Housing Innovation Act

House Votes

This bill creates a new Office of Housing Innovation at the Department of Housing and Urban Development to help communities try proven, practical ways to add more homes people can afford and cut long commutes. The office will share best practices, give technical help to local governments, and work with Transportation, EPA, and Energy so housing, transit, health, and energy goals line up.

It sets up three grant programs:

• Planning grants for cities in urban areas to update local plans and rules (like zoning and parking) so they can increase housing supply, improve affordability, add more types of homes, and improve commute times, especially near transit and job centers. Grants can be used for public outreach, community meetings, and planning work, up to $2 million each.
• Research and pilot grants for partnerships of local governments, colleges, and nonprofits to test ideas like better “last mile” connections to transit, student housing, home-sharing for seniors, safer streets, modular building to lower costs, and other local solutions, up to $500,000 each. Prior repeat grantees must at least match with nonfederal funds.
• Education and outreach grants for partnerships that include a college to support community education on housing and planning, up to $200,000 each. Prior repeat grantees must at least match with nonfederal funds.

Funding is $100 million per year from fiscal years 2026 through 2032, with 90% for planning, 5% for research/pilots, and 5% for education/outreach. The new office itself is funded at $50 million per year starting in fiscal year 2026. The Government Accountability Office must review the grant programs within three years of enactment.

Key points

• Who is affected: Urban local governments; universities and nonprofits working with them; residents facing high housing costs and long commutes.
• What changes: A new HUD office focused on housing solutions; grants for local planning, research/pilots, and community education; technical help and cross-agency coordination.
• When: Funding begins in fiscal year 2026; program effectiveness review due within three years of enactment.