Sponsors (10)
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Makes a broad set of changes to federal rental housing policy: it expands and funds the Housing Choice Voucher (Section 8) program, creates a new HUD‑run housing navigation grant for PHAs to help voucher families find units, requires small‑area (zip code) fair market rents beginning in FY2026, adds “lawful source of income” as a protected characteristic under the Fair Housing Act, and directs HUD to issue related rulemaking and program setup deadlines. The bill also phases in entitlement status for tenant‑based vouchers five years after enactment and updates authorization and appropriations language for several housing programs.
Amend the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.): make changes in section 3(a)(1)(A), section 8(o)(2)(A)(i), and section 9(e)(2)(A).
In section 9(e)(2)(A) of the United States Housing Act of 1937: (i) strike "and" at the end of clause (vi); (ii) redesignate clause (vii) as clause (viii) and shift its indentation; and (iii) insert a new clause (vii) that reads: "the amount of public housing rental income forgone by the public housing agency as a result of lowering the percentage of monthly adjusted income for the calculation of rental payments; and."
Amend Section 521(a)(3) of the Housing Act of 1949 by "striking in each place it occurs and inserting ." (text shown as amended in the section).
Amend Section 202(c)(3) of the Housing Act of 1959 by "striking and inserting ." (text shown as amended in the section).
Amend Section 811(d)(3) of the Cranston-Gonzalez National Affordable Housing Act by "striking and inserting ." (text shown as amended in the section).
Who is affected and how:
Low‑ and moderate‑income families and renters: The legislation directly targets households eligible for housing assistance (families at or below 80% AMI). More vouchers and renewal funding should increase access to rental assistance and long‑term stability once tenant‑based vouchers become an entitlement after five years.
Voucher holders and applicants: New navigation grants and expanded PHA capacity aim to help voucher families locate units more quickly and work with reluctant landlords. Small‑area FMRs may better reflect local rent variation, affecting voucher payment standards and family unit search outcomes.
Landlords and rental property owners: Adding lawful source of income protections limits owner rejection of tenants who pay rent with certain lawful income sources (for example housing vouchers or rental assistance). Small‑area FMRs may change payment rates to owners depending on zip‑code rent levels.
Public housing agencies and nonprofit partners: PHAs will receive new authorities and potential funding for navigation services and will need to implement small‑area FMR rules, distribute new vouchers, manage subgrants, and comply with HUD rulemaking and SEMAP‑related timeliness requirements.
HUD and Federal budget: HUD must issue rulemaking, administer new programs, and implement statutory changes. The bill authorizes and directs funding flows (including a recurring $20M navigation grant authorization and voucher funding over multiple fiscal years), increasing HUD program responsibilities and federal outlays.
Potential consequences and tradeoffs:
Adds a new paragraph (23) to subsection (o) of 42 U.S.C. 1437f establishing a housing navigation grant program for public housing agencies, specifying eligible uses, allowing subgrants to nonprofits, and authorizing $20,000,000 for FY2026 and each fiscal year thereafter.
Amends 42 U.S.C. 1437g(h)(1) by inserting additional text after the existing paragraph (the text to be inserted is not specified in this section).
Amends section 8(o)(1) of the United States Housing Act of 1937 by modifying subparagraph (B) to refer to subparagraphs (D) and (F) and by adding a new subparagraph (F) that requires area fair market rents used under subparagraph (B) to be established by zip code areas starting in fiscal year 2026.
Replaces subsection (m) of section 202 of the Housing Act of 1959 to provide an authorization of appropriations.
Amends subsection (m) of section 811 by striking the period at the end and inserting (text as specified in the amendment).
Amends provisions of the United States Housing Act of 1937 by modifying section 3(a)(1)(A), section 8(o)(2)(A)(i), and section 9(e)(2)(A); inserts a new clause (vii) into section 9(e)(2)(A) requiring reporting of the amount of public housing rental income forgone as a result of lowering the percentage of monthly adjusted income for rent calculations. Other specified strikes-and-inserts replace text but the replacement text is not provided in this section.
Amends section 521(a)(3) of the Housing Act of 1949 (codified at 42 U.S.C. 1490a(a)(3)) by striking specified language in each place it occurs and inserting new language (replacement text not provided in this section).
Amends section 202(c)(3) of the Housing Act of 1959 (codified at 12 U.S.C. 1701q(c)(3)) by striking specified language and inserting new language (replacement text not provided in this section).
Amends section 811(d)(3) of the Cranston-Gonzalez National Affordable Housing Act (codified at 42 U.S.C. 8013(d)(3)) by striking specified language and inserting new language (replacement text not provided in this section).
Expand sections to see detailed analysis
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced May 1, 2025 by Yassamin Ansari · Last progress May 1, 2025
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House