21st Century ROAD to Housing Act Delivers Permanent Decoupling

AGG Real Estate and Affordable Housing attorney Nick Tsimortos authored an article for the Council for Affordable and Rural Housing (“CARH”) July 2026 Newsletter analyzing the 21st Century ROAD to Housing Act (“ROAD Act”), which became law on July 11, 2026.

Nick explains that the ROAD Act permanently authorizes the decoupling of Section 521 Rental Assistance (“RA”) from maturing Section 514 and 515 mortgages. The law moves the Stand-Alone Rental Assistance (“SARA”) program from a temporary appropriations pilot to permanent statutory authority and permanently authorizes the Multifamily Preservation and Revitalization program.

For owners, lenders, and investors, permanent decoupling provides a longer-term preservation tool when a Section 514 or 515 mortgage matures. Nick outlines key SARA terms, including RA contracts of 10 to 20 years, rent-setting based generally on HUD Fair Market Rents with Operating Cost Adjustment Factor updates, potential budget-based rents, and the removal of traditional surplus-cash restrictions under SARA.

To read the full article and learn more about the 21^st Century ROAD Act, please click here.