Sponsor
Joseph Neguse
Representative · D-CO
Representative · D-CO
The bill aims to make income limits more locally accurate—raising eligibility for many in high-cost and mountain areas and improving predictability for agencies—but increases administrative complexity, risks uneven or gameable fund allocations, and could dilute targeting or slow housing production.
Low-income renters in high-cost or mountain areas (including rural and tribal communities) could see higher income limits via a 'high housing cost' adjustment and mountain-community rules, increasing eligibility for housing assistance and reducing rent burden.
Local and state housing agencies get clearer AMI definitions and greater flexibility to choose small-area or alternative AMI methods, improving predictability and enabling better local targeting of scarce housing funds.
Native, rural, and Mountain Division programs may be better tailored to local conditions (through program-specific rules and the mountain-community definition), improving program design and resource allocation for remote and tribal areas.
Low-income households in lower-cost parts of counties could lose eligibility if ZIP-code or small-area AMI narrows service areas, reducing access to assistance for some renters.
Fragmented AMI rules across neighboring areas will increase administrative complexity and compliance burdens for landlords, applicants, and housing agencies, raising transaction costs and confusion.
Using smaller-area AMI measures risks gaming or inconsistent allocations that could redirect federal housing funds away from higher-need areas, undermining equitable distribution of resources.
Based on analysis of 4 sections of legislative text.
Allows mountain-area counties to use ZIP Code or contiguous-county AMI calculations for covered HUD/USDA housing programs and requires HUD to study AMI alternatives and seasonal-worker effects.
Official title: To establish a waiver program to allow for ZIP Code localization area median income calculations, and for other purposes.
Introduced September 30, 2025 by Joseph Neguse · Last progress September 30, 2025
Creates an optional HUD waiver allowing mountain-area counties to compute Area Median Income (AMI) using ZIP-code areas or contiguous county groups for certain HUD and USDA housing programs, and requires HUD to study alternatives to the current AMI method with a focus on affordability for low-income and seasonal-worker households in mountain communities. HUD must implement the waiver program within 90 days of enactment and produce a public report with findings and recommendations within two years.