New Federal Funding for Housing Planning Available

The Biden-Harris administration announced this week that year two of the Pathways to Removing Obstacles to Housing (PRO Housing) Program is open with $100 million in grant money available for communities, regions, and states around the country — a $15 million increase from the $85 million available in year one. This new round of grants focuses on communities that already have local reform projects in the works. The application deadline is October 15, 2024.

The PRO Housing Grant Program provides support to state and local governments and metropolitan planning organizations (MPOs) serious about boosting housing supply and lowering costs by removing barriers and reforming local codes and processes. Eligible uses for funds are flexible to accommodate communities of all sizes and can support reform efforts, ranging from relaxing parking requirements to planning for more diverse housing options.

"Round two funding of the competition prioritizes communities with an acute need for affordable housing that already demonstrated a commitment to overcoming local barriers,"
— HUD Principal Deputy Assistant Secretary for Community Planning and Development Marion McFadden.

Planners and APA — together with housing champions in Congress — secured a second funding round earlier this year when the Fiscal Year 2024 spending package was signed into law by President Biden. U.S. Senator Brian Schatz (D-HI) and Representative Lisa Blunt Rochester (D-DE) were pivotal in building bipartisan support for the incentive program in both the Senate and House. Rep. Blunt Rochester offered a bipartisan amendment to the House Transportation, Housing, and Urban Development Appropriations Act last year that added $100 million in funding to the HUD budget for the PRO Housing Grant program. This amendment was included in the final version.

APA anticipates the year two awardee announcements before the end of this administration.

Year three funding and the pathway forward

With year two funding secured and applications open, APA now shifts its focus to advocating for a third year of funding for the program. The PRO Housing Grant Program was included in the Fiscal Year 2025 Senate version of the Transportation, Housing, and Urban Development (THUD) spending bill. The bill moved out of the Senate Committee on Appropriations in July with strong bipartisan support and will likely hit the floor this fall.

While no initial funding for the program is included in the House version of the THUD appropriations bill, APA is working with housing champions in the House to get PRO Housing included in the final version of the House bill once it lands on the floor. Get ready to urge Congress to include the Senate funding level of $100 million in the final version of the bill and the final FY25 spending package later this year.

By providing critical resources and incentives directly to communities, this program demonstrates the impactful role that the federal government can play in supporting communities working to increase housing production through reform. This bipartisan effort marks a huge win for communities that are taking steps to eliminate regulatory barriers to housing production and increase supply.

Federal planning support marks the way for real change

Earlier this year, the first round of PRO Housing Grants was awarded to 21 communities and states, emphasizing that planning is a crucial component to solving the housing supply shortage. This first round of funding included strong support for planning.

Milwaukee, Wisconsin, a year one community grant recipient has implemented Phase 2 of a "Growing MKE" initiative, which includes updates to the local code to permit a wider variety of housing styles, increase densities in multifamily zones, lower parking requirements, increase "by-right" permitting. They have also updated design standards to build upon local developer capacity. Hawaii, a year one state-level recipient, is planning to establish a state task force aimed at providing technical assistance to local communities. This is a state model that APA has encouraged other states to adopt as well. Some smaller communities like Iowa City, Iowa, Bend, Oregon, and Ketchum, Idaho, also received support.

The PRO Housing Grant Program demonstrates that demand for federal support on local zoning reform is strong. Demand for the first-round grant money exceeded expectations with a ratio of thirteen dollars requested for every dollar available. Congress must continue to push this momentum forward toward federal action that empowers their communities and their planners to make housing attainable for all.

What comes next

The results of this summer's Planners' Day on Capitol Hill have not gone unnoticed by Congressional members and staff. In June, nearly 100 planners from across the country gathered online for Planners' Day to push APA's zoning reform agenda on Capitol Hill. Advocates had the opportunity to tell their Congressional members why communities of all sizes need federal support and funding for zoning reform.

Through APA's Planners' Advocacy Network, APA members have written to members of Congress, sharing the stories of their communities and urging Congress to support another year of PRO Housing funding.

In September, APA will host the annual Congressional Fly-In where top advocates from around the country will fly to Washington, D.C., to advocate for federal action on zoning reform like the PRO Housing Grant Program.