H.R. 4660 — Unlocking Housing Supply Through Streamlined and Modernized Reviews Act

This section defines key terms for the Act, including “infill project” as a project within a municipality’s geographic limits that is adequately served by existing utilities and public services; located on previously disturbed land of not more than 5 acres substantially surrounded by residential or commercial development; repurposes a vacant or underutilized parcel or dilapidated or abandoned structure; and serves a residential or commercial purpose. It also defines “Secretary” as the Secretary of Housing and Urban Development.

This section directs the Secretary of Housing and Urban Development (HUD) to issue regulations, in accordance with the Administrative Procedure Act and NEPA, reclassifying specified housing-related activities by applying equivalent standards from designated sections of 24 CFR parts 50 and 58 (as in effect on January 1, 2025). (1) The following activities qualify as exempt: tenant-based rental assistance under Section 8(o) of the U.S. Housing Act of 1937 (42 U.S.C. 1437f(o)); supportive services (e.g., health care, permanent housing placement); operating costs (e.g., maintenance, utilities); economic development activities not involving construction or expansion; homebuyer assistance for existing or under-construction units; affordable housing predevelopment costs without physical impact; approval of supplemental assistance for previously approved projects; and emergency assistance for existing utilities. (2) The following activities qualify for categorical exclusions not subject to 24 CFR 58.5 or the federal laws in 24 CFR 50.4, if they do not materially alter environmental conditions or exceed original project scope: acquisition, repair, improvement, reconstruction, or rehabilitation of in-place public facilities/improvements (other than buildings) with no more than 20% change in size/capacity; rehabilitation of 1-to-4 unit residential buildings or related infrastructure (e.g., wells, septics, utility lines); and new construction, development, demolition, acquisition, or disposition involving up to 4 scattered-site dwelling units (maximum 4 units per site), or acquisition/leasing/disposition/equity loans on existing structures or vacant land retained for the same use. (3) The following activities qualify for categorical exclusions subject to 24 CFR 58.5 and the federal laws in 24 CFR 50.4, if they do not materially alter environmental conditions or exceed original project scope: acquisition of open space or residential property retained for the same use or converted to open space in high-risk areas; conversion of existing office buildings to residential use (subject to Secretary-determined maximum units and no more than 20% change in building size); new construction, development, demolition, acquisition, or disposition of 5 to 15 dwelling units (maximum 15 units per site) or 15 or more units on scattered sites (maximum 15 units per site, with sites separated by Secretary-determined distance); rehabilitation of 5-to-15 unit residential buildings (no density increase beyond 15 units, no land use change); infill residential projects; and buyouts of properties in floodways, floodplains, or disaster-impacted areas. (Thus, these reclassifications streamline NEPA compliance for HUD housing programs such as Section 8 tenant-based assistance, which aids low-income families in renting existing private-market housing.)

This section directs the Secretary to submit annual reports to the chairs and ranking minority members of the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services during the 5-year period beginning 2 years after enactment. The reports must summarize findings on reductions in review times and administrative costs—particularly in the affordable housing sector—resulting from this Act's provisions, along with any Secretary recommendations for congressional action to revise categorical exclusions or exemptions under title 24, Code of Federal Regulations.