S. 3600: National Housing Emergency Act of 2026

This bill, titled the National Housing Emergency Act of 2026, proposes several measures aimed at addressing housing shortages in the United States. Here are the key components of the bill:

National Housing Emergency Declaration

The bill requires the President to declare a national housing emergency, under which the government can invoke the Defense Production Act to boost the production of residential housing. This includes increasing the supply of construction materials produced domestically.

Findings Supporting the Bill

Congress cites several findings that justify the need for this bill, including:

• Housing is a significant expense for households, making up 45% of the Consumer Price Index.
• A large proportion of households (about 75%) cannot afford a median-priced home.
• There is a severe shortage of approximately 4 million housing units, expected to grow to 10 million by 2035 due to inadequate construction and excessive regulations.
• The costs of buying homes have significantly increased since the COVID-19 pandemic, leading to worsening affordability.
• Regulations contribute about 25% of the costs in building new homes.
• Addressing the housing shortage could create millions of jobs and significantly contribute to the economy.

Amendments to the Defense Production Act

The bill amends the Defense Production Act of 1950 to include provisions related to residential construction and rehabilitation, expanding the scope of the Act to better facilitate housing development.

Removing Regulatory Barriers

While the national emergency is in effect, various existing regulations will be suspended, including:

• Specific sections of the Cranston-Gonzalez National Affordable Housing Act concerning housing development.
• Environmental review requirements for housing projects funded by the Department of Housing and Urban Development (HUD).
• Limitations on the development or rehabilitation of housing related to federal grant programs.

Minimum Residential Code Standards

The bill sets minimum code standards for housing construction and rehabilitation during the emergency. Housing must meet the 2009 International Residential Code or equivalent standards.

Pro-Growth Requirement

The bill establishes a "Pro-Growth Requirement" for federal funding, which local governments must comply with to receive Federal block grants. Compliance will be based on:

• Measurable housing growth and changes to reduce barriers for housing development.
• Criteria such as reducing lot size requirements, allowing manufactured homes in residential zones, and facilitating easier permitting processes.

Prohibition of Land-Use Regulations

No state or local government can impose land-use regulations during the national emergency that significantly hinder residential housing construction or rehabilitation.

Termination of National Emergency

The national emergency declared under this bill will end once 4 million additional residential housing units are constructed or rehabilitated, or on October 1, 2031, whichever comes first.

Relevant Companies

• PHM - PulteGroup, Inc.: This company is likely to see increased business opportunities in residential construction due to the bill’s aim to boost housing production.
• DHI - D.R. Horton, Inc.: As a leading homebuilder, D.R. Horton may benefit from increased demand for new housing driven by the provisions of this bill.
• TOL - Toll Brothers, Inc.: This luxury homebuilder could experience more construction projects arising from reduced regulatory barriers and increased housing demand.