Title II — Building More in America

119th Congress · Approved Jul 11, 2026 · 140 Stat. 846

TITLE II Building More in America

SEC. 201. Increasing Housing in Opportunity Zones.

(a)

Covered Grant Defined.— In this section, the term “covered grant” means any competitive grant relating to the construction, modification, rehabilitation, or preservation of housing, as determined by the Secretary of Housing and Urban Development.

(b)

Priority.— When awarding a covered grant, the Secretary of Housing and Urban Development may give additional weight to applicants with proposed activities or projects that are located in or substantially and directly benefit a community designated as a qualified opportunity zone under section 1400Z–1 of the Internal Revenue Code of 1986.

SEC. 202. Whole-Home Repairs Act.

(a)

Definitions.— In this section:

(1)

Affordable unit.— The term “affordable unit” means a unit for which the monthly rental payment is not more than 30 percent of the gross income of an individual earning at or below 80 percent of the area median income, as defined by the Secretary.

(2)

Assisted unit.— The term “assisted unit” means a unit that undergoes repair or rehabilitation work through a whole-home repairs program administered by an implementing organization under this section.

(3)

Eligible home-owner.— The term “eligible home-owner” means a home-owner—

(A)

with a household income that—

(i)

is not more than 80 percent of the area median income; or

(ii)

meets the income eligibility requirements for receiving assistance or benefits under a specified program, as defined in paragraph (11); and

(B)

who is—

(i)

an owner of record as evidenced by a publicly recorded deed, or other document recorded by the Bureau of Indian Affairs, and occupies the home on which repairs are to be conducted as their principal residence;

(ii)

an owner-occupant of the manufactured home on which repairs are to be conducted;

(iii)

an owner-occupant of the cooperative housing unit on which repairs are to be conducted; or

(iv)

an owner who can demonstrate an ownership interest in the property, or trust land leasehold, on which repairs are to be conducted, including a person who has inherited an interest in that property.

(4)

Eligible landlord.— The term “eligible landlord” means an individual—

(A)

who owns, as determined by the relevant implementing organization, fewer than 10 eligible rental properties, with a majority of affordable units and not more than 25 total units, operated as primary residences in which a majority ownership interest is held by the individual, the spouse of the individual, or the dependent children of the individual, or any closely held legal entity controlled by the individual, the spouse of the individual, or the dependent children of the individual, either individually or collectively; and

(B)

who agrees to the provisions described in subsection (b)(3).

(5)

Eligible rental property.— The term “eligible rental property” means a residential property that—

(A)

is leased, or offered exclusively for lease, as a primary residence by an eligible landlord; and

(B)

includes affordable units.

(6)

Forgivable loan.— The term “forgivable loan” means a loan—

(A)

made to an eligible landlord;

(B)

that is secured by a lien recorded against a residential property; and

(C)

that may be forgiven by the implementing organization not later than the date that is 3 years after the completion of the repairs if the eligible landlord has maintained compliance with the loan agreement described in subsection (b)(3).

(7)

Implementing organization.— The term “implementing organization”—

(A)

means a unit of general local government or a State that—

(i)

will administer a whole-home repairs program through an agency, department, or other entity; or

(ii)

enters into agreements with 1 or more local governments, Indian tribes, municipal authorities, other governmental authorities, including a tribally designated housing entity, or qualified nonprofit organizations, to administer a whole-home repairs program as a subrecipient; and

(B)

does not include a redundant entity in a jurisdiction already served by a grantee under subsection (b).

(8)

Indian tribe.— The term “Indian tribe” has the meaning given the term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).

(9)

Qualified nonprofit.— The term “qualified nonprofit” means a nonprofit organization that—

(A)

has received funding, as a recipient or subrecipient, through—

(i)

the Community Development Block Grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.);

(ii)

the HOME Investment Partnerships program under subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12741 et seq.);

(iii)

the Lead-Based Paint Hazard Reduction grant program under section 1011 of the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4852), a grant under the Healthy Homes Initiative administered by the Secretary pursuant to sections 501 and 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z–1, 1701z–2), or a grant under the Older Adult Home Modification Grants Program authorized under the Consolidated Appropriations Act, 2024 (Public Law 118–42), or any successor Act, to make safety and functional home modification repairs and renovations to meet the needs of low-income seniors to enable them to remain in their primary residence;

(iv)

the Self-Help and Assisted Homeownership Opportunity program authorized under section 11 of the Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note);

(v)

a rural housing program under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.); or

(vi)

the Neighborhood Reinvestment Corporation established under the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8101 et seq.);

(B)

has coordinated, performed, or otherwise been engaged in weatherization, lead remediation, or home-repair work for not less than 2 years;

(C)

has been certified by the Environmental Protection Agency, or by a State authorized by the Environmental Protection Agency to administer a certification program, as—

(i)

eligible to carry out activities under the lead renovation, repair, and painting program under section 402(c) or 404 of the Toxic Substances Control Act (15 U.S.C. 2682(c), 2684); or

(ii)

a Home Certification Organization under the Energy Star program established by section 324A of the Energy Policy and Conservation Act (42 U.S.C. 6294a) or the WaterSense program under section 324B of that Act (42 U.S.C. 6294b), or recognized or otherwise approved by the Environmental Protection Agency as a Home Certification Organization under either of those programs; or

(D)

is a community development financial institution, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702).

(10)

Secretary.— The term “Secretary” means the Secretary of Housing and Urban Development.

(11)

Specified program.— For purposes of paragraph (3)(A)(ii), the term “specified program” means any of the following:

(A)

The Medicaid program established under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.).

(B)

The State Children’s Health Insurance Program established under title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.).

(C)

The supplemental security income benefits program established under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.).

(D)

The supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).

(E)

The temporary assistance for needy families program established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).

(12)

State.— The term “State” means—

(A)

each State of the United States;

(B)

the District of Columbia;

(C)

the Commonwealth of Puerto Rico;

(D)

any territory or possession of the United States; and

(E)

an Indian tribe.

(13)

Tribally designated housing entity.— The term “tribally designated housing entity” has the meaning given the term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).

(14)

Whole-home repairs.— The term “whole-home repairs” means modifications, repairs, or updates to home-owner or renter-occupied units to address—

(A)

physical and sensory accessibility for individuals with disabilities and older adults, such as bathroom and kitchen modifications, installation of grab bars and handrails, guards and guardrails, lifting devices, ramp additions or repairs, sidewalk addition or repair, or doorway or hallway widening;

(B)

habitability and safety concerns, such as repairs needed to ensure residential units are fit for human habitation and free from defective conditions or health and safety hazards; or

(C)

energy and water efficiency, resilience, and weatherization.

(b)

Pilot Program.—

(1)

Establishment.— There is authorized a pilot program to provide grants to implementing organizations to administer a whole-home repairs program for eligible home-owners and eligible landlords.

(2)

Use of funds.— An implementing organization that receives a grant from appropriated funds made available for this subsection—

(A)

shall provide grants to eligible home-owners to implement whole-home repairs not covered by other Federal home repair programs up to a maximum amount per unit, which maximum amount should—

(i)

reflect local construction costs and the level of repairs needed in each unit; and

(ii)

be calculated and approved by the Secretary;

(B)

shall provide loans, which may be forgivable, to eligible landlords to implement whole-home repairs not covered by other Federal home repair programs for individual affordable units, public and common use areas within the property, and common structural elements up to a maximum amount per unit, area, or element, as applicable, which maximum amount should—

(i)

reflect local construction costs; and

(ii)

be calculated and approved by the Secretary;

(C)

shall evaluate, or provide assistance to eligible home-owners and eligible landlords to evaluate, whole-home repair program funds provided under this subsection with Federal, State, Tribal, and local home repair programs to provide the greatest benefit to the greatest number of eligible landlords and eligible home-owners and avoid duplication of benefits and redundancies for the same home repairs;

(D)

shall require that—

(i)

all repairs funded or facilitated through an award under this subsection have been completed;

(ii)

if repairs are not completed and the plan for whole-home repairs is not updated to reflect the new scope of work, that the loan or grant is repaid on a prorated basis based on completed work; and

(iii)

any unused grant or loan balance is returned to the implementing organization, and is reused by the implementing organization for a new whole-home repair grant or loan under this subsection;

(E)

may use not more than 5 percent of the awarded funds to carry out related functions, including workforce training for home repair professions, which shall be related to efforts to increase the number of home repairs performed and approved by the Secretary;

(F)

may use not more than 10 percent of the awarded funds for administrative expenses;

(G)

shall comply with Federal accessibility requirements and standards under applicable Federal fair housing and civil rights laws and regulations, including section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); and

(H)

shall ensure that rental properties assisted under subparagraph (B) shall be treated as projects assisted under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.).

(3)

Loan agreement.— In a loan agreement with an eligible landlord under this subsection, an implementing organization shall include provisions establishing that the eligible landlord shall, for each eligible rental property for which a loan is used to fund repairs under this subsection—

(A)

comply with Federal accessibility requirements and standards under applicable Federal fair housing and civil rights laws and regulations, including section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); and

(B)

(i)

if the landlord is renting the assisted units available in the eligible rental property to tenants receiving tenant-based rental assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), under another tenant-based rental assistance program administered by the Secretary or the Secretary of Agriculture, or under a tenant-based rental subsidy provided by a State or local government, comply with the program requirements under the relevant tenant-based rental assistance program; or

(ii)

if the eligible landlord is not renting to tenants receiving rental-based assistance as described in clause (i)—

(I)

(aa)

offer to extend the lease of current tenants on current terms, other than the terms described in subclause (iv) for not less than 3 years beginning after the completion of the repairs, unless the lease is terminated due to failure to pay rent, performance of an illegal act within the rental unit, or a violation of an obligation of tenancy that the tenants failed to correct after notice; and

(bb)

if the tenant of an assisted unit moves out of the assisted unit at any point in the 3-year period following the loan agreement, maintain the unit as an affordable unit for the remainder of the 3-year period;

(II)

provide documentation verifying that the property, upon completion of approved renovations, has met all applicable State and local housing and building codes;

(III)

attest that the landlord has no known serious violations of renter protections that have resulted in fines, penalties, or judgments during the preceding 10 years; and

(IV)

cap annual rent increases for each assisted unit at 5 percent of base rent or at the rate of inflation, whichever is lower, for not less than 3 years beginning after the completion of the repairs.

(4)

Application.—

(A)

In general.— An implementing organization desiring an award under this subsection shall submit to the Secretary an application that includes—

(i)

the geographic scope of the whole-home repairs program to be administered by the implementing organization, including the plan to address need in any rural, Tribal, suburban, or urban area within a jurisdiction;

(ii)

a plan for selecting subrecipients, if applicable;

(iii)

a description of how the implementing organization plans to execute the coordination of Federal, State, Tribal, and local home repair programs, including programs administered by the Department of Energy, the Department of the Interior, the Department of Veteran Affairs, or the Department of Agriculture, to increase efficiency and reduce redundancy;

(iv)

available data on the need for affordable and quality housing within the geographic scope of the whole-home repairs program, and any plans to preserve affordability through the term of the award;

(v)

a description of how the implementing organization plans to process and verify applications for grants from eligible home-owners and applications for loans from eligible landlords; and

(vi)

such other information as the Secretary requires to determine the ability of an applicant to carry out a program under this subsection.

(B)

Considerations.— In making awards under this subsection, the Secretary shall—

(i)

with respect to applications submitted by States other than the District of Columbia and the territories of the United States, prioritize those applications with a demonstrated plan to—

(I)

make a good-faith effort to implement the pilot program in every jurisdiction; and

(II)

provide nonmetropolitan areas, or subrecipients serving non-metropolitan areas if applicable, with a share of total funds commensurate with their population;

(ii)

aim to select applicants so that the awardees collectively span diverse geographies, with an intent to understand the impact of the pilot program under this subsection in urban, suburban, rural, and Tribal settings; and

(iii)

not disqualify implementing organizations that were awarded grants under the pilot program in prior application cycles.

(5)

Program information.— The Secretary shall make available to grant recipients under this subsection information regarding existing Federal programs for which grant recipients may coordinate or provide assistance in coordinating applications for those programs in accordance with paragraph (2)(C).

(6)

Grant number.— In each year in which an award is made under this subsection, the Secretary shall award assistance to—

(A)

not less than 2, and not more than 10, implementing organizations, as application numbers and funding permit; and

(B)

not more than 1 implementing organization in any State.

(7)

Loans that are not forgiven.— If a loan made by an implementing organization under paragraph (2)(B) is not forgiven, the loan repayment funds shall be reused by the implementing organization for a new whole-home repair grant or loan under this subsection, which shall remain subject to the original terms of the assistance awarded under this subsection.

(8)

Supplement, not supplant.— Amounts awarded under this subsection to implementing organizations shall supplement, not supplant, other Federal, State, Tribal, and local funds made available to those entities.

(9)

Streamlining program delivery and ensuring efficiency.— To the extent possible, in carrying out the pilot program under this subsection, the Secretary shall—

(A)

endeavor to improve efficiency of service delivery, as well as the experience of and impact on the taxpayer, by encouraging programmatic collaboration and information sharing across Federal, State, Tribal, and local programs for home repair or improvement, including programs administered by the Department of Agriculture, the Department of the Interior, the Department of Veterans Affairs, or the Department of Energy; and

(B)

enhance collaboration and cross-agency streamlining efforts that reduce the burden of multiple income verification processes and applications on the eligible home-owner, the eligible landlord, the implementing organization, and the Federal Government, including by establishing assistance application procedures for income eligibility under this subsection that recognize income eligibility determinations for assistance using any of the criteria under subsection (a)(3)(A) that have been used for assistance applications during the 1-year period preceding the date on which an eligible home-owner or eligible landlord applies for assistance under this subsection.

(10)

Reporting requirements.—

(A)

Annual report.— An implementing organization that receives a grant under this subsection shall submit to the Secretary an annual report on initial funding that includes—

(i)

the number of units served, including reporting on both home-ownership and rental units, as well as accessible units;

(ii)

the average cost per unit for modifications or repairs and the nature of those modifications or repairs, including reporting on accessibility in both home-ownership and rental units;

(iii)

the number of applications received, served, denied, or not completed, disaggregated by geographic area;

(iv)

the aggregated demographic data of grant recipients, which may include data on income range, urban, suburban, and rural residency, age, and racial and ethnic identity;

(v)

the aggregated demographic data of loan recipients, which may include data on income range, urban, suburban, and rural residency, age, and racial and ethnic identity;

(vi)

an affirmation that the implementation organization has complied with the applicable regulations, including compliance with Federal accessibility requirements;

(vii)

in the first year of receiving a grant, and as certified in subsequent reports, a comprehensive plan to prevent waste, fraud, and abuse in the administration of the pilot program, which shall include, at a minimum—

(I)

a policy enacted and enforced by the implementing organization to monitor ongoing expenditures under this subsection and ensure compliance with applicable regulations;

(II)

a policy enacted and enforced by the implementing organization to detect and deter fraudulent activity, including fraud occurring in individual projects and patterns of fraud by parties involved in the expenditure of funds under this subsection;

(III)

a statement setting forth any violations detected by the implementing organization during the previous calendar year, including details about steps taken to achieve compliance and any remedial measures; and

(IV)

a certification by the chief executive or most senior compliance officer of the organization that the organization maintains sufficient staff and resources to effectively carry out the above-mentioned policies; and

(viii)

such other information as the Secretary may require.

(B)

Reporting requirement alignment.— To limit the costs of implementing the pilot program under this subsection, the Secretary shall endeavor, to the extent possible, to structure reporting requirements such that they align with the data reporting requirements in place for funding streams that implementing organizations are likely to use together with funding from this subsection, including the reporting requirements under—

(i)

the Community Development Block Grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.);

(ii)

the HOME Investment Partnerships program under subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12741 et seq.);

(iii)

the Weatherization Assistance Program for low-income persons established under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.); and

(iv)

the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.).

(C)

Pilot program period reports.— Not less frequently than twice during the period in which the pilot program established under this subsection operates, the Office of Inspector General of the Department of Housing and Urban Development shall complete an assessment of the implementation of measures to ensure the fair and legitimate use of the pilot program.

(D)

Summary to congress.— The Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual report providing a summary of the data provided under subparagraphs (A) and (C) during the 1-year period preceding the report and all data previously provided under those subparagraphs.

(11)

Environmental review.— A grant under this subsection shall be—

(A)

treated as assistance for a special project for purposes of section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547); and

(B)

subject to the regulations promulgated by the Secretary to implement such section.

(12)

Termination.— The pilot program established under this subsection shall terminate on October 1, 2031.

SEC. 203. Community Investment and Prosperity Act.

(a)

Revised Statutes.— The paragraph designated as the “Eleventh” of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) is amended, in the fifth sentence, by striking “ 15” each place the term appears and inserting “ 20”.

(b)

Federal Reserve Act.— Section 9(23) of the Federal Reserve Act (12 U.S.C. 338a) is amended, in the fifth sentence, by striking “ 15” each place the term appears and inserting “ 20”.

(c)

Study.— Not later than 2 years after the date of enactment of this section, and every 2 years thereafter, the Comptroller of the Currency and the Board of Governors of the Federal Reserve System shall each submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, a report, after consulting with the other agency in the development of such report, about public welfare investments that were made by associations under section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) and State member banks under section 9(23) of the Federal Reserve Act (12 U.S.C. 338a) in the 2 previous calendar years, that—

(1)

identifies the number of such investments, broken down by—

(A)

purpose;

(B)

type;

(C)

amount of assets of the association or State member bank that made the investment, using not fewer than 4 categories to describe the amount of assets of the associations and banks; and

(D)

State or other location;

(2)

identifies the dollar amounts of such investments, broken down by—

(A)

purpose;

(B)

type;

(C)

amount of assets of the association or State member bank that made the investment, using not fewer than 4 categories to describe the amount of assets of the associations and banks; and

(D)

State or other location; and

(3)

for each type of public welfare investment identified under paragraphs (1) and (2), a description of the substantive and procedural requirements that apply to each type of investment made under—

(A)

in the case of a report by the Comptroller of the Currency, section 5136 of the Revised Statutes of the United States (12 U.S.C. 24); or

(B)

in the case of a report by the Board of Governors, section 9(23) of the Federal Reserve Act (12 U.S.C. 338a).

SEC. 204. Addition of Affordable Housing Construction as an Eligible Activity.

(a)

Eligible Activity.— Section 105(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)), as amended by section 104 of this Act, is amended—

(1)

in paragraph (26), by striking “ and” at the end;

(2)

in paragraph (27), by striking the period at the end and inserting “ ; and”; and

(3)

by adding at the end the following:

“(28) the new construction of affordable housing, within the meaning given such term under section 215 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745), and which shall not exceed 20 percent of the amounts allocated to the recipient.”

(b)

Low- and Moderate-income Requirement.— Section 105(c)(3) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(c)(3)) is amended by striking “ or rehabilitation” and inserting “ , rehabilitation, or new construction”.

(c)

Applicability.— The amendments made by this section shall apply with respect only to amounts appropriated after the date of enactment of this Act.

SEC. 205. Better Use of Intergovernmental and Local Development (build) Housing Act.

(a)

Designation of Environmental Review Procedure.— The Department of Housing and Urban Development Act (42 U.S.C. 3531 et seq.) is amended by inserting after section 12 (42 U.S.C. 3537a) the following:

“SEC. 13. DESIGNATION OF ENVIRONMENTAL REVIEW PROCEDURE.

“(a) In General.—Except as provided in subsection (b), the Secretary may, for purposes of environmental review, decision making, and action pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other provisions of law that further the purposes of such Act, designate the treatment of assistance administered by the Secretary as funds for a special project for purposes of section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547).

“(b) Exception.—The designation described in subsection (a) shall not apply to assistance for which a procedure for carrying out the responsibilities of the Secretary under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other provisions of law that further the purposes of such Act, is otherwise specified in law.”

(b)

Tribal Assumption of Environmental Review Obligations.— Section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547) is amended—

(1)

by striking “ State or unit of general local government” each place it appears and inserting “ State, Indian Tribe, or unit of general local government”;

(2)

in paragraph (1)(C), in the heading, by striking “ State or unit of general local government” and inserting “ State, indian tribe, or unit of general local government”; and

(3)

by adding at the end the following:

“(5) Definition of indian tribe.—For purposes of this subsection, the term ‘Indian Tribe’ means a federally recognized tribe, as defined in section 4(13)(B) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(13)(B)).”

(c)

Implementation.—

(1)

In general.— Except as provided in paragraph (2), a designation of assistance under section 13 of the Department of Housing and Urban Development Act, as added by subsection (a), shall only apply with respect to funds appropriated after the date of enactment of this Act.

(2)

Exception.— If a grantee of assistance administered by the Secretary of Housing and Urban Development combines funds appropriated before and after the date of enactment of this Act to carry out a project, section 13 of the Department of and Urban Development Act, as added by subsection (a), shall not apply to that assistance.

SEC. 206. Unlocking Housing Supply Through Streamlined and Modernized Reviews Act.

(a)

Definitions.— In this section:

(1)

Infill project.— The term “infill project” means a project that—

(A)

occurs within the geographic limits of a municipality;

(B)

is adequately served by existing utilities and public services as required under applicable law;

(C)

is located on a site of previously disturbed land of not more than 5 acres and substantially surrounded by residential or commercial development;

(D)

will repurpose a vacant or underutilized parcel of land, or a dilapidated or abandoned structure; and

(E)

will serve a residential or commercial purpose.

(2)

Secretary.— The term “Secretary” means the Secretary of Housing and Urban Development.

(b)

NEPA Streamlining for HUD Housing-related Activities.—

(1)

In general.— The Secretary shall, in accordance with section 553 of title 5, United States Code, and section 103 of the National Environmental Policy Act of 1969 (42 U.S.C. 4333), expand and reclassify housing-related activities under the necessary administrative regulations as follows:

(A)

The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled “exempt activities” as set forth in section 58.34 of title 24, Code of Federal Regulations, as in effect on January 1, 2025:

(i)

Tenant-based rental assistance.

(ii)

Supportive services, including health care, housing services, permanent housing placement, day care, nutritional services, short-term payments for rent, mortgage, or utility costs, and assistance in gaining access to Federal Government and State and local government benefits and services.

(iii)

Operating costs, including maintenance, security, operation, utilities, furnishings, equipment, supplies, staff training, and recruitment and other incidental costs.

(iv)

Economic development activities, including equipment purchases, inventory financing, interest subsidies, operating expenses, and similar costs not associated with construction or expansion of existing operations.

(v)

Activities to assist home-buyers in the purchase of existing dwelling units or dwelling units under construction, including closing costs and down payment assistance, interest rate buydowns, and similar activities that result in the transfer of title.

(vi)

Affordable housing predevelopment costs related to obtaining site options, project financing, administrative costs and fees for loan commitment, zoning approvals, and other related activities that do not have a physical impact.

(vii)

Approval of supplemental assistance, including insurance or guarantee, to a project previously approved by the Secretary.

(viii)

Emergency home-owner or renter assistance for the repair or replacement of HVAC, hot water heaters, and other necessary existing utilities required under applicable law.

(B)

The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled, (i) “categorical exclusions not subject to section 58.5” and (ii) “categorical exclusions not subject to the Federal laws and authorities cited in section 50.4” in section 58.35(b) and section 50.19, respectively of title 24, Code of Federal Regulations, as in effect on January 1, 2025, if such activities do not materially alter environmental conditions and do not materially exceed the original scope of the project:

(i)

Acquisition, repair, improvement, reconstruction, or rehabilitation of public facilities and improvements (other than buildings) if the facilities and improvements are in place and will be retained in the same use without change in size or capacity of more than 20 percent, including replacement of water or sewer lines, reconstruction of curbs and sidewalks, and repaving of streets.

(ii)

Rehabilitation of 1-to-4 unit residential buildings, and existing housing-related infrastructure, such as repairs or rehabilitation of existing wells, septics, or utility lines that connect to that housing.

(iii)

New construction, development, demolition, acquisition, or disposition of up to 4 scattered site existing dwelling units where there is a maximum of 4 units on any 1 site.

(iv)

Acquisitions (including leasing) of, disposition of, or equity loans on an existing structure, or acquisition (including leasing) of vacant land if the structure or land acquired, financed, or disposed of will be retained for the same use.

(C)

The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled, (i) “categorical exclusions subject to section 58.5” and (ii) “categorical exclusions subject to the Federal laws and authorities cited in section 50.4” in section 58.35(a) and section 50.20, respectively, of title 24, Code of Federal Regulations, as in effect on January 1, 2025, if such activities do not materially alter environmental conditions and do not materially exceed the original scope of the project:

(i)

Acquisitions of open space or residential property, where such property will be retained for the same use or will be converted to open space to help residents relocate out of an area designated as a high-risk area by the Secretary.

(ii)

Conversion of existing office buildings into residential development, subject to—

(I)

a maximum number of units to be determined by the Secretary; and

(II)

a limitation on the change in building size of not more than 20 percent.

(iii)

New construction, development, demolition, acquisition, or disposition of 5 to 15 dwelling units where there is a maximum of 15 units on any 1 site. The units can be 15 1-unit buildings or 1 15-unit building, or any combination in between.

(iv)

New construction, development, demolition, acquisition, or disposition of 15 or more housing units developed on scattered sites when there are not more than 15 housing units on any 1 site, and the sites are more than a set number of feet apart as determined by the Secretary.

(v)

Rehabilitation of buildings and improvements in the case of a building for residential use with 5 to 15 units, if the density is not increased beyond 15 units and the land use is not changed.

(vi)

Infill projects consisting of new construction, rehabilitation, or development of residential housing units.

(vii)

The voluntary acquisition of properties—

(I)

located in—

(aa)

a floodway;

(bb)

a floodplain; or

(cc)

any other area, clearly delineated by the grantee; and

(II)

that have been impacted by a predictable environmental threat to the safety and well-being of program beneficiaries caused or exacerbated by a federally declared disaster.

(c)

Implementation.— For purposes of implementing the streamlining of environmental review for housing-related activities under subsection (b), the agency actions carried out under that subsection—

(1)

shall only apply with respect to funds appropriated after the effective date of those actions; and

(2)

shall not apply with respect to a grantee that combines funds appropriated before and after the effective date of those actions to carry out a project.

(d)

Report.— The Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual report during the 5-year period beginning on the date that is 2 years after the date of enactment of this Act that provides a summary of findings of reductions in review times and administrative cost reduction, with a particular focus on the affordable housing sector, as a result of the actions set forth in this section, and any recommendations of the Secretary for future congressional action with respect to revising categorical exclusions or exemptions under title 24, Code of Federal Regulations.

SEC. 207. Grants for Planning and Implementation Associated with Affordable Housing.

(a)

Definitions.— In this section:

(1)

Eligible entity.— The term “eligible entity” means—

(A)

a State, insular area, metropolitan city, or urban county, as those terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302); or

(B)

a regional planning agency or consortia of regional planning agencies.

(2)

Housing plan.— The term “housing plan” means a plan to, with respect to an area within the jurisdiction of an eligible entity—

(A)

increase the amount of available housing to meet the demand for such housing and any projected increase in the demand for such housing;

(B)

increase the affordability of housing;

(C)

increase the accessibility of housing for people with disabilities, including location-efficient housing;

(D)

preserve or improve the quality of housing;

(E)

reduce barriers to housing development; and

(F)

coordinate with transportation-related agencies.

(3)

Housing strategy.— The term “housing strategy” means a housing strategy required under section 105 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12705).

(4)

Secretary.— The term “Secretary” means the Secretary of Housing and Urban Development.

(b)

Establishment.— Not later than 1 year after the date of enactment of this Act, the Secretary shall establish a program to award grants on a competitive basis to eligible entities to assist planning and implementation activities associated with affordable housing, except that such grant awards may not be used for construction, alteration, or repair work.

(c)

Use of Amounts.—

(1)

By regional planning agencies.— If an eligible entity that receives amounts under this section is an eligible entity described in subsection (a)(1)(B), the eligible entity shall use those amounts to assist planning activities with respect to affordable housing, including—

(A)

the development of housing plans;

(B)

the substantial improvement of State or local housing strategies;

(C)

the development of new regulatory requirements and processes;

(D)

updating zoning codes;

(E)

increasing the capacity to conduct housing inspections;

(F)

increasing the capacity to reduce barriers to housing supply elasticity and housing affordability;

(G)

the development of local or regional plans for community development; and

(H)

the substantial improvement of community development strategies, including strategies designed to—

(i)

increase the availability of affordable housing and access to affordable housing;

(ii)

increase access to public transportation; and

(iii)

advance sustainable or location-efficient community development goals.

(2)

By states, insular areas, metropolitan cities, and urban counties.— If an eligible entity that receives amounts under this section is an eligible entity described in subsection (a)(1)(A), the eligible entity shall use those amounts to—

(A)

implement and administer housing strategies and housing plans;

(B)

implement and administer any plans to increase housing choice, address disparities in housing needs, and provide greater access to opportunity;

(C)

fund any community investments that support goals identified in a housing strategy or housing plan;

(D)

implement and administer regulatory requirements and processes with respect to reformed zoning codes;

(E)

increase the capacity to conduct housing inspections;

(F)

increase the capacity to reduce barriers to housing supply elasticity and housing affordability;

(G)

implement and administer local or regional plans for community development; and

(H)

fund any planning to increase—

(i)

the availability of affordable housing and access to affordable housing;

(ii)

access to public transportation; and

(iii)

any location-efficient community development goals.

(3)

Use for administrative costs.— A eligible entity that receives amounts under this section may not use more than 10 percent of those amounts for administrative costs.

(d)

Coordination.— To the extent practicable, the Secretary shall coordinate with the Administrator of the Federal Transit Administration in carrying out this section.

(e)

Expiration of Authority.— After the expiration of the 5-year period beginning on the date of enactment of this Act, the Secretary may not newly establish a program as described in this section.

(f)

Sunset.— The program established under this section shall terminate on the date that is 5 years after the date of enactment of this Act.

SEC. 208. Innovation Fund.

(a)

Definitions.— In this section:

(1)

Attainable housing.— The term “attainable housing” means housing that serves households earning not more than 120 percent of the area median income, if the majority of the housing units are affordable to households earning not more than 60 percent of the area median income.

(2)

Eligible entity.— The term “eligible entity” means—

(A)

a metropolitan city or urban county, as those terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302), that has demonstrated an objective improvement in housing supply growth, as determined by the Secretary, whose methodology for determining such growth is published in the Federal Register to allow for public comment not less than 90 days before the date on which the notice of funding opportunity is made available; or

(B)

a unit of general local government or an Indian tribe, as those terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302), that has demonstrated an objective improvement in housing supply growth, as determined by the Secretary, whose methodology for determining such improvement is published in the Federal Register to allow for public comment not less than 90 days before the date on which the notice of funding opportunity is made available.

(3)

Secretary.— The term “Secretary” means the Secretary of Housing and Urban Development.

(b)

Establishment of a Grant Program.—

(1)

(2)

List of eligible entities.— The Secretary shall make a list of eligible entities publicly available on the website of the Department of Housing and Urban Development.

(3)

Eligible purposes.— An eligible entity receiving a grant under this section may use funds to—

(A)

carry out any of the activities described in section 105 of the Housing and Community Development Act of 1974 (42 U.S.C. 5305);

(B)

carry out any of the activities permitted under the Local and Regional Project Assistance Program established under section 6702 of title 49, United States Code; and

(C)

carry out initiatives of the eligible entity that facilitate the expansion of the supply of attainable housing and that supplement initiatives the eligible entity has carried out, or is in the process of carrying out, as specified in the application submitted under paragraph (4).

(4)

Application.—

(A)

In general.— An eligible entity seeking a grant under this section shall submit to the Secretary an application that provides—

(i)

a description of each purpose for which the eligible entity will use the grant, and an attestation that the grant will be used only for 1 or more eligible purposes described in paragraph (3);

(ii)

data on characteristics of increased housing supply during the 3-year period ending on the date on which the application is submitted, which may include whether such housing—

(I)

serves households at a range of income levels; and

(II)

has improved the quality and affordability of housing in the jurisdiction of the eligible entity;

(iii)

a description of how each eligible purpose described in clause (i) may address a community need or advance an objective, or an aspect of an objective, included in the comprehensive housing affordability strategy and community development plan of the eligible entity under part 91 of title 24, Code of Federal Regulations, or any successor regulation (commonly referred to as a “consolidated plan”); and

(iv)

a description of how the eligible entity has carried out, or is in the process of carrying out, initiatives that facilitate the expansion of the supply of housing.

(B)

Initiatives.— Initiatives that meet the criteria described in paragraph (3)(C) include, but shall not be limited to—

(i)

increasing by-right uses, including duplex, triplex, quadplex, and multifamily buildings, in areas of opportunity;

(ii)

revising or eliminating off-street parking requirements to reduce the cost of housing production;

(iii)

revising minimum lot size requirements, floor area ratio requirements, set-back requirements, building heights, and bans or limits on construction that allow for denser and more affordable development;

(iv)

instituting incentives to promote dense development for communities where increased density is needed;

(v)

passing zoning overlays or other ordinances that enable the development of mixed-income housing;

(vi)

streamlining regulatory requirements and shortening processes, increasing code enforcement and permitting capacity, reforming zoning codes, or other initiatives that reduce barriers to increasing housing supply and affordability;

(vii)

eliminating restrictions against accessory dwelling units and expanding their by-right use;

(viii)

using local tax incentives or public financing to promote development of attainable housing;

(ix)

streamlining environmental regulations;

(x)

eliminating unnecessary manufactured-housing or cooperative housing regulations and restrictions;

(xi)

minimizing the impact of overburdensome energy and water efficiency standards on housing costs; and

(xii)

other activities that reduce the cost of construction, as determined by the Secretary.

(5)

Grants.—

(A)

In general.— The Secretary shall make not fewer than 25 grants on an annual basis (unless amounts appropriated to provide grant amounts consistent with subsection (b) are insufficient, in which case fewer grants may be awarded), with strong consideration of different geographical areas and a relatively even spread of rural, suburban, and urban communities.

(B)

Limitations on awards.— No grant awarded under this paragraph may be—

(i)

more than $10,000,000; or

(ii)

less than $250,000.

(C)

Priority.— When awarding grants under this paragraph, the Secretary shall give priority to an eligible entity that has—

(i)

demonstrated the use of innovative policies, interventions, or programs for increasing housing supply; and

(ii)

demonstrated a marked improvement in housing supply growth, as needed.

(D)

Grant administration and terms.— Projects assisted under this section for activities described in sector 23 of the North American Industry Classification System shall be treated as projects assisted under the Community Development Block Grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.).

(c)

Rules of Construction.— Nothing in this section shall be construed—

(1)

to authorize the Secretary to mandate, supersede, or preempt any local zoning or land use policy; or

(2)

to affect the requirements of section 105(c)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12705(c)(1)).

(d)

Sunset.— The program established under this section shall terminate on the date that is 7 years after the date of enactment of this Act.

(e)

Authorization of Appropriations.—

(1)

In general.— There is authorized to be appropriated to carry out this section $200,000,000 for each of fiscal years 2027 through 2031.

(2)

Adjustment.— The amount authorized to be appropriated under paragraph (1) shall be adjusted for inflation based on the Consumer Price Index for all Urban Customers published by the Bureau of Labor Statistics of the Department of Labor.

SEC. 209. Accelerating Home Building Act.

(a)

Definitions.— In this section:

(1)

Affordable housing.— The term “affordable housing” means housing for which the total monthly housing cost payment is not more than 30 percent of the monthly household income for a household earning not more than 80 percent of the area median income.

(2)

Covered structure.— The term “covered structure” means—

(A)

a low-rise or mid-rise structure with not more than 25 dwelling units; and

(B)

includes—

(i)

an accessory dwelling unit;

(ii)

infill development;

(iii)

a duplex;

(iv)

a triplex;

(v)

a fourplex;

(vi)

a cottage court;

(vii)

a courtyard building;

(viii)

a townhouse;

(ix)

a multiplex; and

(x)

any other structure with not less than 2 dwelling units that the Secretary considers appropriate.

(3)

Eligible entity.— The term “eligible entity” means—

(A)

a unit of general local government, as defined in section 102(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a));

(B)

a municipal membership organization; and

(C)

an Indian tribe, as defined in section 102(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)).

(4)

High opportunity area.— The term “high opportunity area” has the meaning given the term in section 1282.1 of title 12, Code of Federal Regulations, or any successor regulation.

(5)

Infill development.— The term “infill development” means residential development on small parcels in previously established areas for replacement with new or refurbished housing that utilizes existing utilities and infrastructure.

(6)

Mixed-income housing.— The term “mixed-income housing” means a housing development that is comprised of housing units that promote differing levels of affordability in the community.

(7)

Prereviewed designs.— The term “prereviewed designs”, also known as pattern books, means sets of construction plans that are assessed and approved by localities for compliance with local building and permitting standards to streamline and expedite approval pathways for housing construction.

(8)

Rural area.— The term “rural area” means any area other than a city or town that has a population of less than 50,000 inhabitants.

(9)

Secretary.— The term “Secretary” means the Secretary of Housing and Urban Development.

(b)

Authority.— The Secretary is authorized to award grants to eligible entities utilizing funds appropriated for such purpose to select prereviewed designs of covered structures of mixed-income housing for use in the jurisdiction of the eligible entity, except that such grant awards may not be used for construction, alteration, or repair work.

(c)

Considerations.— In reviewing applications submitted by eligible entities for a grant under this section, the Secretary shall consider—

(1)

the need for affordable housing in the service area of the eligible entity;

(2)

the presence of high opportunity areas in the jurisdiction of the eligible entity;

(3)

coordination between the eligible entity and a State agency; and

(4)

coordination between the eligible entity and State, local, and regional transportation planning authorities.

(d)

Set-aside for Rural Areas.— Of the amount made available in each fiscal year for grants under this section, the Secretary shall ensure that not less than 10 percent shall be used for grants to eligible entities that are located in rural areas.

(e)

Reports.— The Secretary shall require eligible entities receiving grants under this section to report on—

(1)

the impacts of the activities carried out using the grant amounts in improving the production and supply of affordable housing;

(2)

the prereviewed designs selected using the grant amounts in their communities;

(3)

the number of permits issued for housing development utilizing prereviewed designs; and

(4)

the number of housing units produced in developments utilizing the prereviewed designs.

(f)

Availability of Information.— The Secretary shall—

(1)

to the extent possible, encourage localities to make publicly available through a website information on the prereviewed designs selected and submitted to the Secretary by eligible entities receiving grants under this section, including information on the benefits of use of those designs; and

(2)

collect, identify, and disseminate best practices regarding such designs and make such information publicly available on the website of the Department of Housing and Urban Development.

(g)

Design Adoption and Repayment.— The Secretary may require an eligible entity to return to the Secretary any grant funds received under this section if the selected prereviewed designs submitted under this section have not been adopted during the 5-year period following receipt of the grant, unless that period is extended by the Secretary.

(h)

Technical Assistance.— The Secretary may set aside not more than 5 percent of amounts appropriated in a fiscal year to provide technical assistance to grant recipients under this section and pregrant technical assistance to prospective applicants.

SEC. 210. Revitalizing Empty Structures into Desirable Environments (reside) Act.

(a)

In General.— Subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12741 et seq.) is amended by adding at the end the following:

“SEC. 227. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE ENVIRONMENTS.

“(a) Definitions.—In this section:

“(1) Attainable housing.—The term ‘attainable housing’ means housing that serves households earning not more than 120 percent of the area median income, if the majority of the housing units are affordable to households earning not more than 60 percent of the area median income.

“(2) Converted housing unit.—The term ‘converted housing unit’ means a housing unit that is created using a covered grant.

“(3) Covered grant.—The term ‘covered grant’ means a grant awarded under the Pilot Program.

“(4) Eligible entity.—The term ‘eligible entity’ means a participating jurisdiction.

“(5) Pilot program.—The term ‘Pilot Program’ means the pilot program established under subsection (b).

“(6) Vacant and abandoned building.—The term ‘vacant and abandoned building’ means a property—

“(A) that was constructed for use as a warehouse, factory, mall, strip mall, or hotel, or for another industrial or commercial use; and

“(B)

(i) with respect to which—

“(I) a code enforcement inspection has determined that the property is not safe; and

“(II) not less than 90 days have elapsed since the owner was notified of the deficiencies in the property and the owner has taken no corrective action; or

“(ii) that is subject to a court-ordered receivership or nuisance abatement related to abandonment pursuant to State or local law or otherwise meets the definition of an abandoned property under State law.

“(b) Purpose of Grant Program.—Subject to the availability of funds appropriated for this subsection, the Secretary is authorized to establish a pilot program, spanning from fiscal years 2027 through 2031, which shall have the purpose of awarding grants on a competitive basis to eligible entities to convert vacant and abandoned buildings into attainable housing.

“(c) Amount of Grant.—

“(1) In general.—For any fiscal year for which not less than $100,000,000 is made available to carry out the Pilot Program, the amount of a covered grant shall be not less than $1,000,000 and not more than $10,000,000.

“(2) Fiscal years with lower funding.—For any fiscal year for which less than $100,000,000 is made available to carry out the Pilot Program pursuant to subsection (b), the Secretary shall seek to maximize the number of covered grants awarded.

“(d) Relation to Formula Allocation.—A covered grant awarded to an eligible entity shall be in addition to, and shall not affect, the formula allocation for the eligible entity under section 217.

“(e) Priority.—In awarding covered grants, the Secretary shall give priority to an eligible entity that—

“(1) will use the covered grant in a community that is experiencing economic distress;

“(2) will use the covered grant in a qualified opportunity zone (as defined in section 1400Z–1(a) of the Internal Revenue Code of 1986);

“(3) will use the covered grant to construct housing that will serve a need identified in the comprehensive housing affordability strategy and community development plan of the eligible entity under part 91 of title 24, Code of Federal Regulations, or any successor regulation (commonly referred to as a ‘consolidated plan’); or

“(4) has enacted ordinances to reduce regulatory barriers to conversion of vacant and abandoned buildings to housing, which shall not include any alteration of an ordinance that governs safety and habitability.

“(f) Use of Funds.—An eligible entity may use a covered grant for—

“(1) property acquisition;

“(2) demolition;

“(3) health hazard remediation;

“(4) site preparation;

“(5) construction, renovation, or rehabilitation; or

“(6) the establishment, maintenance, or expansion of community land trusts or housing cooperatives.

“(g) Waiver Authority.—In administering covered grants, the Secretary may waive, or specify alternative requirements for, any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by eligible entities of covered grant funds (except for requirements related to fair housing, nondiscrimination, labor standards, or the environment) if the Secretary makes a public finding that good cause exists for the waiver or alternative requirement.

“(h) Study; Report.—Not later than 180 days after the termination of the Pilot Program, the Secretary shall study and submit to Congress a report on the impact of the Pilot Program on—

“(1) improving the tax base of local communities;

“(2) increasing access to affordable housing, especially for elderly individuals, disabled individuals, and veterans;

“(3) increasing home-ownership; and

“(4) removing blight.”

(b)

Technical and Conforming Amendment.— The table of contents in section 1(b) of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101–625; 104 Stat. 4079) is amended by inserting after the item relating to section 226 the following:

“Sec. 227. Revitalizing empty structures into desirable environments.”.

SEC. 211. Housing Affordability Act.

(a)

In General.— Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is amended—

(1)

in section 206A (12 U.S.C. 1712a)—

(A)

in subsection (a), in the matter following paragraph (7), by striking “ (commencing in 2004” and all that follows through the period at the end and inserting the following: “ , commencing on July 1, 2025. The adjustment of the Dollar Amounts shall be calculated by the Secretary using the percentage change in the Price Deflator Index of Multifamily Residential Units Under Construction released by the Bureau of the Census from March of the previous year to March of the year in which the adjustment is made, or by the Secretary using an alternative indicator after publishing information about such alternative indicator in the Federal Register for public comment if the Price Deflator Index of Multifamily Residential Units Under Construction is not available or published.”; and

(B)

by amending subsection (b) to read as follows:

“(b) Publication.—

“(1) In general.—The Secretary shall publish in the Federal Register any adjustments made to the Dollar Amounts.

“(2) Rounding.—The dollar amount of any adjustment described in paragraph (1) shall be rounded to the next lower dollar.”

(2)

in section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A))—

(A)

by striking “ $38,025” and inserting “ $167,310”;

(B)

by striking “ $42,120” and inserting “ $185,328”;

(C)

by striking “ $50,310” and inserting “ $221,364”;

(D)

by striking “ $62,010” and inserting “ $272,844”;

(E)

by striking “ $70,200” and inserting “ $308,880”;

(F)

by striking “ , or not to exceed $17,460 per space”;

(G)

by striking “ $43,875” and inserting “ $193,050”;

(H)

by striking “ $49,140” and inserting “ $216,216”;

(I)

by striking “ $60,255” and inserting “ $265,122”;

(J)

by striking “ $75,465” and inserting “ $332,046”; and

(K)

by striking “ $85,328” and inserting “ $375,443”;

(3)

in section 213(b)(2) (12 U.S.C. 1715e(b)(2))—

(A)

by striking “ $41,207” and inserting “ $181,311”;

(B)

by striking “ $47,511” and inserting “ $209,048”;

(C)

by striking “ $57,300” and inserting “ $252,120”;

(D)

by striking “ $73,343” and inserting “ $322,709”;

(E)

by striking “ $81,708” and inserting “ $359,515”;

(F)

by striking “ $43,875” and inserting “ $193,050”;

(G)

by striking “ $49,710” and inserting “ $218,724”;

(H)

by striking “ $60,446” and inserting “ $265,962”;

(I)

by striking “ $78,197” and inserting “ $344,067”; and

(J)

by striking “ $85,836” and inserting “ $377,678”;

(4)

in section 220(d)(3)(B)(iii)(I) (12 U.S.C. 1715k(d)(3)(B)(iii)(I))—

(A)

by striking “ $38,025” and inserting “ $167,310”;

(B)

by striking “ $42,120” and inserting “ $185,328”;

(C)

by striking “ $50,310” and inserting “ $221,364”;

(D)

by striking “ $62,010” and inserting “ $272,844”;

(E)

by striking “ $70,200” and inserting “ $308,880”;

(F)

by striking “ $43,875” and inserting “ $193,050”;

(G)

by striking “ $49,140” and inserting “ $216,216”;

(H)

by striking “ $60,255” and inserting “ $265,122”;

(I)

by striking “ $75,465” and inserting “ $332,046”; and

(J)

by striking “ $85,328” and inserting “ $375,443”;

(5)

in section 221(d)(4)(ii)(I) (12 U.S.C. 1715l(d)(4)(ii)(I))—

(A)

by striking “ $37,843” and inserting “ $166,509”;

(B)

by striking “ $42,954” and inserting “ $188,997”;

(C)

by striking “ $51,920” and inserting “ $228,448”;

(D)

by striking “ $65,169” and inserting “ $286,744”;

(E)

by striking “ $73,846” and inserting “ $324,922”;

(F)

by striking “ $40,876” and inserting “ $179,854”;

(G)

by striking “ $46,859” and inserting “ $206,180”;

(H)

by striking “ $56,979” and inserting “ $250,708”;

(I)

by striking “ $73,710” and inserting “ $324,324”; and

(J)

by striking “ $80,913” and inserting “ $356,017”;

(6)

in section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A))—

(A)

by striking “ $35,978” and inserting “ $166,509”;

(B)

by striking “ $40,220” and inserting “ $188,997”;

(C)

by striking “ $48,029” and inserting “ $228,448”;

(D)

by striking “ $57,798” and inserting “ $286,744”;

(E)

by striking “ $67,950” and inserting “ $324,922”;

(F)

by striking “ $40,876” and inserting “ $179,854”;

(G)

by striking “ $46,859” and inserting “ $206,180”;

(H)

by striking “ $56,979” and inserting “ $250,708”;

(I)

by striking “ $73,710” and inserting “ $324,324”; and

(J)

by striking “ $80,913” and inserting “ $356,017”; and

(7)

in section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A))—

(A)

by striking “ $42,048” and inserting “ $185,011”;

(B)

by striking “ $48,481” and inserting “ $213,316”;

(C)

by striking “ $58,469” and inserting “ $257,263”;

(D)

by striking “ $74,840” and inserting “ $329,296”;

(E)

by striking “ $83,375” and inserting “ $366,850”;

(F)

by striking “ $44,250” and inserting “ $194,700”;

(G)

by striking “ $50,724” and inserting “ $223,186”;

(H)

by striking “ $61,680” and inserting “ $271,392”;

(I)

by striking “ $79,793” and inserting “ $351,089”; and

(J)

by striking “ $87,588” and inserting “ $385,387”.

(b)

Rule of Construction.— Nothing in this section or the amendments made by this section may be construed to limit the authority of the Secretary of Housing and Urban Development to revise the statutory exceptions for high-cost percentage and high-cost areas annual indexing.

(c)

Multifamily Loan Limit Study.— The Commissioner of the Federal Housing Administration, in consultation with the Secretary of Housing and Urban Development, shall conduct a study to assess the following in comparison to the loan limits prior to the amendments made under this section:

(1)

Whether the Commissioner has sufficient authority to increase loan limits for each multifamily mortgage insurance program at appropriate amounts, including to meet market demand.

(2)

The impacts that multifamily loan limit increases have had, if any, on—

(A)

the General Insurance and Special Risk Insurance Fund;

(B)

the change in volume of multifamily purchase and construction lending that is insured by the Federal Housing Administration; and

(C)

subject to the availability of data, the year-over-year change over the last 6 years in—

(i)

median and average lending costs as well as rent and house prices within the multifamily housing market; and

(ii)

multifamily housing supply, including the number of building permits issued as well as housing unit starts and completions.

(d)

Report.— Not later than 3 years after the date of enactment of this Act, the Commissioner of the Federal Housing Administration shall submit to Congress a report summarizing the findings of the Commissioner for the study conducted under subsection (b).

SEC. 212. Rental Assistance Demonstration Program.

The language under the heading “Rental Assistance Demonstration” in the Department of Housing and Urban Development Appropriations Act, 2012 (Public Law 112–55; 125 Stat. 673) is amended—

(1)

in the second proviso, by striking “ until September 30, 2029” and inserting “ for fiscal year 2012 and each fiscal year thereafter”;

(2)

in the fourth proviso, by striking “ 455,000” and inserting “ 555,000”;

(3)

in the twentieth proviso, as so designated before the date of enactment of this Act, by striking “ or other means:” and inserting “ or other means, including the adoption of a mandatory tenant lease and management plan addendum for a property with assistance converted, if not otherwise covered by another program, under this demonstration:”; and

(4)

by striking “ vouchers to project-based vouchers.” and inserting “ vouchers to project-based vouchers: Provided further, That the Secretary shall annually assess and publish findings regarding the impact of the conversion of assistance under the First Component of the demonstration with respect to the preservation and improvement of public housing, the amount of private sector leveraging resulting from such conversion transactions, the prevalence of pre-conversion residents remaining in or returning to the property following conversion, and the effect of such conversion on tenants, including the impact of such conversion on the rights maintained by tenants as enumerated in regulations and other documents conferring rights upon tenants as developed by the Secretary, and other matters the Secretary may determine appropriate: Provided further, That the Secretary may take remediative action or impose civil money penalties or other administrative sanctions for material violations of a requirement under the First and Second Components of this demonstration: Provided further, That nothing in the matter under this heading shall be construed to diminish, impair, or otherwise negatively affect the Rental Assistance Demonstration property rights of owners or rights of tenants, which shall remain enforceable by tenants, as enumerated in current law, regulations, and other agency guidance or notices as it relates to properties converted under the First and Second Components of the Rental Assistance Demonstration Program; Provided further, That any property owned by the public housing agency shall be used to replace, create, preserve, improve, or expand affordable housing supply, including as part of mixed use developments, and no conversion under the Rental Assistance Demonstration shall be used for sporting, private, or for-profit purposes, excluding those which maintain or expand housing supply which may use an affordable housing tax credit or other housing affordability program.”.

SEC. 213. Build Now Act.

(a)

Definitions.— In this section:

(1)

Covered recipient.— The term “covered recipient” means a metropolitan city or urban county, as those terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302), that receives funds under section 106.

(2)

Current annual growth rate.— The term “current annual growth rate”, with respect to an eligible recipient and a fiscal year, means the average annual percentage increase in the number of housing units in the jurisdiction of the eligible recipient, as calculated by the Secretary, during the period—

(A)

beginning with the third quarter of the sixth preceding fiscal year; and

(B)

ending with the third quarter of the preceding fiscal year.

(3)

Eligible recipient.— The term “eligible recipient” means any covered recipient unless—

(A)

(i)

the median Small Area Fair Market Rent in the jurisdiction of the covered recipient is at or below the 60th percentile of median Small Area Fair Market Rents in the jurisdictions of all covered recipients; and

(ii)

the median home value in the jurisdiction of the covered recipient is below the median home value for the United States;

(B)

the annual rental vacancy rate in the jurisdiction of the covered recipient is greater than the national annual rental vacancy rate for the most recent year available, as published by the Bureau of the Census;

(C)

during the 3-year period preceding the date on which the Secretary allocates funds under section 106, the jurisdiction of the covered recipient has been the subject of a major disaster or emergency declaration under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170, 5191); or

(D)

the covered recipient lacks the legal authority to enact or update zoning and permitting ordinances.

(4)

Extremely high-growth recipient.— The term “extremely high-growth recipient” means an eligible recipient for which the current annual growth rate is at or above 4 percent.

(5)

Housing growth improvement rate.— The term “housing growth improvement rate”, with respect to an eligible recipient and a fiscal year, means the quotient of—

(A)

(i)

the current annual growth rate of the eligible recipient, minus

(ii)

the prior annual growth rate of the eligible recipient; and

(B)

the sum obtained by adding the absolute values of the current annual growth rate and the prior annual growth rate of the eligible recipient.

(6)

Prior annual growth rate.— The term “prior annual growth rate”, with respect to an eligible recipient and a fiscal year, means the average annual percentage increase in the number of housing units in the jurisdiction of the eligible recipient, as calculated by the Secretary, during the period—

(A)

beginning with the third quarter of the 11th preceding fiscal year; and

(B)

ending with the third quarter of the sixth preceding fiscal year.

(7)

Secretary.— The term “Secretary” means the Secretary of Housing and Urban Development.

(8)

Section 106.— The term “section 106” means section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306).

(b)

Adjustments to Community Development Block Grant Allocations.—

(1)

In general.— In allocating amounts to an eligible recipient under section 106 for a fiscal year, the Secretary shall adjust the allocation based on the housing growth improvement rate of the eligible recipient, in accordance with paragraph (2) of this subsection.

(2)

Adjustments.—

(A)

Housing growth improvement rate at or above median; extremely high-growth recipients.—

(i)

In general.— If, with respect to a fiscal year for which the allocation under section 106 is being determined, the housing growth improvement rate for an eligible recipient is at or above the median housing growth improvement rate for all eligible recipients other than extremely high-growth recipients, or if an eligible recipient is an extremely high-growth recipient, the Secretary shall allocate to the eligible recipient for that fiscal year, in addition to the amount that would otherwise be allocated to the eligible recipient under section 106, a bonus amount, as determined under clause (ii) of this subparagraph.

(ii)

Bonus amount.— For purposes of clause (i), the bonus amount for an eligible recipient for a fiscal year shall be equal to the product of—

(I)

the aggregate amount by which allocations to eligible recipients are decreased under subparagraph (B) for that fiscal year; and

(II)

the quotient of—

(aa)

the difference in the number of housing units, between the third quarter of the second preceding fiscal year and the third quarter of the preceding fiscal year, in the jurisdiction of the eligible recipient, as calculated by the Secretary; and

(bb)

the difference in the number of housing units, between the third quarter of the second preceding fiscal year and the third quarter of the preceding fiscal year, in the jurisdictions of all eligible recipients that receive a bonus amount under this paragraph, as calculated by the Secretary.

(B)

Housing growth improvement rate below median.— If, with respect to a fiscal year for which the allocation under section 106 is being determined, the housing growth improvement rate for an eligible recipient is below the median housing growth improvement rate for all eligible recipients other than high-growth outliers, the Secretary shall decrease the amount that would otherwise be allocated to the eligible recipient under section 106 for that fiscal year by 10 percent.

(c)

Calculation of Housing Units.—

(1)

Housing and urban development requirements.— In calculating the number of housing units in the jurisdiction of an eligible recipient under any provision of this section, the Secretary shall—

(A)

use the Current Address Count Listing Files and other data products, as needed, of the Bureau of the Census tabulated from the Master Address File; and

(B)

make calculations at the block level, using boundaries that reflect the most current boundaries.

(2)

Census bureau and postal service requirements.— The Bureau of the Census and the United States Postal Service shall provide any relevant data to the Secretary upon request to assist the Secretary in making a calculation described in paragraph (1).

(3)

Adjustment of calculation periods.— The Secretary may adjust the calculation periods under subparagraphs (A) and (B) of subsection (a)(2), subparagraphs (A) and (B) of subsection (a)(6), and items (aa) and (bb) of subsection (b)(2)(A)(ii)(II) by not more than 2 months to achieve alignment with the data provided by the Bureau of the Census.

(d)

Annual Report on Housing Growth Improvement Rate.— Before allocating funds under section 106 for a fiscal year, the Secretary shall publish a report that—

(1)

includes the housing growth improvement rate for each eligible recipient; and

(2)

lists, for the most recent fiscal year for which allocations were made under section 106—

(A)

the eligible recipients that received a bonus amount under subsection (b)(2)(A); and

(B)

the eligible recipients for which the allocation under section 106 was decreased under subsection (b)(2)(B) of this section.

(e)

Notification; Implementation Dates.—

(1)

Notification.—

(A)

In general.— Not later than 60 days after the date of enactment of this Act, the Secretary shall notify each eligible recipient of the recipient’s housing growth improvement rate and whether that housing growth improvement rate is above, at, or below the median housing growth improvement rate for all eligible recipients other than extremely high-growth recipients.

(B)

Guidance.— As part of the notification under subparagraph (A), the Secretary shall share guidance, including resources developed by the Department of Housing and Urban Development, on best practices and recommendations for policies to reduce regulatory barriers to housing and increase housing supply.

(2)

Implementation dates.— Subsection (b) shall take effect beginning with the third full fiscal year after the date of enactment of this Act and remain in effect through fiscal year 2043.

(3)

No effect on previous appropriations.— This section shall not apply to amounts appropriated before the date of enactment of this Act.

Title II — Building More in America