Sponsors (16)
The bill creates substantial long-term, deeper affordable housing—especially near transit—by allowing discounted transfers of surplus federally assisted land, at the trade-off of reduced federal receipts, potential impacts on developer returns and project activity, and added monitoring and administrative burdens for governments and nonprofits.
Low-income and very-low-income renters gain long-term, deeper affordable housing: developers must reserve ≥40% of units at ≤60% AMI (rent capped at 30% of adjusted income) and at least 20% of those reserved units (≥8% of total) must serve households ≤30% AMI, all for 30 years.
Encourages housing near transit by enabling transfer of surplus federally assisted land to local governments, nonprofits, or qualified developers for transit-oriented development.
Simplifies disposition of unneeded federal property by allowing transfers 'with no further obligation to the Government,' reducing administrative burden for recipients and speeding reuse of land for affordable housing.
Taxpayers may get less than fair-market value when property is transferred below full sale price to meet affordability goals, reducing potential federal receipts.
Private developers who receive property must maintain long-term affordability covenants, which can reduce development returns and could slow or deter some projects—particularly for small developers.
Monitoring and enforcing 30-year affordability covenants will require federal or local oversight resources, increasing administrative costs and workload for local governments and nonprofits.
Based on analysis of 2 sections of legislative text.
Permits transfer of surplus federally‑acquired transportation property for transit‑oriented affordable housing with 30‑year affordability covenants (40% ≤60% AMI; subset for ≤30% AMI).
Official title: To amend title 23, United States Code, to authorize real property acquired with assistance under chapter 1 of such title to be transferred to certain entities for the development of transit-oriented dwelling units, and for other purposes.
Introduced May 15, 2025 by Kevin Mullin · Last progress May 15, 2025
Authorizes the Secretary of Transportation to allow recipients of Federal-aid highway assistance to transfer surplus federally‑acquired real property, without further federal obligation, to local governments, nonprofits, or qualified third parties for development of transit‑oriented housing. Transferees must commit for 30 years to keep at least 40% of units affordable at ≤60% area median income (with 20% of those reserved at ≤30% AMI) and cap rent at 30% of adjusted income. The bill inserts the new authority into title 23 of the U.S. Code and updates the title analysis; it does not itself appropriate funds or create additional federal funding programs.