Provides competitive HUD grants to transform neighborhoods that have both extreme poverty and severely distressed housing into mixed-income, safe, and well-served communities. Grants fund planning, housing construction/rehab, replacement of demolished public or assisted units (generally one-for-one), rental assistance, supportive services, job and education links, and other community improvements while requiring resident protections, affirmative marketing, accessibility, environmental review, reporting, and Secretary oversight.

Sets program rules for who can apply (local governments, public housing agencies, certain nonprofit or project owners), how funds may be used, deadlines for HUD rulemaking, monitoring and reporting requirements, and authorizes $1 billion for FY2026 (and such sums as necessary thereafter). The Secretary may phase underwriting, reassign implementation if grantees fail benchmarks, reclaim unobligated funds, and permit a limited waiver to replace as little as 90% of demolished units in narrow cases.