Last Friday, the 21st Century ROAD to Housing Act came into force, despite President Donald Trump having announced he would not sign the bipartisan legislation. The Act automatically became law after the constitutionally mandated 10-day period for presidential signature expired. According to Allen Féliz, Vice President of Innovation for Affordable and Public Housing at tech giant MRI Software, the US real estate business, particularly the Proptech sector, could be significantly affected by this legislation.
Féliz, who has over 20 years of experience in residential real estate finance, asset management, consulting, and technology, discussed in a conversation with Commercial Observer how the Act aims to increase housing supply by removing regulatory barriers and modernising housing programmes. This is intended to lead to more public-private partnerships and increased operational demands. According to Féliz, these requirements will, in turn, benefit Proptech companies offering services in compliance management, workflow automation, asset management, and data transparency.
Significance for Real Estate and Proptech
Féliz expressed enthusiasm for the ROAD Act, as it offers the opportunity to remove regulatory obstacles to increasing housing supply. He emphasised that it would modernise housing programmes and open up new possibilities for increasing the housing stock. For operations and technology in affordable and public housing, the operational implications of the Act are likely to be significant, as it aims to increase housing supply, modernise housing policy, and improve programme administration. This means that housing authorities will gain new flexibility or funding tied to preservation.
All housing teams will be compelled to update policies, track resident notices, coordinate inspections, and document decisions. Féliz believes that companies with robust systems, clean data, and connected workflows are best equipped to respond to this. As one of the largest Proptech providers, MRI Software looks forward to playing a central role in helping teams maintain compliance, document decisions, manage resident and applicant activities, and proactively manage risks.
Asked whether the Act does not merely introduce another layer of bureaucratic compliance, Féliz explained that much of the ROAD Act aims to dismantle certain barriers. He cited as an example that Public Housing Authorities (PHAs) currently need more flexibility to modernise their portfolios. One of the best options is the Rental Assistance Demonstration (RAD) programme. As it is a demonstration programme, PHAs have previously been limited in the number of units they could put through this process. The programme allows them to convert their voucher funding into a long-term Section 8 contract and use it to access additional financing sources in the private market to redevelop their projects. Under the new Act, 100,000 new units will be admitted into the RAD programme, and more authorities can participate in the Moving to Work programme, giving them greater flexibility in using their funds.
This Act aims to remove regulatory barriers for housing providers in various ways. However, as an increase in housing supply is expected, this ultimately means more units, larger portfolios, more applicants, and thus more administrative effort and data management in the affordable and public housing sector. This leads to more work for operational staff and for system providers, i.e., Proptech providers.
Impact on the Private Sector
Projects will evolve from being fully managed by housing authorities to a framework where housing authorities seek partnerships with private entities. These could be private co-developers or non-profit partners. For many of these projects, private investors are sought to provide equity or debt to redevelop the properties. Essentially, many units will transition from the fully public domain into public-private partnerships that manage and operate these properties. Many of these properties will become Low-Income Housing Tax Credit projects, jointly held by housing authorities and private non-profit developers. This means significantly greater private sector involvement and, in turn, an increased need for private sector systems.
MRI Software already works with many of these organisations through its compliance technology and property management technology for affordable housing. Many of these private owners also own conventional multi-family properties and have mixed portfolios of affordable and conventional units. A larger number of these organisations will collaborate with housing authorities to redevelop their assets.
- —Compliance management
- —Workflow automation
- —Asset management
- —Data transparency and deeper insights into portfolios
