The Senate is expected to vote Monday on a bipartisan housing package designed to increase the nation's housing supply by encouraging construction, redeveloping vacant properties, and reducing barriers to development.

The ROAD to Housing Act comes after months of negotiations between House and Senate lawmakers and has support from President Donald Trump, according to CNBC.

Supporters say the legislation is aimed at addressing a nationwide shortage of homes that has limited housing availability and contributes to rising costs.

The measure would ease regulations affecting new housing development, tie some Community Development Block Grant funding to local efforts that increase housing supply, and create a pilot program to help convert vacant properties into housing.

Lawmakers also reached a compromise on provisions involving institutional investors that purchase single-family homes.

The final version would maintain a 350-unit ownership cap for large investors while removing an earlier requirement that would have forced investors to sell newly built or acquired units above that threshold within seven years.

Supporters of the change argued the previous requirement could discourage the construction of housing and reduce incentives for development.

"America is facing a housing crisis, and it's long past time for Congress to act," Sen. Adam Schiff, D-Calif., wrote on X. "The bipartisan ROAD to Housing Act will boost our housing supply & stop private equity from buying up single-family homes — and bring costs down."

Business groups also backed the legislation's emphasis on expanding the housing stock.

"With America facing a shortage of over 4.7 million homes, expanding supply remains the most effective and sustainable way to improve affordability, support workforce mobility, and strengthen local economies," said Neil Bradley, executive vice president and chief policy officer of the U.S. Chamber of Commerce.

Bradley said the package would encourage housing development by modernizing federal housing programs, reducing regulatory barriers, preserving residential and multifamily rental housing options, increasing pathways to homeownership, and encouraging investment and construction.

The legislation was led by Sen. Tim Scott, R-S.C., Sen. Elizabeth Warren, D-Mass., Rep. French Hill, R-Ark., and Rep. Maxine Waters, D-Calif.

Warren said the bill would also place new limits on private equity ownership in residential areas, a provision supporters say will keep more homes available to individual buyers and families.

"Never before has Congress put any restriction on the ability of private equity to move into whatever industry they want, buy up whatever they want and destroy whatever they want," Warren told CNBC. "This bill is historic because it puts a big fat 'no' right in front of private equity's growth as it tries to mow through our neighborhoods."