January–May 2026 News Roundup
The first five months of 2026 brought significant activity at the federal level, and meaningful developments across our four-state region. Here is a look back at the key news affecting affordable and rural housing providers in North Carolina, South Carolina, Virginia, and West Virginia.
1) Bipartisan Housing Legislation Advances in Congress
Federal housing reform gained serious momentum early in 2026. In February, the U.S. House passed H.R. 6644, the Housing for the 21st Century Act. A wide-ranging package focused on expanding supply, reducing regulatory barriers, and preserving existing affordable units. Then in March, the U.S. Senate voted 89–10 to pass the 21st Century ROAD to Housing Act, one of the most significant federal housing initiatives to advance in nearly 30 years. While the House and Senate versions differ in key ways, including the Senate's provision restricting large institutional investors from purchasing single-family homes, both reflect a growing bipartisan recognition of the housing affordability crisis. The House is now weighing how to reconcile the two bills.
Read our coverage: Bipartisan Housing Package Advances in CongressRead our coverage: Senate Overwhelmingly Passes Landmark Housing Bill
2) FY 2026 Income Limits Released — What Compliance Teams Need to Know
After a one-month delay caused by the government shutdown pushing back Census Bureau data releases, HUD published FY 2026 income limits on May 1. The thresholds used to determine tenant eligibility for LIHTC properties and HUD-assisted programs including Section 8, HOME, Section 202, and Section 811. Certifications fully signed before May 1 may remain as-is. Any certification dated May 1 or later should reflect the updated limits, and any required decreases must be implemented no later than June 15, 2026. Compliance staff across our region should review area-specific limits at HUD USER: huduser.gov.
Read our coverage: HUD Delays Fiscal Year 2026 Income Limits Until May 1
3) USDA Launches Rural Housing Modernization Initiative
In March, USDA announced the Rural Housing Modernization Initiative, designed to improve how its rural single-family loan programs are delivered. The initiative strengthens both the Single Family Housing Guaranteed Loan Program and the Single Family Housing Direct Loan Program by reducing unnecessary delays and aligning processes with current market conditions, with no changes to eligibility standards or funding levels. For lenders, developers, and housing organizations working in rural communities across our region, this is a positive step toward more efficient program administration.
Read our coverage: USDA Launches Rural Housing Modernization Initiative
4) Administration's FY 2027 Budget Proposes Increases for Some RD Programs — With Continued Concerns for HUD
The Administration's proposed FY 2027 budget, released April 3, contains a mixed picture for affordable and rural housing. On the USDA side, Section 521 Rental Assistance would increase to $1.795 billion and the Section 538 Guaranteed Rural Rental Housing Program would grow by $100 million. However, the Section 542 Rural Housing Voucher program would be eliminated, and both the HOME and CDBG programs would again be zeroed out on the HUD side. Congress rejected those HUD eliminations in FY 2026, approving $1.25 billion for HOME and $7 billion for CDBG. CARH is urging members to again contact their representatives to advocate for full program funding.
Read our coverage: Administration's Fiscal Year 2027 Proposed Budget Released
5) Recent Housing Investments Support Rural Communities in Virginia and West Virginia
April brought encouraging news for our region, with new federal housing investments announced in Virginia and West Virginia in support of affordable rental housing in rural communities. These investments underscore the ongoing importance of USDA Rural Development programs to our member states, and reinforce why continued advocacy for their funding matters.
6) HUD Updates Environmental Review Requirements for Multifamily Development
In May, HUD announced revisions to its Multifamily Accelerated Processing (MAP) Guide, removing outdated environmental review requirements for FHA-insured multifamily housing. Changes include the elimination of standalone railroad vibration assessments, updated standards for power lines and fall hazards, and clarified requirements for noise-sensitive outdoor spaces. These updates take effect immediately for applications not yet at initial endorsement. And for developers in our region working with FHA financing, they represent meaningful reductions in complexity and cost.
7) HUD and USDA Rescind 2024 Energy Code Requirement
Also in April, HUD and USDA jointly rescinded the 2024 Energy Code requirement for new federally assisted housing construction. The agencies cited cost reduction as the primary rationale. Mid-Atlantic members with projects in their pipelines that had incorporated the 2024 standards should review what this change means for their current scopes and financing structures.
Read our coverage: HUD and USDA Rescind 2024 Energy Code Requirement for New Housing
Stay connected with MCAH for ongoing news, education, and advocacy for affordable housing across North Carolina, South Carolina, Virginia, and West Virginia. Questions? Reach us at admin@midatlanticcah.org.