Sponsors (2)
The bill uses federal funding and local tax incentives to spur production of affordable and workforce housing, increasing supply and encouraging redevelopment while shifting costs to taxpayers and reducing local revenues for public services.
Renters and low- and middle-income households could gain increased access to affordable and mixed-income housing because HUD will prioritize projects that create affordable/workforce units.
Developers receive predictable financial relief (up to $150,000/year for up to 5 years), lowering upfront costs and improving project feasibility to spur more housing production.
Neighborhoods could see more redevelopment and efficient land use—through infill, adaptive reuse, transit-oriented development, and senior-accessible units—helping revitalize areas and support transit ridership.
Local governments must cut property taxes by at least 50% for participating projects, reducing revenue available for schools, public safety, and other local services.
Taxpayers fund $300 million annually to support the program, which could increase federal spending or divert funds from other programs or priorities.
The program may favor larger developers or projects able to secure local tax concessions (typically 5+ unit projects), disadvantaging small-scale builders and communities that can't offer tax breaks.
Based on analysis of 2 sections of legislative text.
Establishes a HUD grant program to pay developers up to 50% of local taxes and impact fees (max $150,000/yr) for up to five years to support multi-unit housing projects.
Introduced January 27, 2026 by Janelle S. Bynum · Last progress January 27, 2026
Creates a HUD grant program that pays developers a portion of the state and local property taxes and local impact fees tied to building housing projects. Grants cover up to 50% of those taxes and fees (capped at $150,000 per year) for up to five years, provided the developer has required local approvals and a commitment from state/local governments to cut property taxes on the project by at least 50%. The program is funded at $300 million per year for FY2027–FY2031 and must be set up within 90 days of enactment.