Sec. 114. Grants for converting State and local government buildings into affordable housing
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In this section: The term eligible building means a building that the Secretary, in coordination with the Administrator of General Services, determines is unused or underutilized and suitable for residential development. The term qualified residential rental project means any project for residential rental property that at all times for the period that is not less than 30 years, or the minimum period that a State or unit of local government decides that is not less than 30 years, meets the following requirements:
The project requires that— 20 percent or more of the residential units in such project are occupied by a household with an income that does not exceed 50 percent of the median income for the area; 40 percent or more of the residential units in such project are occupied by a household with an income that does not exceed 60 percent of the median income for the area; or the average income of a household occupying 40 percent or more of the residential units in such project does not exceed 60 percent of the median income for the area, although individual residential units within that 40 percent of units may be occupied by a household with an income that does not exceed 80 percent of the median income for the area.
The housing costs, including water and sewer, electricity, heating, cooling, trash, and recycling, and other specific circumstances of the property that may also be considered in affordability calculations under local regulations, with respect to each residential unit described in subparagraph
(A)does not exceed 30 percent of the income limit described in subparagraph
(A)that applies to the household occupying such unit. The term State means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe. Not later than 1 year after the date of the enactment of this section, the Secretary shall establish a grant program, to be known as the Office to Residential Affordable Housing Conversion Program (in this section referred to as the Conversion Program ), to facilitate the conversion of buildings owned by a State or unit of local government into qualified residential rental projects. In administering the Conversion Program, the Secretary shall make grants available to States and units of local government on a competitive basis in accordance with this section. To be eligible for a grant under the Conversion Program, an entity described in subsection
(c)shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary determines appropriate. Each entity that is awarded an amount under the Conversion Program may use such amount for the acquisition of an eligible building and any costs associated with converting such building into qualified residential rental projects. Each entity that is awarded an amount under the Conversion Program is encouraged to consult with a local project sponsor receiving amounts under the continuum of care program under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11381 et seq. ). All laborers and mechanics employed by contractors or subcontractors in the performance of construction, alteration, or repair work on a project assisted in whole or in part by funding made available under this section shall be paid wages at rates not less than those prevailing on similar projects in the locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly referred to as the Davis-Bacon Act ). With respect to the labor standards specified in this paragraph, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. The following requirements apply with respect to the conversion of any housing unit using amounts provided to an entity described in subsection
(a)(in this paragraph referred to as an eligible recipient ) under the Conversion Program: Eligible recipients shall ensure that, with respect to the construction of any housing unit, not less than 15 percent of the total labor hours of the construction, alteration, or rehabilitation work (including such work performed by any contractor or subcontractor) with respect to such unit shall, subject to subparagraph (B), be performed by qualified apprentices. The requirement under subparagraph
(A)shall be subject to any applicable requirements for apprentice-to-journeyworker ratios of the Secretary of Labor or the applicable State apprenticeship agency. Each eligible recipient, contractor, or subcontractor who employs 4 or more individuals to perform construction, alteration, or repair work with respect to the construction of a housing unit shall employ 1 or more qualified apprentices to perform such work. An eligible recipient shall not be treated as failing to satisfy the requirements of this paragraph if such eligible recipient— satisfies the requirements described in clause (ii); or with respect to an eligible recipient who is not described in subclause
(I)and does not satisfy the requirements of subparagraph
(A)with respect to such housing unit, such eligible recipient pays a penalty to the Secretary of Labor in an amount equal to the product of— $50; multiplied by the total labor hours for which the requirement subparagraph
(A)was not satisfied with respect to the construction, alteration, or repair work on such housing unit. For purposes of clause (i), an eligible recipient shall be deemed to have satisfied the requirements under this paragraph with respect to a housing unit if such eligible recipient has requested qualified apprentices from a registered apprenticeship program, and— such request has been denied, as long as such denial is not the result of a refusal by the eligible recipient or any contractors or subcontractors engaged in the performance of construction, alteration, or repair work with respect to such housing unit to comply with the established standards and requirements of the registered apprenticeship program; or the registered apprenticeship program fails to respond to such request within 5 business days after the date on which such registered apprenticeship program received such request. In this paragraph: The term labor hours — means the total number of hours devoted to the performance of construction, alteration, or repair work by any individual employed by the eligible recipient or by any contractor or subcontractor; and excludes any hours worked by— foremen; superintendents; owners; or persons employed in a bona fide executive, administrative, or professional capacity (within the meaning of those terms in part 541 of title 29, Code of Federal Regulations). The term qualified apprentice means an individual who— is employed by the eligible recipient or by any contractor or subcontractor; and is participating in a registered apprenticeship program. The term registered apprenticeship program means an apprenticeship program registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq. ). There is authorized to be appropriated to carry out the Conversion Program $750,000,000 for each of fiscal years 2026 through 2030.
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- 64 Stat. 1267
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Sec. 114
Grants for converting State and local government buildings into affordable housing
Stat.64 Stat. 1267
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