CHAPTER 165—INCREASING HOUSING SUPPLY

SUBCHAPTER I—BUILDING MORE IN AMERICA

        

SUBCHAPTER II—HOME-OWNERSHIP FOR MAIN STREET AMERICA

        

SUBCHAPTER III—MISCELLANEOUS

        

SUBCHAPTER I—BUILDING MORE IN AMERICA

§19501. 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 title 26.

(Pub. L. 119–101, title II, §201, July 11, 2026, 140 Stat. 859.)

§19502. 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 4852 of this title, a grant under the Healthy Homes Initiative administered by the Secretary pursuant to sections 1701z–1 and 1701z–2 of title 12, 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 2682(c) or 2684 of title 15; or

(ii) a Home Certification Organization under the Energy Star program established by section 6294a of this title or the WaterSense program under section 6294b of this title, 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 4702 of title 12.

(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 794 of title 29; 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 794 of title 29; 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 1437f(o) of this title, 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) ¹ 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 3547 of this title; 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.

(Pub. L. 119–101, title II, §202, July 11, 2026, 140 Stat. 860.)

Editorial Notes

References in Text

The Housing and Community Development Act of 1974, referred to in subsecs. (a)(9)(A)(i) and (b)(2)(H), (10)(B)(i), is Pub. L. 93–383, Aug. 22, 1974, 88 Stat. 633. Title I of the Act is classified principally to chapter 69 (§5301 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables.

The Cranston-Gonzalez National Affordable Housing Act, referred to in subsecs. (a)(9)(A)(ii) and (b)(10)(B)(ii), is Pub. L. 101–625, Nov. 28, 1990, 104 Stat. 4079. Subtitle A of title II of the Act is classified generally to part A (§12741 et seq.) of subchapter II of chapter 130 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables.

The Consolidated Appropriations Act, 2024, referred to in subsec. (a)(9)(A)(iii), is Pub. L. 118–42, Mar. 9, 2024, 138 Stat. 25. For complete classification of this Act to the Code, see Tables.

Section 11 of the Housing Opportunity Program Extension Act of 1996, referred to in subsec. (a)(9)(A)(iv), is section 11 of Pub. L. 104–120, Mar. 28, 1996, 110 Stat. 841, which is set out as a note under section 12805 of this title.

The Housing Act of 1949, referred to in subsec. (a)(9)(A)(v), is act July 15, 1949, ch. 338, 63 Stat. 413. Title V of the Act is classified generally to subchapter III (§1471 et seq.) of chapter 8A of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1441 of this title and Tables.

The Neighborhood Reinvestment Corporation Act, referred to in subsec. (a)(9)(A)(vi), is title VI of Pub. L. 95–557, Oct. 31, 1978, 92 Stat. 2115, which is classified generally to subchapter I (§8101 et seq.) of chapter 90 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 8101 of this title and Tables.

The Social Security Act, referred to in subsec. (a)(11), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Titles XVI, XIX, and XXI of the Act are classified generally to subchapters XVI (§1381 et seq.), XIX (§1396 et seq.), and XXI (§1397aa et seq.), respectively, of chapter 7 of this title. Part A of title IV of the Act is classified generally to part A (§601 et seq.) of subchapter IV of chapter 7 of this title. For complete classification of this Act to the Code, see section 1305 of this title and Tables.

The Food and Nutrition Act of 2008, referred to in subsec. (a)(11)(D), is Pub. L. 88–525, Aug. 31, 1964, 78 Stat. 703, which is classified generally to chapter 51 (§2011 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 2011 of Title 7 and Tables.

The Energy Conservation and Production Act, referred to in subsec. (b)(10)(B)(iii), is Pub. L. 94–385, Aug. 14, 1976, 90 Stat. 1125. Part A of title IV of the Act is classified generally to part A (§6861 et seq.) of subchapter III of chapter 81 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6801 of this title and Tables.

The Native American Housing Assistance and Self-Determination Act of 1996, referred to in subsec. (b)(10)(B)(iv), is Pub. L. 104–330, Oct. 26, 1996, 110 Stat. 4016, which is classified principally to chapter 43 (§4101 et seq.) of Title 25, Indians. For complete classification of this Act to the Code, see Short Title note set out under section 4101 of Title 25 and Tables.

¹ So in original. Probably should be "subclause (IV)".

§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 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 and section 4333 of this title, 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 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 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.

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

§19504. 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 5302 of this title; 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 12705 of this title.

(4) Secretary

The term "Secretary" means the Secretary of Housing and Urban Development.

(b) Establishment

Not later than 1 year after July 11, 2026, 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 July 11, 2026, 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 July 11, 2026.

(Pub. L. 119–101, title II, §207, July 11, 2026, 140 Stat. 873.)

§19505. 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) Establishment

Not later than 1 year after July 11, 2026, the Secretary shall establish a program to award grants on a competitive basis to eligible entities that have increased their local housing supply.

(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; 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 12705(c)(1) of this title.

(d) Sunset

The program established under this section shall terminate on the date that is 7 years after July 11, 2026.

(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.

(Pub. L. 119–101, title II, §208, July 11, 2026, 140 Stat. 875.)

Editorial Notes

References in Text

The Housing and Community Development Act of 1974, referred to in subsec. (b)(5)(D), is Pub. L. 93–383, Aug. 22, 1974, 88 Stat. 633. Title I of the Act is classified principally to chapter 69 (§5301 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables.

§19506. 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 5302(a) of this title;

(B) a municipal membership organization; and

(C) an Indian tribe, as defined in section 5302(a) of this title.

(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.

(Pub. L. 119–101, title II, §209, July 11, 2026, 140 Stat. 878.)

§19507. 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 5302 of this title, 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 5170 or 5191, respectively, of this title; 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 July 11, 2026, 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 July 11, 2026, and remain in effect through fiscal year 2043.

(3) No effect on previous appropriations

This section shall not apply to amounts appropriated before July 11, 2026.

(Pub. L. 119–101, title II, §213, July 11, 2026, 140 Stat. 885.)

SUBCHAPTER II—HOME-OWNERSHIP FOR MAIN STREET AMERICA

§19521. Homes are for people, not corporations

(a) Definitions

In this section:

(1) Consumer reporting agency

The term "consumer reporting agency" has the meaning given the term in section 1681a of title 15).¹

(2) Excepted purchase

The term "excepted purchase" means any purchase of a single-family home that is—

(A) newly constructed, renovated, or a rental conversion for sale by a large institutional investor and not as a residence rented pending sale;

(B) pursuant to a build-to-rent program where the large institutional investor purchases, constructs, or constructs and retains a newly constructed single-family homes to be managed as a rental property, whether as part of a community made up exclusively of renter-occupied single-family homes or as part of a community made up of single-family homes that are both owner- and renter-occupied;

(C) pursuant to a renovate-to-rent program that—

(i) substantially rehabilitates single-family homes that do not meet structural or core system elements of local building codes; and

(ii) makes improvements in an aggregate dollar amount of not less than 15 percent of the purchase price of the single-family home;

(D) pursuant to a homeownership program that—

(i) requires rental payments and any other fees that are not greater than those collected by the large institutional investor on other similarly situated single-family homes not covered by the eligible homeownership program;

(ii) is subject to a contract between the large institutional investor and renter that shall be considered a consumer credit transaction secured by a dwelling or real property;

(iii) provides for positive reporting of rental payments to consumer reporting agencies for any renter, who shall be informed of and opts into such reporting; and

(iv) requires contribution of meaningful financial support from the large institutional investor, including price concessions, for the purchase of the single-family home by the renter;

(E) pursuant to a program to boost homeownership that—

(i) provides for positive reporting of rental payments to consumer reporting agencies for any renter, who shall be informed of and opts into such reporting;

(ii) provides for the right of first refusal and a 30-day "first look" period; and

(iii) may entail the meaningful financial support from the large institutional investor, including price concessions, for the purchase of a single-family home by the renter (whether it is the home the renter occupies or another home);

(F) in connection with the satisfaction of debts previously contracted in good faith and where the large institutional investor has the right to repossess the single-family home under such contract;

(G) undertaken by a mortgage servicer, lender, or other entity that has a legal right to a single-family home, for the purpose of loss mitigation or compliance with servicing or investor obligations, and not as a long-term investment strategy, and is solely as a result of—

(i) a foreclosure;

(ii) a deed-in-lieu of foreclosure;

(iii) enforcement of a mortgage, deed of trust, or other security interest; or

(iv) operation of law following borrower default;

(H) purchased from another large institutional investor that either owned the single-family home on July 11, 2026, or purchased the single-family home in compliance with this section;

(I) purchased from an investor not covered under this section, so long as the purchase occurred not more than 2 years after the effective date under subsection (f);

(J) newly constructed, renovated, or a rental conversion that is intended and operated for occupancy as part of a community for households with 1 or more members aged 55 years or older, and satisfies visitability standards established by the Secretary of Housing and Urban Development; or

(K) purchased through a single purchase or combination or series of purchases described in subparagraphs (A) through (J).

(3) Large institutional investor

(A) In general

The term "large institutional investor"—

(i) means an investment fund, corporation, general or limited partnership, limited liability company, joint venture, association, or other for-profit entity that is a legal entity structured in a manner that is not aforementioned that—

(I) is engaged, in whole or in part, in the business of investing in, owning, renting, managing, or holding single-family homes; and

(II) alone or in concert with 1 or more other entities, beginning after July 11, 2026, directly or indirectly has investment control of not less than 350 single-family homes in the aggregate, not including any single-family home purchased in an excepted purchase made after July 11, 2026; and

(ii) does not include any local, State, Tribal, or Federal government entity or instrumentality thereof.

(B) Rule of construction

For purposes of this paragraph, an entity has direct or indirect investment control over a single-family home if the entity—

(i) owns, or has primary authority or fiduciary responsibility to make material investment or management decisions relating to, the single-family home;

(ii) is, or directly or indirectly controls, the general partner or managing member of the entity that owns the single-family home;

(iii) is or controls the investment manager, management company, or investment advisor of the entity that owns the single-family home;

(iv) owns or controls more than 25 percent of any class of equity interests of the entity that owns the single-family home, unless such entity is a passive investor; or

(v) otherwise controls the entity that owns the single-family home.

(4) Purchase

The term "purchase" includes any purchase, transfer, or other acquisition of a single family home, including through mergers, acquisitions, construction, foreclosures, or bulk purchases, whether or not for cash consideration.

(5) Single-family home

The term "single-family home"—

(A) means a structure that contains 2 or fewer dwelling units that are each intended for residential occupancy by a single household; and

(B) does not include a manufactured home, as defined in section 5402 of this title.

(b) Prohibition on purchases by large institutional investors

(1) In general

No large institutional investor may purchase, or enter into a contract to directly or indirectly purchase, any single-family home.

(2) Exceptions

The prohibition under paragraph (1) shall not apply to—

(A) any excepted purchase; or

(B) any purchase of a single-family home in connection with a restructuring or other reorganization of ownership of single-family homes that were owned or purchased on or before July 11, 2026.

(3) Rule of construction

Nothing in this section may be construed to—

(A) require any large institutional investor to divest or otherwise sell any single-family home purchased before July 11, 2026; or

(B) prevent the filing of a petition, or otherwise affect any bankruptcy proceeding, under title 11.

(4) Implementation

(A) In general

In consultation with the Secretary of Housing and Urban Development, the Director of Federal Housing Finance Agency, and the Chair of the Securities and Exchange Commission, the Secretary of the Treasury may issue regulations in accordance with the notice and comment rulemaking procedures under section 553 of title 5 to carry out the purposes of this section, including regulations to—

(i) minimize market disruptions upon identifying a risk of material negative impact on the housing market, including an impact on the ability of market participants to dispose of single-family homes in an orderly fashion; and

(ii) mitigate, to the extent possible, negative impacts on consumers and communities.

(B) Rule of construction

For the avoidance of doubt, no regulation issued under subparagraph (A) may amend the definitions of the terms defined under subsection (a), including to—

(i) alter the scope of excepted purchases in a manner that would undermine the goal of expanding the number of single-family homes available to individual households for purchase;

(ii) alter any type of excepted purchase in a manner that would undermine the goal of expanding the number of single-family homes available to individual households for purchase;

(iii) add any category of large institutional investor as an eligible class if not determined by this section; or

(iv) alter the quantitative threshold in the definition of "large institutional investor".

(c) Renter outreach resource established

(1) In general

The Secretary of Housing and Urban Development (in this subsection referred to as the "Secretary") shall, not later than 180 days after July 11, 2026, establish a renter outreach resource that consists of a toll-free telephone number and a public website designed to assist renters of residential properties owned by a large institutional investor in—

(A) notifying Federal agencies about disputes relating to the rental of such properties, including disputes about potential violations of Federal law;

(B) sharing information about such disputes with other Federal agencies, including other Federal agencies that manage similar disputes;

(C) monitoring such disputes; and

(D) resolving such disputes, to the extent practicable.

(2) Response to outreach

(A) In general

The Secretary shall establish reasonable procedures to—

(i) promptly respond, in writing where appropriate, to a renter who provides information to the Secretary about a dispute using the renter outreach resource established under paragraph (1); and

(ii) document such responses.

(B) Contents

Responses provided under subparagraph (A) shall include, where appropriate, information about—

(i) steps that have been taken by the Secretary or another Federal agency in response to the information about the dispute provided by the renter, including determining the appropriate large institutional investor involved as described in paragraph (3);

(ii) any responses received by the Secretary or another Federal agency from the large institutional investor related to such dispute; and

(iii) any outcome of the dispute, to the extent practicable.

(3) Investigation of potential violations of Federal law

(A) In general

The Secretary shall promptly process and investigate any information relating to a dispute received through the renter outreach resource established under paragraph (1) about a potential violation of Federal law that is received from a renter of a residential property owned by a large institutional investor through the renter outreach resource established under paragraph (1), including—

(i) requesting information from a large institutional investor;

(ii) determining the appropriate large institutional investor involved in the dispute; and

(iii) sharing information about such potential violation of Federal law with any relevant Federal agencies, as the Secretary may determine appropriate.

(B) Responses to requests for information

Upon request for information made pursuant to subparagraph (A), the Secretary shall provide a large institutional investor the opportunity to respond, including regarding whether such large institutional investor currently owns the property described in such request for information.

(4) Information for appropriate State authority

When the Secretary receives information about a potential violation of State law or about a dispute received through the renter outreach resource, from a renter of a residential property owned by a large institutional investor through the renter outreach resource established under paragraph (1), the Secretary shall, at a minimum, provide the renter with contact information for the appropriate, State-specific, State authority authorized to process and investigate such information.

(5) Notice about renter outreach resource

Each large institutional investor shall—

(A) provide to each renter of a residential property owned by such investor at the time such renter first occupies such home and annually thereafter—

(i) written notice about the renter outreach resource established under paragraph (1); and

(ii) the name, phone number, and email address of the person or entity responsible for receiving and addressing renter disputes for the large institutional investor, and update the name, phone number, and email address within 30 days if such information changes prior to the subsequent time at which such notice is required to be provided; and

(B) prominently feature information about the renter outreach resource established under paragraph (1) on a public website of such investor that is accessible by such renter.

(6) Annual report to the Congress

(A) In general

The Secretary shall, not later than March 31 of each year, submit to the Congress a public report which analyzes and aggregates the information received or obtained pursuant to this subsection during the prior year that includes—

(i) information about the types and the number of disputes received about potential violations of Federal law;

(ii) information about the types and the number of disputes received about potential violations of State law;

(iii) where practicable, information about the resolution of such disputes; and

(iv) information provided to the Secretary of Housing and Urban Development under paragraph (8).

(B) Anonymization of data

Any data included in a report that is submitted under this paragraph shall be aggregated or anonymized so as to protect any individual dispute or personally identifiable information received through the renter outreach resource.

(7) Protection of personal information

In complying with the requirements of this subsection, the Secretary shall take such measures as the Secretary determines are necessary to provide for the protection of personally identifiable information received through the renter outreach resource in a manner that conforms with existing standards for protection of the confidentiality of personally identifiable information.

(8) Annual notification

Not later than 180 days after July 11, 2026, and not later than December 31st of each year thereafter, each person or entity that satisfies the definition of a large institutional investor, as such term is defined in subsection (a), shall—

(A) notify the Secretary each year whether such owner is a large institutional investor as defined in subsection (a); and

(B) in such notification, identify how many single-family homes such large institutional investor has direct or indirect investment control of as of the date of the submission of such notice, and the city and State where each such single-family home is located, unless such large institutional investor owns 10 or fewer single-family homes in such city.

(d) Enforcement

(1) Civil penalties

The Secretary of the Treasury, or the Attorney General at the request of the Secretary of the Treasury, may bring an action against a large institutional investor that violates subsection (b) for a civil penalty in an amount that is not more than $1,000,000 per violation, or 3 times the purchase price of the property involved, whichever is greater.

(2) Transfer to HUD for homeownership expansion activities

For fiscal year 2027 and each fiscal year thereafter, to the extent and in the amounts provided in advance in appropriations Acts, civil penalties assessed under this section shall be transferred to and available to the Secretary of Housing and Urban Development to provide additional funding for 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.), to be allocated in accordance with the formula under that program, for new construction, acquisition, and rehabilitation of single-family homes and to provide assistance grants to first-time homebuyers, which may be for downpayments, closing costs, and interest rate buydowns.

(e) Studies on large institutional investors

(1) GAO report

Not later than 2 years after the date on which the prohibition under subsection (b)(1) takes effect, and again not later than 10 years after that date, the Comptroller General of the United States 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 a report on—

(A) the impact of the ownership by large institutional investors of single-family homes on housing availability and affordability for renters and homebuyers; and

(B) the effectiveness of this section in reducing demand by large institutional investors for single-family homes and expanding homeownership for renters and homebuyers.

(2) HUD report

Not later than 2 years after the date on which the prohibition under subsection (b)(1) takes effect, and again not later than 10 years after that date, the Secretary of the Housing and Urban Development, in consultation with the Secretary of the Treasury, the Administrator of the Rural Housing Service, the Executive Director of the Loan Guaranty Service of the Department of Veterans Affairs, the Chair of Securities and Exchange Commission, and the Director of the Federal Housing Finance Agency, 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 a report on—

(A) whether there should be adjustments to the definition of the term "large institutional investor";

(B) the financial impact of this section on large institutional investors, renters, and homebuyers; and

(C) any legislative recommendations regarding ways to improve the authorities provided under this section to increase the supply and affordability of single-family homes for purchase by individual homebuyers.

(3) Sense of Congress

It is the sense of Congress that—

(A) this section is intended to expand the number of single-family homes available to individuals for purchase and is aimed at preserving and expanding the supply of single-family homes available to individuals; and

(B) any further study on the effectiveness of this section and any legislative recommendations therefrom should consider this sense of Congress.

(f) Effective date

The requirements and prohibitions under subsections (b) and (d) of this section—

(1) shall take effect on the date that is 180 days after July 11, 2026; and

(2) are repealed on the date that is 15 years after the effective date under paragraph (1).

(Pub. L. 119–101, title X, §1001, July 11, 2026, 140 Stat. 976.)

Editorial Notes

References in Text

The Cranston-Gonzalez National Affordable Housing Act, referred to in subsec. (d)(2), is Pub. L. 101–625, Nov. 28, 1990, 104 Stat. 4079. Subtitle A of title II of the Act is classified generally to part A (§12741 et seq.) of subchapter II of chapter 130 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables.

¹ So in original. Closing parenthesis probably should not appear.

SUBCHAPTER III—MISCELLANEOUS

§19531. Severability

If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the remainder of the Act, and the application of such provisions to other persons or circumstances, shall not be affected thereby.

(Pub. L. 119–101, title XII, §1201, July 11, 2026, 140 Stat. 984.)

Editorial Notes

References in Text

This Act, referred to in text, is Pub. L. 119–101, July 11, 2026, 140 Stat. 846, known as the 21st Century ROAD to Housing Act. Titles II, X, and XII of the Act are classified principally to subchapters I, II, and III, respectively, of this chapter. For complete classification of this Act to the Code, see Tables.