Sec. 104. Unlocking Housing Supply Through Streamlined and Modernized Reviews
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The Secretary of Housing and Urban Development shall, in accordance with section 553 of title 5, United States Code, expand and reclassify housing-related activities under the necessary administrative regulations as follows: The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled exempt activities as set forth in section 58.34 of title 24, Code of Federal Regulations, as in effect on January 1, 2025:
Tenant-based rental assistance, as defined in section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ). Supportive services, including health care, housing services, permanent housing placement, day care, nutritional services, short-term payment for rent, mortgage, or utility costs, and assistance in gaining access to Federal Government and State and local government benefits and services. Operating costs, including maintenance, security, operation, utilities, furnishings, equipment, supplies, staff training, and recruitment and other incidental costs.
Economic development activities, including equipment purchases, inventory financing, interest subsidies, operating expenses, and similar costs not associated with construction or expansion of existing operations. Activities to assist homebuyers to purchase existing dwelling units or dwelling units under construction, including closing costs and down payment assistance, interest rate buydowns, and similar activities that result in the transfer of title. Affordable housing predevelopment costs related to obtaining site options, project financing, administrative costs and fees for loan commitment, zoning approvals, and other related activities that do not have a physical impact.
Approval of supplemental assistance, including insurance or guarantee, to a project previously approved by the Secretary. Emergency homeowner or renter assistance for HVAC, hot water heaters, and other necessary uses of existing utilities required under applicable law. The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled— categorical exclusions not subject to section 58.5 ; and categorical exclusions not subject to the Federal laws and authorities cited in sections 50.4 in section 58.35(b) and section 50.19, respectively of title 24, Code of Federal Regulations, as in effect on January 1, 2025, if such activities do not materially alter environmental conditions and do not materially exceed the original scope of the project:
Acquisition, repair, improvement, reconstruction, or rehabilitation of public facilities and improvements (other than buildings) if the facilities and improvements are in place and will be retained in the same use without change in size or capacity of more than 20-percent, including replacement of water or sewer lines, reconstruction of curbs and sidewalks, and repaving of streets. Rehabilitation of 1-to-4 unit residential buildings, and existing housing-related infrastructure, such as repairs or rehabilitation of existing wells, septics, or utility lines that connect to that housing.
New construction, development, demolition, acquisition, or disposition on up to 4 scattered site existing dwelling units where there is a maximum of 4 units on any 1 site. Acquisitions (including leasing) or disposition of, or equity loans on an existing structure, or acquisition (including leasing) of vacant land if the structure or land acquired, financed, or disposed of will be retained for the same use. The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled— categorical exclusions subject to section 58.5 ; and categorical exclusions subject to the Federal laws and authorities cited in sections 50.4 in section 58.35(a) and section 50.20, respectively, of title 24, Code of Federal Regulations, as in effect on January 1, 2025, if such activities do not materially alter environmental conditions and do not materially exceed the original scope of the project:
Acquisitions of open space or residential property, where such property will be retained for the same use or will be converted to open space to help residents relocate out of an area designated as a high-risk area by the Secretary. Conversion of existing office buildings into residential development, subject to— a maximum number of units to be determined by the Secretary; and a limitation on the change in building size to not more than 20-percent. New construction, development, demolition, acquisition, or disposition on 5 to 15 dwelling units where there is a maximum of 15 units on any 1 site.
The units can be 15 1-unit buildings or 1 15-unit building, or any combination in between. New construction, development, demolition, acquisition, or disposition on 15 or more housing units developed on scattered sites when there are not more than 15 housing units on any 1 site, and the sites are more than a set number of feet apart as determined by the Secretary. Rehabilitation of buildings and improvements in the case of a building for residential use with 5 to 15 units, if the density is not increased beyond 15 units and the land use is not changed.
Infill projects consisting of new construction, rehabilitation, or development of residential housing units. Buyouts, defined as the voluntary acquisition of properties located in— a floodway; a floodplain; or an other area, clearly delineated by the grantee, that has been impacted by a predictable environmental threat to the safety and wellbeing of program beneficiaries caused or exacerbated by a federally declared disaster. The Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives annual reports during the 5-year period beginning on the date that is 2 years after the date of enactment of this Act that provide a summary of findings of reductions in review times and administrative cost reduction, with a particular focus on the affordable housing sector, as a result of the actions set forth in this subsection, and any recommendations of the Secretary for future congressional action with respect to revising categorical exclusions or exemptions under title 24, Code of Federal Regulations.
The Department of Housing and Urban Development Act ( 42 U.S.C. 3531 et seq. ) is amended by inserting after section 12 ( 42 U.S.C. 3537a ) the following: Except as provided in subsection (b), the Secretary may, for purposes of environmental review, decision-making, and action pursuant to the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ), and other provisions of law that further the purposes of such Act, designate the treatment of assistance administered by the Secretary as funds for a special project for purposes of section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994 ( 42 U.S.C. 3547 ).
The designation described in subsection
(a)shall not apply to assistance for which a procedure for carrying out the responsibilities of the Secretary under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ), and other provisions of law that further the purposes of such Act, is otherwise specified in law. . Section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994 ( 42 U.S.C. 3547 ) is amended— by striking State or unit of general local government each place it appears and inserting State, Indian Tribe, or unit of general local government ; in paragraph (1)(C), in the heading, by striking and inserting state or unit of general local government ; and state, Indian Tribe, or unit of general local government by adding at the end the following: For purposes of this subsection, the term Indian Tribe means a federally recognized Tribe, as defined in section 4(13)(B) of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4103(13)(B) ). . Any activity generated under subsections
(a)or
(b)would be subject to an authorization of appropriations. In this section, the term infill project means a project that— occurs within the geographic limits of a municipality; is adequately served by existing utilities and public services as required under applicable law; is located on a site of previously disturbed land of not more than 5 acres and substantially surrounded by residential or commercial development; will repurpose a vacant or underutilized parcel of land, or a dilapidated or abandoned structure; and will serve a residential or commercial purpose.
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Sec. 104
Unlocking Housing Supply Through Streamlined and Modernized Reviews
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