| Guidance for State and Local Code Reforms |
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Housing Supply Frameworks (Sec.107) HUD will produce frameworks and models for state and local zoning and land use codes to support reform efforts across the nation and help determine what solutions are working. |
HUD to issue guidelines for public comments within 2 years and final version within 3 years. |
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Guidance for 'Single Stair' Building Code Reform (Sec. 102) New federal guidelines will be created for communities working to update building codes and speed permitting for 'single stair' / point access design multifamily housing. Pilot grant programs are also established. |
HUD to issue guidelines within 18 months. Appropriations required for grants. |
| Funding for Local Planning and Implementation |
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Innovation Grants and Support for Local Reforms (Sec. 207, 208) Two new grant programs would support communities undertaking local reforms. One program would provide support to help with zoning, land use, permitting, and other code overhauls. The other program would reward communities implementing reforms with funding to support housing production and supportive infrastructure. |
HUD to establish grant programs with 1 year. Appropriations required. |
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Updates to Community Development Block Grants (Sec. 104, 204, 213, 504) CDBG will get several important changes, including more flexibility for use on affordable housing projects, requirements on identifying barriers to production and cataloging of publicly owned land, authorization of the disaster recovery program (CDBG-DR), and an incentive program to reward communities for increasing housing production. |
New requirements mandatory starting FY27. New eligibilities available starting FY27. Competition incentive takes effect third FY after enactment. CDBG-DR effective on enactment and sunsets in 3 years. |
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Grants for Pre-Approved Plans and Designs (Sec. 209) The Accelerating Home Building section authorizes new grants to help communities develop pre-approved building and site plans to support the production of diverse housing options. |
HUD to establish grant program and reporting requirements. Appropriations required. |
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Flexibility in Combating Homelessness (Sec. 503) States and localities receiving Emergency Solutions Grant funding will be able to request a waiver of the statutory 60 percent spending cap on emergency shelter beds and street outreach. |
HUD to develop waiver guidance. Applies to FY27-30 grants. |
| Removal of Federal Barriers to Housing Development |
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Targeted Streamlining for Environmental Reviews (Sec. 103, 205, 206) HUD and USDA will coordinate joint environmental reviews, and new streamlining would be put in place for target in-fill housing development. |
HUD, USDA to issue updated program guidance. HUD to issue new rule. |
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Removal of Federal 'Chassis Rule' for Manufactured Housing (Sec. 301, 302, 303, 304) The federal rule requiring a permanent chassis for any manufactured housing regulated under the HUD Code would be repealed to support wider adoption of modular and manufactured housing. A federal study would also identify barriers to modular housing development. |
HUD to update rule and form for state certification. State certification due within 1 year. HUD to update energy standards within 1 year. HUD to issue report on barriers within 1 year. |
| Housing Finance and Ownership |
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New Funding for Preserving Housing (Sec. 202) A 'Whole Home' repair program would provide grants and forgivable loans to low- and moderate-income homeowners and landlords to support the repair, weatherization, accessibility and renovation of existing affordable housing. |
HUD to establish new grant program. Appropriations required. |
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Increasing Private Capital and Federal Finance for Housing (Sec. 203, 210, 211, 501, 502) The bills include reforms to several housing finance rules and programs. The public welfare cap on banks would increase to 20%. Federal finance programs would increase access for accessory dwelling units and manufactured housing. A new program with HOME will support conversion of vacant and abandoned buildings into attainable housing. |
HUD to issue new HOME rules within 1 year. HUD BABA review due within 180 days and new guidance 90 days following the review. USDA report due in 6 months. USDA to establish new program and issue updated rules and guidance for existing programs. OCC/Federal Reserve to new notice on bank rules. HUD to establish new RESIDE grants subject to Congressional appropriations. |
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New Opportunity Zone Incentive (Sec. 201) HUD is charged with creating a bonus for applicants or projects located within a designated Opportunity Zone for their discretionary grant programs. |
HUD to update existing grant criteria. |
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Build-to-Rent Development Preserved (Sec. 1001) Restrictions on build-to-rent ownership timelines were removed while maintaining some new restrictions for institutional investor ownership of single-family housing. |
Treasury to issue new rule. Prohibition takes effect 180 days after enactment. |