Sponsors (4)
Introduced June 12, 2025 by Emanuel Cleaver · Last progress June 12, 2025
The bill channels substantial federal funding and strict long-term affordability and resident-protection rules to preserve and revitalize distressed public housing and neighborhoods — improving stability and services for low-income residents — but raises project costs, administrative burdens, and federal discretion that may reduce owner participation, slow some redevelopments, and concentrate decisionmaking at HUD.
Low-income renters and families will see a substantial increase in permanently affordable housing because the bill funds preservation/creation (initial $1B FY2026 and continued appropriations) and requires long recorded affordability periods (typically 30–50 years).
Public housing residents displaced for redevelopment are better protected because the bill requires one-for-one replacement, comparable replacement units (size/access to transit/services), return preferences, relocation assistance, and minimum notice periods.
Taxpayers and communities will get stronger accountability and transparency because HUD must publish program metrics, grantee reports, and transformation plans, and the Secretary can replace nonperforming grantees and recover/reallocate unobligated funds.
Owners, developers, and PHAs face substantially higher compliance and administrative costs (accessibility, affirmative marketing, environmental review, long-term use restrictions, reporting), which will increase per-unit subsidy needs and may reduce the number of projects funded or built.
Private owners and some developers may decline to participate because 30–50 year recorded use restrictions limit future sale, refinancing, or redevelopment options, narrowing the pool of properties available for preservation and new projects.
Residents may face temporary displacement, disruption, or gaps in housing if redevelopment is phased or replacement units are delayed; a limited waiver could also leave up to ~10% of displaced families without comparable on-site replacement.
Based on analysis of 17 sections of legislative text.
Creates a competitive grant program to transform extremely poor, distressed neighborhoods into mixed-income communities, requiring strong resident protections and one-for-one replacement of public/assisted units.
Creates a competitive federal grant program to fund "transformation plans" that convert extremely poor, severely distressed neighborhoods into mixed-income communities with safe, affordable housing, services, transit access, jobs, and improved public assets. Grants and rental assistance are authorized (including a $1 billion grant authorization for FY2026), and recipients must follow strict resident-protection rules (including one-for-one replacement of demolished or disposed public/assisted units, right-to-return guarantees, fair housing and accessibility requirements), reporting, and long-term affordability commitments.