UNLOCK Act

This bill would let cities, counties, states, U.S. territories, and tribes use Community Development Block Grant (CDBG) funds to build new homes for low- and moderate-income people. Today, CDBG is widely used for housing and neighborhood projects, but rules have limited using it to construct brand-new housing. The bill adds new housing construction as an eligible use, including projects done with help from neighborhood-based nonprofits or other nonprofit groups.

In plain terms, it opens up a major, flexible funding source so local communities can build more affordable homes where they’re needed most.

• Who is affected: Local and tribal governments, and low- and moderate-income residents who need housing.
• What changes: CDBG funds could be used to construct new residential housing, including with nonprofit partners.
• How it works: The law would add “new housing construction” to the list of allowed CDBG activities for eligible grantees under section 106.