HUD and USDA move to streamline housing environmental reviews

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) have signed a memorandum of understanding to streamline environmental reviews, regulations, and physical inspection standards for housing. This action is a requirement of the Streamlining Rural Housing Act, a component of the bipartisan 21st Century ROAD to Housing Act passed on July 11. The two agencies, which manage the largest combined portfolio of multifamily housing units in the country, have one year to submit recommendations to the U.S. Senate and House committees.

In parallel, lawmakers are exploring a potential “ROAD 2.0” legislative push. A document from the bipartisan Build America Caucus outlines proposals to expand housing development sites, reduce construction costs and delays, and improve access to capital. One key proposal includes the creation of “Right to Build Zones,” where housing would receive automatic approval if it meets standardized zoning and permitting rules, aimed at overcoming local constraints and outdated zoning policies.