Sponsors (2)
This bill seeks to expand and speed affordable housing production, strengthen disaster recovery and consumer protections, and improve access to diverse housing finance, but it does so at the cost of higher federal spending, increased compliance burdens, privacy and environmental risks, and potential reallocation of resources away from some high-need or locally preferred communities.
Renters, low- and moderate-income households, and communities nationwide gain increased housing production and preservation through new competitive grants, incentives for pro-housing zoning, pilot conversions of blighted buildings, pre-reviewed designs, and higher financing caps that aim to expand supply and affordability.
Disaster-impacted households and state/local governments get stronger long-term recovery and resilience resources via a dedicated Long-Term Disaster Recovery Fund, an Office of Disaster Management and Resiliency, prioritized low/moderate-income allocations, and funding for mitigation and early-response grants.
Delinquent homeowners and borrowers receive earlier and better-structured foreclosure-mitigation counseling (including potential payment of counseling costs from FHA funds when conditions apply) and HUD oversight intended to improve counseling quality and outcomes.
Taxpayers face increased federal spending and potentially open-ended fiscal exposure from new programs, disaster funds, expanded grants, and higher program eligibility that will likely raise federal outlays.
Streamlining environmental reviews and expanding categorical exclusions risks weakening environmental safeguards and increasing environmental-justice harms for low-income and marginalized communities where projects move forward with less local scrutiny.
Reallocating or prioritizing funds (e.g., CDBG penalties for low-growth jurisdictions, extra weight to Qualified Opportunity Zones, and competitive grant priorities) could divert resources away from chronically high-need or capacity-limited communities and exacerbate geographic inequities.
Based on analysis of 29 sections of legislative text.
Makes broad changes across federal housing policy to shift funding, oversight, and program design toward increasing housing production, strengthening housing counseling and foreclosure mitigation, modernizing manufactured housing rules, and improving long-term disaster recovery. It creates a new HUD disaster office and a Long-Term Disaster Recovery Fund, establishes a dedicated CDBG Disaster Recovery program, and authorizes new rural development grants. Also changes formula and program rules: reallocates Community Development Block Grant (CDBG) funds based on measured housing growth (including bonuses and penalties), directs FHA and HUD rulemaking on multifamily loan limits and loan reporting, tasks the CFPB to study small-dollar mortgage compensation and rule options, requires state certifications for treatment of manufactured homes without a permanent chassis, and increases interagency data-sharing and oversight requirements to speed recovery and reduce duplication after disasters.
Reforms federal housing programs: tightens counseling and FHA rules, reallocates CDBG by housing growth, creates a long-term disaster recovery fund/program, updates manufactured housing rules, and funds rural grants.
Introduced December 1, 2025 by Lisa C. McClain · Last progress December 1, 2025