Summary

Creates a HUD pilot program to convert vacant commercial, industrial, and hotel properties into attainable housing by awarding competitive grants to eligible jurisdictions. For FY2027–FY2031 the Secretary may use up to $100 million of HOME program funding that exceeds $1,350,000,000 in a fiscal year to fund grants, with grant sizes and prioritization rules, eligible uses, and reporting requirements.

Key Points

• Establishes a HUD pilot to convert vacant commercial, industrial, and hotel properties into attainable housing.
• Funding is available FY2027–FY2031 when HOME appropriations exceed $1.35 billion; up to $100 million of the excess may be used for the pilot in a year.
• Individual grants range from $1 million to $10 million when $100 million is available; HUD must maximize grant count in lower-funding years.
• Grants are additive to HOME formula allocations and available to jurisdictions already eligible under HOME program rules.
• HUD must prioritize economically distressed communities, qualified opportunity zones, projects in consolidated plans, and jurisdictions that have reduced regulatory barriers to conversions.
• Eligible uses include acquisition, demolition, remediation, site prep, construction/rehab, and community land trust activities.
• Converted units remain subject to HOME rental, sale, and resale rules.
• HUD may waive certain HUD-administered rules for good cause but cannot waive fair housing, nondiscrimination, labor standards, or environmental requirements.
• HUD must study and report to Congress within 180 days after the pilot ends on tax-base impacts, affordable housing outcomes (esp. for elderly, disabled, veterans), homeownership, and blight removal.

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