Sponsor
Michael Lawler
Representative · R-NY
Representative · R-NY
Official title: To improve the safety of, affordability of, and access to housing.
Introduced August 1, 2025 by Michael Lawler · Last progress August 1, 2025
This bill aims to increase affordable housing supply, tenant safety, counseling, and transparency, but does so at the cost of sizable new tax preferences and spending, added administrative burdens and compliance costs, and risks to equity and certain environmental protections.
Low‑ and middle‑income families, renters, and voucher holders gain greater access to affordable homes through new tax credits and state allocations (Neighborhood Homes Credit, GNND expansion), transfer/donation of unused federal property for housing, expanded PHA flexibility, and incentives for owner‑occupied affordable housing.
Renters and residents in federally assisted housing (especially children and other vulnerable groups) receive better health and safety protections and information via required mold education/outreach, GIS mapping, a NIEHS health study, and prioritization of lead hazards/lead service lines in HUD inspections.
Homebuyers, borrowers facing default, renters at risk of homelessness, and rural communities gain expanded counseling and foreclosure‑mitigation resources (mandatory prepurchase/mitigation counseling, certified counselors, 40% of funds for rental/pre‑foreclosure counseling, geographic diversity requirements), improving informed borrowing and access to assistance.
Taxpayers broadly face higher federal costs and reduced federal revenue because of expanded tax preferences (larger home sale exclusions, Opportunity Zone treatment, energy subsidy exclusions) and new tax credits/allocations, which could increase deficits or crowd out other priorities.
State and local governments, PHAs, HUD, and nonprofit providers face substantial new administrative, reporting, and compliance burdens from standardized land‑use plans, frequent GAO/HUD reporting, complex tax credit rules, expanded PHA data/metrics, counselor certification/exam requirements, and new inspection/tracking duties.
Programs and direct service funding could be reduced or misallocated because up to 10% of subtitle funds may be used for performance bonuses, CDBG funds can be withheld for local policies, and grant/certification rules risk penalizing organizations serving higher‑risk clients, reducing assistance where need is greatest.
Based on analysis of 14 sections of legislative text.
Revises HUD program rules and oversight, expands MTW flexibility, creates homelessness incentives, changes Opportunity Zone and home‑sale tax rules, sets mortgage/counseling standards, and mandates land‑use plans.
This bill makes wide-ranging changes to federal housing policy, taxes affecting housing investment, mortgage and counseling rules, and HUD program oversight to expand housing supply, target middle‑income affordability, and strengthen accountability. It directs studies and reports, modifies HUD rental and assistance rules, creates incentives for improved homeless outcomes, revises Moving to Work authorities, and changes several tax provisions tied to housing and energy programs. The measure also limits certain DOE energy‑efficiency rulemaking for transformers, changes Opportunity Zone and principal‑residence tax exclusions, creates standards and regulatory timelines for small‑dollar mortgages and manufactured housing, increases oversight and annual congressional testimony by HUD and mortgage program officials, and adds counseling and certification requirements for organizations that receive federal housing counseling funds.