Sponsors (5)
The bill repurposes federal HOME resources to convert vacant commercial and industrial buildings into affordable housing—potentially expanding housing supply and removing blight—but does so by diverting HOME funds, privileging projects in incentive-rich or deregulated jurisdictions, and creating access limits for small/rural communities and some private partners.
Low- and moderate-income households (targeting <=80% AMI) gain access to new affordable rental and ownership units by converting vacant commercial/industrial buildings, supported by pilot funds for remediation, demolition, and site preparation.
Community land trusts and community-ownership models can be funded, supporting long-term affordability and local control of converted properties.
Priority for projects in qualified opportunity zones and jurisdictions with streamlined conversion ordinances may attract private investment and speed up conversions, helping projects reach completion faster.
The pilot can redirect up to $100 million per year from the HOME program (when HOME funding exceeds $1.35B), reducing funds available for other HOME priorities and existing HOME recipients.
Limiting individual grants to $1 million–$10 million (within the pilot) may leave smaller and rural jurisdictions unable to afford modest conversions, excluding communities with smaller-scale needs.
Waiver authority for HUD regulations (outside core protections) combined with tying priority to opportunity zones or jurisdictions that streamline regulations risks reducing procedural safeguards, community input, and directing resources to areas loosening protections rather than the neediest neighborhoods.
Based on analysis of 2 sections of legislative text.
Creates a HUD pilot to convert vacant commercial/industrial buildings into attainable housing using up to $100M of HOME program excess funds in eligible years (FY2027–FY2031).
Introduced September 26, 2025 by Sam T. Liccardo · Last progress September 26, 2025
Creates a HUD pilot program to convert vacant or abandoned commercial and industrial buildings into attainable housing. The program would award competitive grants to eligible local jurisdictions, funded from excess HOME program appropriations in FY2027–FY2031 (up to $100 million per year when funding thresholds are met), and prioritizes projects in distressed areas, opportunity zones, and places that reduce conversion barriers. Grants may cover acquisition, demolition, remediation, construction/rehab, and community land trust activities; HOME program rules for rental/sale apply, limited statutory waivers are allowed, and HUD must report to Congress on outcomes within 180 days after the pilot ends.