimum lot size requirements;
• Allowing manufactured homes and multi-family units (duplexes, triplexes, fourplexes) in single-family zones;
• Streamlining permitting processes;
• Allowing accessory dwelling units (ADUs); and
• Enacting high-density zoning.

Furthermore, the bill prohibits states and local governments from imposing land-use regulations that substantially burden housing construction or rehabilitation during the emergency. It also sets minimum residential code standards for new or rehabilitated housing. The national housing emergency would conclude once 4 million additional housing units are constructed or rehabilitated, or by October 1, 2031, whichever occurs first.