Sponsors (6)
The bill channels substantial new federal resources and strong tenant‑protections toward preserving and transforming severely distressed public and assisted housing—benefiting many low‑income renters—but does so with extensive planning, reporting, affordability, and replacement mandates that raise costs, administrative burdens, and create barriers for some applicants and private partners.
Low-income renters and public-housing residents will see materially more resources and program priority (new appropriations and an ongoing authorization, with at least 80% of funds/assisted units directed to public housing), increasing available funding for preservation, relocation assistance, and supportive services.
Current tenants of public or assisted housing gain strong relocation protections and return rights (required notice, consultations, guaranteed relocation assistance, preference for replacement units, comparable temporary housing, and minimum voucher leasing periods), reducing the risk of permanent displacement during redevelopment.
Residents benefit from much longer and clearer affordability commitments (minimum 30-year or longer recorded use restrictions and resident-collaborated affordability plans covering multi‑decades), protecting long‑term affordability of preserved or replaced units.
Grantees, HUD, and taxpayers will face substantial new planning, monitoring, reporting, and compliance costs (50‑year affordability plans with frequent updates, detailed reporting, accessibility and fair‑housing compliance, one‑for‑one replacement monitoring), increasing administrative burden and diverting resources from services or construction.
Faster demolition under transformation exemptions and redevelopment requirements can still lead to temporary displacement or loss of homes if replacement housing is delayed or built off‑site, exposing low‑income tenants to instability despite return rights.
Long recorded use restrictions and extensive affordability commitments (30–50 year minimums) plus relocation/quality requirements may deter private owners and newer developers from participating, shrink the pool of preservation partners, and complicate financing for projects.
Based on analysis of 17 sections of legislative text.
Authorizes competitive HUD grants and rental/relocation assistance to transform extremely poor, severely distressed neighborhoods into mixed‑income communities with one‑for‑one replacement and resident protections.
Introduced June 12, 2025 by Lisa Blunt Rochester · Last progress June 12, 2025
Authorizes a competitive HUD grant program to rebuild and revitalize extremely poor neighborhoods with severely distressed housing into mixed‑income communities. It funds housing transformation (rehab, replacement, acquisition), resident relocation and rental assistance, supportive services, and community improvements while requiring one‑for‑one replacement of demolished or disposed public/assisted units and strong resident protections. The law sets who can apply, what neighborhoods qualify, required resident engagement and return rights, long‑term affordability commitments, accessibility and fair housing requirements, reporting and transparency duties for HUD, and administrative enforcement tools (grant withdrawal, reallocation, and substitution of implementers). It authorizes $1 billion for FY2026 and ongoing funds as needed, with specific limits for planning, technical assistance, and public‑housing targeting.