Federal agencies review housing rules to reduce construction barriers

Federal agencies must review and, where appropriate, revise or remove burdensome requirements affecting residential construction. The review covers stormwater, wetlands, water permits, development programs, manufactured housing, energy and water standards, building codes, and housing finance rules. Agencies must act within their legal authority and consistent with applicable law. The order permits review and revision but does not itself repeal specific rules or guarantee lower construction costs.

The Department of Housing and Urban Development must develop best practices for state and local housing rules, while several agencies must take steps to support them. The practices may cover faster permits, permit fees and deadlines, single-family development, building codes, inspections, manufactured and modular homes, and limits on development beyond urban centers. The practices are guidance for state and local governments, not automatic changes to their laws. Agency revisions must stay within each agency's authority and comply with applicable law. Implementation is subject to available appropriations. HUD must develop and issue the best practices within 60 days of March 13, 2026.

Treasury and HUD must assess ways to align existing tax incentives, grants, financing tools, and other incentives with single-family home construction. The assessment focuses on Qualified Opportunity Funds and areas that qualify as both Opportunity Zones and low-income communities for the New Markets Tax Credit. The order directs evaluation and consideration, not immediate funding, tax changes, or new eligibility. Any future action must be lawful and subject to available appropriations.