Changes how HUD allocates Community Development Block Grant (CDBG) funds by tying each eligible jurisdiction’s allocation to a new “housing growth improvement rate” based on Census address counts. Jurisdictions below the median housing-growth improvement rate will have their CDBG allocation reduced (10% cut), and those at/above the median or designated “extremely high-growth” receive bonuses paid from the pooled reductions.

HUD must use Census Master Address File-derived address counts at the census-block level, may shift some measurement months to match available data, publish an annual report showing each jurisdiction’s score and whether it lost or gained funds, and notify each eligible recipient with its score plus HUD guidance and resources to reduce regulatory barriers and increase housing supply. The new counting and allocation rule starts in the second full fiscal year after enactment and runs through fiscal year 2042.