Six Takeaways: The Latest in Federal Housing Action
In continuation of the Biden-Harris administration's Housing Supply Action Plan, the White House has announced a new series of federal actions aimed at closing the housing supply gap.
As planners know, solving the housing shortage requires action from every level of government. Through incentives, technical assistance, access to data, and funding, the federal government can contribute to increasing the housing supply and lowering costs by supporting locally-led reform. From Planners' Day on Capitol Hill to writing their Congressional representatives, planning advocates have long been pushing for programs like the landmark Pathways to Reducing Obstacles to Housing (PRO Housing) Program — the second round of which is now accepting applications through October 15, 2024 — that provide the federal funding and technical assistance that states and communities need to continue making progress on housing reform.
Federal Support Vital for Housing Reform
The latest wave of updates to the federal Housing Supply Action Plan includes open applications for the second round of PRO Housing grants, new clarifications on TIFIA loans, a new "legacy challenge" program, and more.
Here are our top takeaways on the latest in federal housing action:
1. PRO Housing funding increased
The second round of funding for the PRO Housing program includes an additional $15M of funding for a total of $100M in grants. The expanded program will allow for 30 new award recipients and an increased incentive for local zoning reform. As the first round of PRO Housing received 13 times more applications than funding available, this signals recognition that there is an ongoing, growing demand for federal support for local reform.
The PRO Housing program will place an even greater emphasis on communities that are already making progress in overcoming barriers to housing production through local reform, prioritizing those that have implemented initial reforms or demonstrated clear commitment. This creates an additional incentive for more states and localities to pursue reforms that lower housing costs and increase production.
2. Streamlined environmental reviews for transit-oriented development
The U.S. Department of Transportation (DOT) is announcing new guidance to streamline and clarify requirements for DOT loans for residential development near transit. Most TOD projects qualify for an exclusion under the National Environmental Policy Act (NEPA), which will speed construction and conversion of housing through the TIFIA loan program.
3. Accelerated production for housing subject to historic preservation reviews
The Advisory Council on Historic Preservation (ACHP) proposed a new tool that would accelerate housing and adaptive reuse projects that are subject to Sec 106 historic preservation reviews. These changes will streamline the review process to speed housing production and lower housing costs for millions of units across the country.
4. A new "Legacy Challenge" program
HUD's Sec 108 loan guarantee program will create a new "Legacy Challenge" program aimed at providing new support and flexibility for adaptive reuse, commercial-to-residential conversions, and rehabilitation of existing housing.
Crucially, this program will also support upgrades and installation of infrastructure that is essential to support increased housing.
5. Support for manufactured housing
The expansion of the HUD code for manufactured housing will enable innovative housing manufacturing for duplexes, triplexes, and quadplexes for the first time.
Manufactured housing is an approach growing in popularity in communities across the country as a means to significantly lower housing costs and increase supply. Enabling more housing types to be built under the HUD code will extend the cost-saving benefits of manufactured housing to more communities.
6. Federal support for local permitting reform
A cumbersome permitting process is one common barrier to housing production.
Improved programs to offer federal-level analysis and technical assistance will enable more communities to streamline the permitting process through reforms and innovations like pattern books and ultimately speed up housing production.
Housing Supply Accelerator Playbook
More on local Permitting Reform
Learn more about pattern books and other actions your community can take to streamline the permitting process and increase housing production in the Housing Supply Accelerator Playbook.
APA applauds the administration for centering housing supply and reform at the heart of its economic agenda. These actions are a promising step in the right direction for increased federal support for local zoning reform.
The latest in Federal Action
Stay tuned for more analysis of what the new changes mean for planners and housing reform efforts in our communities by joining the Planners' Advocacy Network.
Top image: Getty/CatLane