Sponsors (2)
The bill directs federal COVID funds to a limited demonstration that quickly produces targeted workforce and affordable housing and supports zoning reform in growth areas, but it does so by diverting pandemic funds, limiting scale and duration of affordability, and favoring better-resourced jurisdictions.
Local governments and public housing agencies in workforce-growth areas receive competitive grants to build or convert properties into new workforce and affordable housing, increasing local housing supply where jobs are expanding.
At least 30% of units produced with grant funds must be affordable, guaranteeing a meaningful share of new units serve lower-income households.
Grants can fund zoning reforms and technical assistance to help jurisdictions speed approvals and lower development costs, reducing barriers that slow housing production.
The program transfers 10% of identified COVID-related funds into this demonstration, reducing the pool available for the funds' original pandemic-related purposes and potentially crowding out other uses.
A 5-year affordability requirement risks that units will revert to market rates after that period, limiting the program's contribution to long-term affordable housing stock.
Limiting the demonstration to only 15 competitive grants restricts the program's scale and geographic reach, so many communities in need may not receive support.
Based on analysis of 2 sections of legislative text.
Creates a HUD competitive demonstration grant program to award up to 15 grants supporting zoning reform and development/rehab of workforce and affordable housing.
Introduced April 2, 2026 by Juan Ciscomani · Last progress April 2, 2026
Creates a competitive HUD demonstration grant program that awards up to 15 grants to eligible entities to speed up development of workforce and affordable housing by supporting local zoning and regulatory reforms and by funding development, conversion, rehabilitation, and related technical assistance. HUD must set the program within one year, require applicants to document existing and proposed local reforms with timelines, prioritize places that have already removed barriers, and, where practicable, distribute awards across urban, suburban, and rural areas.