What Does the New Federal Housing Legislation Mean for Local Governments in Pennsylvania?

Pennsylvania’s local governments face growing pressure to expand housing options, preserve existing homes, and keep housing affordable. The new federal housing legislation, the 21st Century ROAD to Housing Act, offers municipalities and counties potential new resources and guidance to address these challenges. Its impact, however, will depend on how federal programs are implemented and how effectively local leaders take advantage of them.

Aligning Federal and State Priorities
Pennsylvania’s own Housing Action Plan, announced by Gov. Josh Shapiro in February 2026, provides a framework for turning opportunities into local results.

With an estimated need for 450,000 additional housing units by 2035 to meet projected demand in Pennsylvania, the action plan establishes five goals: building and preserving housing, expanding housing opportunities, stabilizing vulnerable households, modernizing development regulations, and improving coordination across government. 

For municipalities and counties, these priorities offer a starting point for aligning local housing strategies with state and federal initiatives. Local officials can assess housing needs, identify potential development sites, and pursue funding for infrastructure improvements, rehabilitation, and affordable housing.

Modernizing Local Regulations
At the federal and state levels, these plans emphasize reducing unnecessary barriers to housing development. Municipalities can review zoning ordinances, permitting procedures, and approval timelines to identify opportunities to reduce costs and encourage construction.

Pennsylvania’s plan also calls for modernizing the Municipalities Planning Code and strengthening county and regional planning. Local governments should prepare to engage in these discussions while balancing housing needs with infrastructure capacity and community priorities.

As a full-service public sector planning firm with hands-on experience with zoning and subdivision ordinance rewrites, comprehensive planning, and other services, Strategic Solutions can help communities identify their own unique opportunities and limitations regarding housing development.

Preservation
New construction alone will not solve Pennsylvania’s housing challenges. Maintaining older properties, preventing displacement, and addressing homelessness are also important responsibilities for local governments. Every year, many of our cities, townships, and boroughs lose existing units to blight, which effectively negates gains made through new construction and renovation.

Turning Policy Into Results
While new federal legislation and Pennsylvania’s Housing Action Plan create opportunities for local governments to advance housing affordability and availability, these are difficult issues to “solve” within any one municipality.

Regional collaboration can be much more impactful, and Strategic Solutions’ vast comprehensive planning experience, including multi-municipal plans, enables us to work across municipal lines to facilitate meaningful discussions about this urgent challenge. By reviewing regulations, identifying housing needs, and coordinating with state and regional partners, Pennsylvania’s municipalities and counties can position themselves to make the most of these initiatives and deliver tangible improvements for residents.
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