Sponsors (5)
Creates a HUD pilot to award competitive grants (up to $100M/year from excess HOME funds) to convert vacant commercial/industrial buildings into attainable housing (FY2027–FY2031).
The bill aims to turn vacant commercial and industrial buildings into attainable housing and remove blight—boosting affordable housing supply and community ownership—but does so by redirecting HOME funds, granting regulatory waivers, and prioritizing incentive-bearing areas, which may reduce safeguards, disadvantage the neediest neighborhoods, and deter some private partners.
Low- and moderate-income households (<=80% AMI) and communities gain more affordable rental and homeownership units as local governments can convert vacant commercial/industrial buildings into 'attainable housing', increasing housing supply in distressed areas.
Local governments and neighborhoods benefit from pilot funding for remediation, demolition, and site preparation that reduces blight and neighborhood health hazards, improving living conditions in targeted areas.
Community land trusts can receive funding, supporting long-term affordability and community ownership models that help preserve below-market housing over time.
Participating jurisdictions and low-income households face reduced HOME program resources because up to $100 million per year can be redirected to this pilot when HOME appropriations exceed $1.35 billion, cutting funds for other HOME priorities and recipients.
The bill gives HUD waiver authority over certain regulations (while preserving core protections), which could reduce procedural safeguards and community input for conversions, potentially limiting residents' rights and oversight.
Tying priority to qualified opportunity zones and regulatory rollbacks may steer resources toward areas with tax incentives or relaxed protections instead of the neediest neighborhoods, disadvantaging the poorest communities.
Based on analysis of 2 sections of legislative text.
Official title: To establish a pilot program to convert blighted buildings into housing.
Introduced September 26, 2025 by Sam T. Liccardo · Last progress September 26, 2025
Creates a HUD pilot program that funds conversion of vacant commercial or industrial buildings into attainable housing. For FY2027–FY2031 HUD may use up to $100 million of any HOME program funding that exceeds $1.35 billion in a year to award competitive grants (typically $1M–$10M) to participating jurisdictions and eligible entities, prioritizing distressed areas, opportunity zones, consolidated-plan needs, and places that have reduced conversion barriers. Funds may cover acquisition, demolition, remediation, construction/rehab, and community land trusts; HOME program rules generally apply and HUD may waive certain statutory/regulatory requirements (but not fair housing, labor, or environmental protections). HUD must report to Congress within 180 days after the pilot ends on outcomes including tax base effects, access to affordable housing for elderly/disabled/veterans, homeownership, and blight removal.