Sec. 202. Community Development Fund Amendments
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Section 104 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5304 ) is amended by adding at the end the following: Beginning 1 year after the date of the enactment of this subsection, prior to receipt in any fiscal year of a grant from the Secretary under subsection (b), (d)(1), or (d)(2)(B) of section 106, each recipient shall have prepared and submitted, not less frequently than once during the preceding 5-year period, a description of— whether the jurisdiction served by the recipient has adopted any of the types of land use policies described in paragraph
(2)during the preceding 5-year period; the plans the jurisdiction served by the recipient has to adopt and implement any of the types of land use policies described in paragraph (2); and any ways in which the jurisdiction served by the recipient expects the planned adoption of any of the types of land use policies described in paragraph
(2)would benefit the jurisdiction. The types of policies to be considered for the purposes of the submission of information required under paragraph
(1)include the following: Expanding by-right multifamily zoned areas. Allowing duplexes, triplexes, or fourplexes in areas zoned primarily for single-family residential homes. Allowing manufactured homes in areas zoned primarily for single-family residential homes. Allowing multifamily development in retail, office, and light manufacturing zones. Allowing single-room occupancy development wherever multifamily housing is allowed. Reducing minimum lot size. Ensuring historic preservation requirements and other land use policies or requirements are coordinated to encourage creation of housing in historic buildings and historic districts. Increasing the allowable floor area ratio by allowing a higher ratio of total floor area in a building in comparison to its lot size. Creating transit-oriented development zones. Streamlining or shortening permitting processes and timelines, including through one-stop and parallel-process permitting. Eliminating or reducing off-street parking requirements. Ensuring impact and utility investment fees accurately reflect required infrastructure needs and related impacts on housing affordability are otherwise mitigated. Allowing off-site construction, including prefabricated construction. Reducing or eliminating minimum unit square footage requirements. Allowing the conversion of office units to apartments. Allowing the subdivision of single-family homes into duplexes. Allowing accessory dwelling units, including detached accessory dwelling units, on all lots with single-family homes. Establishing density bonuses. Eliminating or relaxing residential property height limitations. Using property tax abatements to enable higher density and mixed-income communities. Donating vacant land for affordable housing development. Enacting other relevant high-density, single-family, and multifamily zoning policies that the recipient chooses to report. A submission under this subsection shall not be binding with respect to the use or distribution of amounts received under section 106. The acceptance or nonacceptance of any plan submitted under this subsection in which the information required under this subsection is provided may not be considered an endorsement or approval of the plan, policies, or methodologies, or lack thereof. Information provided by a recipient to the Secretary under this subsection may not be used as the basis for any enforcement action. . Section 105(a) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5305(a) ) is amended— in paragraph (25)(D), by striking and at the end; in paragraph (26), by striking the period at the end and inserting ; and ; and by adding at the end the following new paragraph: the new construction of affordable housing, within the meaning given such term under section 215 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12745 ), and which shall not exceed 20-percent of the amounts allocated to the recipient. . Section 105(c)(3) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5305(c)(3) ) is amended by striking or rehabilitation and inserting , rehabilitation, or new construction . The amendments made by this subsection shall apply with respect only to amounts appropriated after the date of the enactment of this Act. Section 104(b) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5304(b) ) is amended— in paragraph (5), by striking and at the end; in paragraph (6), by striking the period at the end and inserting ; and ; and by adding at the end the following: the grantee maintains, on a publicly accessible website, a searchable database that identifies all parcels of undeveloped land owned by the grantee. . The amendments made by this subsection shall take effect on October 1, 2026.
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