Sponsors (2)
The bill aims to convert vacant commercial buildings into affordable housing quickly and in high-need areas—benefiting low- and moderate-income households and distressed communities—but does so by reallocating HOME funds, relying on waivers that reduce some protections, and structuring grants in ways that may favor larger jurisdictions and leave long-term funding gaps.
Low- and moderate-income households (renters and prospective homeowners) will gain new affordable rental and homeownership options through HOME-compliant units targeted at ≤80% or ≤60% AMI.
Local governments and eligible entities can compete for grants (up to $10 million each) to convert vacant commercial or industrial buildings into housing, increasing local housing supply and reusing underutilized properties.
Investments are prioritized for economically distressed areas, Opportunity Zones, and consolidated-plan needs, directing resources to high-need and historically underinvested communities.
HOME program funding could be redirected (up to $100 million per year) to these grants, reducing HOME’s formula flexibility and predictability for other affordable housing activities and beneficiaries.
Converting commercial or industrial properties often requires expensive remediation and rehabilitation, and the bill does not clearly secure long-term operating or maintenance funding—raising risk of future deterioration or higher rents for converted units.
Waiver authority, while speeding projects, may reduce procedural protections, oversight, or local accountability (in areas like administration, zoning, or procurement), undermining transparency and safeguards.
Based on analysis of 2 sections of legislative text.
Creates a HUD pilot (FY2027–2031) to fund conversion of vacant commercial/industrial buildings into attainable housing using up to $100M/year from excess HOME funds.
Official title: Establish a pilot program to convert blighted buildings into housing.
Introduced July 24, 2025 by James E. Banks · Last progress July 24, 2025
Creates a HUD pilot program (2027–2031) to convert vacant and abandoned commercial or industrial buildings into attainable housing by competitively awarding grants to participating jurisdictions. HUD may redirect up to $100 million per year from amounts in excess of $1.35 billion available for the HOME Investment Partnerships Program, set grant sizes, allow limited statutory/regulatory waivers, and must report to Congress on housing, tax-base, and blight impacts after the pilot ends.