The bipartisan Terwilliger Center’s Advisory Committee recently sent a letter to Vince Haley, director of the White House Domestic Policy Council, with a list of six policy suggestions that they believe could address the nation’s housing affordability crisis.
The letter aligns with a Trump administration view that the housing crisis is largely a result of a supply shortage. While local regulations are often the make-or-break issue for housing, the ideas sent to the White House offer a potential roadmap for addressing this issue at a federal level.
The suggestions include potential policy adjustments and targeted investments that could empower builders and developers to deliver inventory faster and more cost-effectively.
Streamline National Environmental Policy Act (NEPA) Requirements
Lawmakers in the House of Representatives could vote early next year on the bipartisan HOME Reform Act of 2025, which would streamline affordable housing development and expand homeownership opportunities.
The legislation would exempt certain categories of development under the HOME program from review under NEPA, which is often blamed for delaying or killing development. These categories include new construction and rehabilitation projects of 15 units or fewer, and projects on infill lots.
The letter agrees with the legislation’s emphasis on streamlining the NEPA review process and creating categorical exclusions. The group further recommended that the federal government reassess when environmental reviews are required for LIHTC-financed projects.
Review Davis-Bacon Prevailing Wage Requirements
The group recommended that the Trump administration review how David-Bacon prevailing wage requirements impact the cost of constructing and preserving affordable housing, especially those funded by the Low-Income Housing Tax Credit.
The Davis-Bacon Act mandates that workers on most federal construction projects receive the prevailing local wage and fringe benefits for their specific trade and area. The Department of Labor sets these rates, which include a base hourly wage and additional benefits. Contractors are required to apply the proper rates for all hours worked and follow all overtime regulations.
“Exempting LIHTC projects from these requirements could generate substantial savings, which could be reinvested in building and preserving more homes,” the letter read.
Identify and quantify LIHTC development costs
The letter urged the federal government to further investigate and quantify the cost drivers behind LIHTC projects. Recommendations include the following:
- Conducting a comprehensive study of hard and soft costs attached to LIHTC projects.
- Compare these costs to those associated with market-rate developments
- Examine if caps on syndication and legal fees would make LIHTC more efficient.
Incentivize municipalities to implement zoning and land use reforms
Without providing specifics, the letter urged the federal government to use monetary “carrot-and-stick” incentives to encourage municipalities and states to remove burdensome regulatory barriers from the development process.
“Such an effort would align with a broader federal push to cut red tape and promote private investment as a driver of economic expansion and housing affordability.”
The group specifically called out local regulatory burdens such as varied building code interpretations, elongated approval timelines, minimum lot size requirements, and limits to multifamily housing and manufactured units.
Invest in construction workforce training
Data from the Home Builders Institute concludes that a chronic supply of construction labor costs the homebuilding industry $10.8 billion in lost construction and delays.
To this end, the Terwilliger Center’s letter advises that the Trump administration expand funding for relevant training programs at trade schools and community colleges.
This echoes a warning from Branka Minic, CEO of Building Talent Foundation, that cutting training and career-path investments now will only deepen the industry’s structural labor crisis.
Expand bank support for affordable housing
National and state member banks are legally restricted to investing no more than 15% of their total capital and surplus in public-welfare ventures, including affordable housing and other community development initiatives.
“Raising this cap could significantly expand the pool of private capital available to help support the construction and preservation of affordable housing,” the letter stated.
The legislative road ahead
The administration could move some of these suggestions forward, but others would need congressional action.
In addition to the HOME Reform Act, the Senate passed the bipartisan ROAD to Housing Act in October as part of the National Defense Authorization Act of 2026. The bill aims to address housing affordability through increased supply and reduced regulatory barriers.