Innovation Fund Act

Summary

Creates a HUD competitive grant program to reward local governments, metropolitan cities, urban counties, and Indian tribes that can demonstrate recent, objective growth in housing supply. Grants must be used to expand or supplement "attainable housing"—defined by two alternative mixes of area median income (AMI) targets—and may fund certain community development and transportation-related activities. HUD must publish its eligibility methodology in the Federal Register at least 90 days before a notice of funding opportunity, post eligible entities online, and set up the program within one year of enactment. Applicants must submit an application describing intended uses, provide three years of housing supply data, and attest that funds will be used only for eligible purposes; grant funds can also serve as matching funds for EPA State Revolving Fund programs when the grantee is the eligible entity, unless HUD decides otherwise.

• Establishes a HUD competitive grant program to reward local governments and tribes that demonstrate objective housing supply growth.
• Defines "attainable housing" with two alternative AMI-based income mixes to guide eligible projects.
• Requires HUD to publish eligibility methodology in the Federal Register at least 90 days before a funding notice and to post eligible entities online.
• Eligible uses include existing community development activities and certain regional transportation assistance activities.
• Applicants must provide three years of data showing increased housing supply and explain how proposed uses address local needs.
• Grants may serve as matching funds for EPA State Revolving Fund programs when the grantee is the eligible entity, unless HUD objects.
• HUD must set up the program within one year of enactment; the law does not itself appropriate funding or detail award amounts.
• Eligibility depends both on legal status (cities/counties/tribes) and on demonstrated objective housing growth per HUD’s methodology.