Sponsors (5)
The bill can expand affordable housing supply and remediate blighted properties by converting vacant commercial/industrial buildings and leveraging private investment, but it reallocates HOME funds and includes waiver/prioritization rules that could reduce protections and favor incentive-rich areas over the neediest communities.
Local governments and residents in distressed commercial/industrial corridors gain new housing supply as vacant buildings can be converted into affordable housing units, increasing overall housing availability.
Households at or below 80% of area median income (and similarly defined eligible households) gain expanded access to rental and homeownership options designated as 'attainable housing', improving affordability for low- and moderate-income families.
Projects can receive pilot funding for remediation, demolition, and site preparation, helping reduce blight and health hazards in affected neighborhoods.
Participating jurisdictions and other HOME program recipients may see reduced funds because the pilot can redirect up to $100 million per year of HOME funds (when HOME appropriations exceed $1.35 billion), shrinking the pool for other priorities.
Waiver authority for HUD regulations (other than core protections) and incentives for streamlined ordinances risk reducing procedural safeguards and community input during conversions, potentially limiting resident participation and oversight.
Prioritizing opportunity zones and jurisdictions that roll back regulations could steer resources toward areas with tax incentives or fewer protections rather than the neediest neighborhoods, worsening geographic equity.
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/year of excess HOME funds (FY2027–FY2031) via competitive grants.
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 affordable, attainable housing. For fiscal years 2027–2031, HUD may tap up to $100 million per year from any HOME program funds that exceed $1.35 billion to make competitive grants of $1–10 million to participating jurisdictions, with priorities for economically distressed areas, opportunity zones, and places that reduce regulatory barriers to conversion. Grants may cover acquisition, demolition, remediation, construction/rehab, site prep, and community land trusts; HOME program rules apply and HUD must report to Congress after the pilot ends on outcomes like blight removal and access for elderly, disabled, and veteran households.