---
kind: "section"
citation: "42 U.S.C. § 19503"
title: "42"
title_heading: "The Public Health and Welfare"
number: "19503"
heading: "Unlocking Housing Supply Through Streamlined and Modernized Reviews Act"
release: "119-102"
url: "https://uscodex.org/usc/42/19503"
units:
  - "Chapter 165 — Increasing Housing Supply"
  - "Subchapter I — Building More in America"
---

# §19503. Unlocking Housing Supply Through Streamlined and Modernized Reviews Act

- (a) **Definitions—** In this section:
  - (1) **Infill project—** The term “infill project” means a [project](/usc/42/11360.md?p=20) 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](/usc/42/1490p–2.md?p=r-3) and Urban Development.
- (b) **NEPA streamlining for HUD housing-related activities—**
  - (1) **In general—** The [Secretary](#a-2) shall, in accordance with [section 553 of title 5](/usc/5/553.md) and [section 4333 of this title](/usc/42/4333.md), expand and reclassify [housing](/usc/42/1490p–2.md?p=r-3)-related activities under the necessary administrative regulations as follows:
    - (A) The following [housing](/usc/42/1490p–2.md?p=r-3)-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](/cfr/24/58.34.md), as in effect on January 1, 2025:
      - (i) Tenant-based rental assistance.
      - (ii) [Supportive services](/usc/42/3002.md?p=54), including health care, [housing](/usc/42/1490p–2.md?p=r-3) services, permanent [housing](/usc/42/1490p–2.md?p=r-3) placement, day care, nutritional services, short-term payments for rent, mortgage, or utility costs, and assistance in gaining access to Federal Government and [State](/usc/42/201.md?p=f) and [local government](/usc/42/8401a.md) benefits and services.
      - (iii) Operating costs, including maintenance, security, operation, utilities, furnishings, equipment, supplies, staff [training](/usc/42/285e–2.md?p=b-2), and recruitment and other incidental costs.
      - (iv) Economic development activities, including equipment purchases, [inventory](/usc/42/4370m.md?p=14) financing, interest subsidies, operating expenses, and similar costs not associated with [construction](/usc/42/7479.md?p=2-C) or expansion of existing operations.
      - (v) Activities to assist home-buyers in the purchase of existing dwelling [units](/usc/42/1395w–114b.md?p=g-2) or dwelling [units](/usc/42/1395w–114b.md?p=g-2) under [construction](/usc/42/7479.md?p=2-C), including closing costs and down payment assistance, interest rate buydowns, and similar activities that result in the transfer of title.
      - (vi) Affordable [housing](/usc/42/1490p–2.md?p=r-3) predevelopment costs related to obtaining site options, [project](/usc/42/11360.md?p=20) 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](/usc/42/11360.md?p=20) previously approved by the [Secretary](#a-2).
      - (viii) Emergency home-[owner](/usc/42/13641.md?p=4) 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](/usc/42/1490p–2.md?p=r-3)-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled, (i) “[categorical exclusions](/usc/42/4336e.md?p=1) not subject to section 58.5” and (ii) “[categorical exclusions](/usc/42/4336e.md?p=1) 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](/cfr/24.md), 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](/usc/42/11360.md?p=20):
      - (i) Acquisition, repair, improvement, reconstruction, or rehabilitation of public [facilities](/usc/42/11049.md?p=4) and improvements (other than [buildings](/usc/42/6881.md?p=i-3)) if the [facilities](/usc/42/11049.md?p=4) 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](/usc/42/1395w–114b.md?p=g-2) residential [buildings](/usc/42/6881.md?p=i-3), and existing [housing](/usc/42/1490p–2.md?p=r-3)-related infrastructure, such as repairs or rehabilitation of existing wells, septics, or utility lines that connect to that [housing](/usc/42/1490p–2.md?p=r-3).
      - (iii) New [construction](/usc/42/7479.md?p=2-C), development, demolition, acquisition, or disposition of up to 4 scattered site existing dwelling [units](/usc/42/1395w–114b.md?p=g-2) where there is a maximum of 4 [units](/usc/42/1395w–114b.md?p=g-2) 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](/usc/42/1490p–2.md?p=r-3)-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled, (i) “[categorical exclusions](/usc/42/4336e.md?p=1) subject to section 58.5” and (ii) “[categorical exclusions](/usc/42/4336e.md?p=1) 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](/cfr/24.md), 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](/usc/42/11360.md?p=20):
      - (i) Acquisitions of open space or [residential property](/usc/42/2304.md?p=m), 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](#a-2).
      - (ii) Conversion of existing [office](/usc/42/3058f.md?p=1) [buildings](/usc/42/6881.md?p=i-3) into residential development, subject to—
        - (I) a maximum number of [units](/usc/42/1395w–114b.md?p=g-2) to be determined by the [Secretary](#a-2); and
        - (II) a limitation on the change in [building](/usc/42/6881.md?p=i-3) size of not more than 20 percent.
      - (iii) New [construction](/usc/42/7479.md?p=2-C), development, demolition, acquisition, or disposition of 5 to 15 dwelling [units](/usc/42/1395w–114b.md?p=g-2) where there is a maximum of 15 [units](/usc/42/1395w–114b.md?p=g-2) on any 1 site. The [units](/usc/42/1395w–114b.md?p=g-2) can be 15 1-[unit](/usc/42/1395w–114b.md?p=g-2) [buildings](/usc/42/6881.md?p=i-3) or 1 15-[unit](/usc/42/1395w–114b.md?p=g-2) [building](/usc/42/6881.md?p=i-3), or any combination in between.
      - (iv) New [construction](/usc/42/7479.md?p=2-C), development, demolition, acquisition, or disposition of 15 or more [housing](/usc/42/1490p–2.md?p=r-3) [units](/usc/42/1395w–114b.md?p=g-2) developed on scattered sites when there are not more than 15 [housing](/usc/42/1490p–2.md?p=r-3) [units](/usc/42/1395w–114b.md?p=g-2) on any 1 site, and the sites are more than a set number of feet apart as determined by the [Secretary](#a-2).
      - (v) Rehabilitation of [buildings](/usc/42/6881.md?p=i-3) and improvements in the case of a [building](/usc/42/6881.md?p=i-3) for residential use with 5 to 15 [units](/usc/42/1395w–114b.md?p=g-2), if the density is not increased beyond 15 [units](/usc/42/1395w–114b.md?p=g-2) and the land use is not changed.
      - (vi) [Infill projects](#a-1) consisting of new [construction](/usc/42/7479.md?p=2-C), rehabilitation, or development of residential [housing](/usc/42/1490p–2.md?p=r-3) [units](/usc/42/1395w–114b.md?p=g-2).
      - (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](/usc/42/274l–1.md?p=4) beneficiaries caused or exacerbated by a federally declared [disaster](/usc/42/5204.md?p=2).
- (c) **Implementation—** For purposes of implementing the streamlining of environmental review for [housing](/usc/42/1490p–2.md?p=r-3)-related activities under [subsection (b)](#b), the agency actions carried out under that subsection—
  - (1) shall only apply with respect to [funds](/usc/42/12854.md?p=3) appropriated after the effective date of those actions; and
  - (2) shall not apply with respect to a grantee that combines [funds](/usc/42/12854.md?p=3) appropriated before and after the effective date of those actions to carry out a [project](/usc/42/11360.md?p=20).
- (d) **Report—** The [Secretary](#a-2) shall submit to the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs of the Senate and the Committee on Financial Services of the House of [Representatives](/usc/42/3058f.md?p=5) an annual report during the 5-year period beginning on the date that is 2 years after July 11, 2026, that provides a summary of findings of reductions in review times and administrative cost reduction, with a particular focus on the affordable [housing](/usc/42/1490p–2.md?p=r-3) sector, as a result of the actions set forth in this section, and any recommendations of the [Secretary](#a-2) for future congressional action with respect to revising [categorical exclusions](/usc/42/4336e.md?p=1) or exemptions under [title 24, Code of Federal Regulations](/cfr/24.md).

## Source credit

(Pub. L. 119–101, title II, § 206, July 11, 2026, 140 Stat. 870.)