H.R. 6337 — ROAD to Housing Act of 2025

This section amends HUD's housing counseling program by (1) revising in subsection (a)(4)(C) the criteria for grant recipients to require geographic diversity including organizations serving urban or rural areas (from requirements for adequate distribution among states with high foreclosure rates); (2) adding in subsection (e) performance reviews of participating agencies and counselors, including comparisons of individual counselor performance to default rates on covered mortgage loans—defined as FHA-insured under title II of the National Housing Act or guaranteed under sections 184 or 184A of the Housing and Community Development Act of 1992—and allowing remedial education, retesting, or permanent certification suspension after two failures; (3) adding in subsection (i) authority to deny renewal of assistance to noncompliant organizations based on such performance reviews, with 60 days' notice and an opportunity for an informal conference; and (4) adding subsection (j) to require lenders to offer housing counseling to borrowers 30 or more days delinquent on covered mortgage loans—defined to include FHA title II-insured loans, sections 184/184A guarantees, VA loans, or USDA loans—with the fair market cost of counseling for FHA-insured delinquent loans paid by the Mutual Mortgage Insurance Fund if statutory requirements are met. (As background, the program provides technical assistance, advice, and counseling to low- and moderate-income families on housing construction, rehabilitation, maintenance, financial management, and foreclosure prevention.)

This section makes permanent the Rental Assistance Demonstration (RAD) program—originally authorized for public housing agencies to convert public housing units to project-based Section 8 rental assistance contracts to facilitate rehabilitation and preservation using private financing—by extending its availability for FY2012 and each fiscal year thereafter (from until September 30, 2029); strikes the fourth and twenty-second provisos; requires adoption of a mandatory tenant lease and management plan addendum for properties with converted assistance under RAD (if not covered by another program); revises multiple provisos to replace references to the “Second Component” with “First Component”; and adds requirements for the Secretary of Housing and Urban Development to (1) annually assess and publish findings on the impacts of First Component conversions, including effects on public housing preservation, private investment leveraging, resident retention and return rates, and tenant rights; (2) impose remedial actions, civil money penalties, or other sanctions for material violations; and (3) preserve all existing property owner and tenant rights and protections under current law and regulations following RAD conversions.

This section authorizes the Secretary of Housing and Urban Development, when awarding competitive grants relating to the construction, modification, rehabilitation, or preservation of housing, to give additional weight to applicants located in, or that primarily serve, a qualified opportunity zone.

This section establishes the Housing Supply Frameworks Act, which includes congressional findings on the U.S. housing supply shortage caused in part by state and local regulatory barriers (e.g., zoning and land use regulations); defines terms including "affordable housing" (i.e., housing costing no more than 30% of household monthly income), "local zoning framework," and "State zoning framework"; and directs the Assistant Secretary for Policy Development and Research, not later than three years after enactment, to publish guidelines and best practices to support housing production for all income levels via reforms to such frameworks. In developing the guidelines, during the two-year period beginning on enactment, the Assistant Secretary must publish drafts in the Federal Register for public comment and consult a task force including planners, developers, community members, public housing and transit authorities, local and state officials, academics, and home builders. The guidelines must outline models for state enabling legislation or procedures and recommend reforms such as (1) reducing or eliminating parking minimums; (2) increasing maximum floor area ratios, building heights, and by-right multifamily uses (e.g., duplexes, triplexes, quadplexes) while reducing minimum lot sizes and setbacks; (3) eliminating accessory dwelling unit restrictions; (4) streamlining review processes (e.g., ministerial review); (5) reducing barriers to manufactured, modular, and transit-oriented housing; (6) standardizing or lowering impact fees; (7) reforming protest petitions and public engagement; and (8) preserving affordability and limiting disruption to low-income communities.

This section defines terms for the Whole-Home Repairs Act, including: (1) affordable unit (monthly rent not exceeding 30% of gross income for households at or below 80% of area median income); (2) assisted unit (unit repaired or rehabilitated under the program); (3) eligible homeowner (household income at or below 80% of area median income or qualifying for specified programs such as Medicaid, CHIP, or Supplemental Security Income, who occupies the home as principal residence or demonstrates ownership interest); (4) eligible landlord (individual owning fewer than 10 eligible rental properties with a majority affordable units and no more than 50 total units, who agrees to specified provisions); (5) eligible rental property (property leased as primary residence including affordable units); (6) forgivable loan (loan to eligible landlord secured by lien, forgivable after 3 years if compliant); (7) implementing organization (local government or state administering the program directly or via subrecipients such as qualified nonprofits, excluding redundant entities); (8) qualified nonprofit (nonprofit with experience in specified HUD or rural housing programs, EPA certifications for lead or energy work, or community development financial institution status); and (9) specified program (e.g., Medicaid under title XIX of the Social Security Act, CHIP under title XXI, or Supplemental Security Income).

This section increases to 20% (from 15%) the limit on the aggregate amount of investment securities that a national bank or state member bank may hold from any single obligor. (Thus, these institutions may invest up to 20% of capital stock plus surplus in securities of one issuer, such as a state or local government, subject to Comptroller of the Currency restrictions for national banks.)

This section establishes adjustments to Community Development Block Grant (CDBG) formula allocations under section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306) for metropolitan cities and urban counties based on their housing growth improvement rates (i.e., current annual growth rate for a fiscal year divided by prior annual growth rate, both measured as average annual percentage increases in housing units over specified five-year periods using Census data). (1) It defines eligible recipients as CDBG metropolitan cities or urban counties excluding those with median Small Area Fair Market Rent at or below the 60th percentile of peers and U.S. median home value below the national median, annual natural rental vacancy above the national average, a major disaster or emergency declaration under the Stafford Act (42 U.S.C. 5170, 5191) in the prior year, or lacking zoning and permitting authority; extremely high-growth recipients are eligible recipients with current annual growth rates of 4% or higher. (2) It directs the Secretary of Housing and Urban Development (HUD) to decrease allocations by 10% for eligible recipients below the median housing growth improvement rate (excluding high-growth outliers) and to provide bonuses to those at or above the median or that are extremely high-growth recipients, with total bonuses equal to aggregate decreases pro-rated by jurisdiction housing units. (3) It requires HUD to calculate housing units at the block level using Census Master Address File data (with cooperation from the Census Bureau and Postal Service) and authorizes adjustments to calculation periods.

This section authorizes the Secretary of Housing and Urban Development (HUD) to designate assistance administered by the Secretary as funds for a special project under section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547) for purposes of National Environmental Policy Act (NEPA) environmental review and related laws, except for assistance with procedures otherwise specified in law. The section further amends section 305(c) to permit Indian tribes (defined as federally recognized tribes under section 4(13)(B) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(13)(B)))—in addition to states and units of general local government—to assume HUD's NEPA responsibilities for certain programs. (Thus, this expands streamlined environmental review options (i.e., where the recipient entity completes the review subject to HUD oversight) to tribal recipients of qualifying HUD assistance.)

This section defines an "infill project" as one within municipal limits on previously disturbed land of not more than 5 acres that is substantially surrounded by residential or commercial development, adequately served by utilities and services, and repurposes a vacant, underutilized, dilapidated, or abandoned parcel or structure for residential or commercial use. It further directs the Secretary of Housing and Urban Development, pursuant to NEPA §103 (42 U.S.C. 4333) and APA notice-and-comment procedures, to issue regulations expanding and reclassifying housing-related activities into three tiers of NEPA streamlining modeled on existing HUD environmental regulations (24 C.F.R. part 58, as in effect on January 1, 2025): (1) Exempt activities (equivalent to 24 C.F.R. §58.34), including tenant-based rental assistance; supportive services (e.g., health care, permanent housing placement, short-term rent/utility payments); operating costs (e.g., maintenance, utilities, staff training); economic development not involving construction or expansion; homebuyer assistance for existing or under-construction units (e.g., down payments, interest buydowns); affordable housing predevelopment costs without physical impact (e.g., site options, zoning); supplemental assistance (e.g., insurance) for previously approved projects; and emergency repairs to existing utilities (e.g., HVAC, hot water heaters). (2) Categorical exclusions not subject to §58.5 or listed federal laws (equivalent to 24 C.F.R. §§58.35(b) and 50.19), if the activities do not materially alter environmental conditions or exceed original project scope, covering acquisition, repair, improvement, reconstruction, or rehabilitation of in-place public facilities/improvements (other than buildings) with no more than 20% change in size or capacity (e.g., sewer lines, sidewalks, street repaving); rehabilitation of 1-to-4 unit residential buildings and related infrastructure (e.g., wells, septics, utility lines); new construction, demolition, acquisition, or disposition of up to 4 scattered-site dwelling units (maximum 4 units per site); and acquisition (including leasing), disposition, or equity loans on existing structures or vacant land retained for the same use. (3) Categorical exclusions subject to §58.5 and listed federal laws (equivalent to 24 C.F.R. §§58.35(a) and 50.20), if the activities do not materially alter environmental conditions or exceed original project scope, covering 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 a Secretary-determined maximum number of 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); new construction, development, demolition, acquisition, or disposition of 15 or more

This section establishes a competitive grant program, to be administered by HUD not later than one year after enactment, to award at least 25 grants annually (or fewer if appropriations are insufficient) to eligible entities—including metropolitan cities, urban counties, other units of general local government, and Indian tribes—that have demonstrated objective improvement in housing supply growth, as determined by HUD using a methodology published in the Federal Register with at least 90 days for public comment. Grants may fund (1) community development block grant-eligible activities under 42 U.S.C. 5305; (2) activities under the Local and Regional Project Assistance Program (49 U.S.C. 6702); (3) matching funds for EPA clean water or drinking water state revolving funds; or (4) supplemental initiatives expanding attainable housing, defined as housing serving a majority of households at or below 80% of area median income (AMI) alongside households up to 100% AMI, or a majority at or below 60% AMI alongside households up to 120% AMI. Applications must describe proposed uses (with attestation of eligibility), provide three-year housing supply data, link activities to the applicant's consolidated plan (i.e., comprehensive housing affordability strategy and community development plan required under 42 U.S.C. 12705 and 24 C.F.R. part 91), and detail prior or ongoing housing supply initiatives (e.g., zoning reforms allowing denser development, reducing parking/lot size/setback requirements, streamlining permitting, or eliminating accessory dwelling unit restrictions). HUD must publish a list of eligible entities on its website, prioritizing geographic diversity.

This section establishes a grant program administered by the Secretary of Housing and Urban Development (HUD) authorizing eligible entities—units of general local government or Indian tribes (as defined in 42 U.S.C. 5302(a)), municipal membership organizations—to select pre-reviewed designs (i.e., pattern books pre-assessed for local building standards) for covered structures (i.e., low- or mid-rise buildings with no more than 25 dwelling units, including accessory dwelling units, duplexes, triplexes, fourplexes, cottage courts, townhouses, and multiplexes) to facilitate mixed-income affordable housing (i.e., housing with monthly costs not exceeding 30% of income for households earning no more than 80% of area median income). In awarding grants, the Secretary must consider (1) an entity's need for affordable housing, (2) presence of high-opportunity areas (as defined in 12 C.F.R. §1282.1), (3) coordination with state agencies, and (4) coordination with state, local, and regional transportation authorities. Of amounts available annually, at least 10% must be reserved for rural areas (i.e., any area other than a city or town with a population of less than 50,000 inhabitants). Grant recipients must report to HUD on (1) grant impacts on affordable housing production and supply, (2) selected pre-reviewed designs, (3) permits issued for such designs, and (4) housing units produced. HUD must encourage public dissemination of design information via websites and share best practices on its website. The Secretary may require repayment of grants if designs are not adopted within five years (unless extended). The section authorizes appropriations of such sums as necessary, with up to 5% for technical assistance to recipients and prospective applicants.

This section amends the federal transit capital investment grants program (49 U.S.C. 5309), which provides competitive grants to state and local governments for new and improved bus and rail transit projects, by (1) defining "pro-housing policy" to include state or local measures removing regulatory barriers to housing construction or preservation (e.g., reducing parking minimums, establishing by-right approvals, or eliminating minimum lot sizes); (2) authorizing the Secretary of Transportation, in evaluating project justification under subsection (g)(2), to increase a project's rating by 1 point on the 5-point scale (high, medium-high, medium, medium-low, or low) based on documented pro-housing policies accessible to transit facilities along the project route—considering expected housing production including affordable units—and requiring consultation with the Secretary of Housing and Urban Development; (3) authorizing a similar rating increase for project benefits under subsection (h)(6), with the same considerations and consultation requirement; and (4) requiring grant applicants to report information on projects receiving such rating adjustments.

This section establishes the Blighted Building to Housing Conversion Program (Pilot Program) within the HOME Investment Partnerships Program (i.e., formula grants to states and participating jurisdictions for affordable housing and community development), under which, for FY2027 through 2031, the Secretary of Housing and Urban Development may award competitive grants to participating jurisdictions using up to $100 million of HOME funds exceeding $1.35 billion annually. Grants, which are in addition to HOME formula allocations, range from $1 million to $10 million if $100 million is available (or are sized to maximize awards if less funding is available) and may fund acquisition, demolition, health hazard remediation, site preparation, construction, renovation, or rehabilitation of vacant and abandoned commercial or industrial buildings (e.g., warehouses, factories, malls) into attainable housing (i.e., serving households up to 100% or 120% of area median income, with a majority of units affordable to those at or below 80% or 60%, respectively); HOME requirements for rental, sale, and resale apply. In awarding grants, the Secretary must prioritize economically distressed communities, qualified opportunity zones, needs identified in consolidated plans, and jurisdictions with ordinances reducing non-safety regulatory barriers to conversions; the Secretary may waive or modify HUD statutes or regulations (except for fair housing, nondiscrimination, labor standards, or environmental requirements). Not later than 180 days after the Pilot Program ends, the Secretary must submit a report to Congress studying its impacts on local tax bases, affordable housing access (especially for elderly, disabled, and veteran households), homeownership, and blight removal.

This section directs the Federal Housing Administration (FHA) Commissioner, in consultation with the Secretary of Housing and Urban Development (HUD), to conduct a study assessing (1) the appropriateness of current multifamily loan limits under FHA multifamily mortgage insurance programs (i.e., whether they cover land and construction costs); (2) the Commissioner's authority to set such limits; and (3) the impacts of potentially revising annual adjustments under 12 U.S.C. 1712a—from using the Consumer Price Index for All Urban Consumers to using the Price Deflator Index of Multifamily Residential Units Under Construction (or a combination)—on the General Insurance and Special Risk Insurance Fund, lending availability, multifamily housing prices (including rents), and housing supply. It requires the Commissioner to submit a report to Congress summarizing the study's findings within 180 days of enactment. It further authorizes the HUD Secretary, in consultation with the Commissioner, to conduct notice-and-comment rulemaking to increase multifamily loan limits under the following FHA programs not to exceed specified per-family-unit amounts (differentiated by elevator-type structures and number of bedrooms): (1) section 207 ($83,655–$187,721.50); (2) section 213 ($90,665.50–$188,839); (3) section 220 ($83,655–$187,721.50); (4) section 221 ($83,254.50–$178,008.50); (5) section 231 ($83,254.50–$178,008.50); and (6) section 234 ($92,505.50–$183,425).

This section revises the definition of "manufactured home" under the National Manufactured Housing Construction and Safety Standards Act of 1974 to include structures built with or without a permanent chassis (previously, required to be built on a permanent chassis). (As background, the Act establishes federal construction and safety standards for manufactured homes that preempt inconsistent state and local standards, enabling streamlined production of affordable factory-built housing.) The section further (1) requires states to submit an initial certification to the Secretary of Housing and Urban Development within one year of enactment (two years for states with biennially meeting legislatures) attesting that state laws and regulations treat chassis-less manufactured homes in parity with chassis-equipped homes for financing, title, insurance, manufacture, sale, taxes, transportation, installation, and other areas; (2) requires annual recertifications confirming ongoing compliance; (3) directs the Secretary to publish and maintain a list of compliant states; (4) prohibits the manufacture, installation, or sale of post-enactment chassis-less manufactured homes in non-compliant states; (5) authorizes the Secretary to coordinate with other federal agencies to ensure consistent treatment of such homes under other federal laws; (6) directs the Secretary to provide states with model guidance for certifications; and (7) clarifies that these changes do not limit existing federal preemption of state standards.

This section defines the terms "manufactured home," "modular home" (i.e., factory-built in modules that meet local building codes, transported to the site, installed on foundations, and completed), and "Secretary" (i.e., Secretary of Housing and Urban Development) and addresses barriers to modular home production in Federal Housing Administration (FHA) mortgage insurance programs for new home construction as follows: (1) requires the Secretary to review such programs within one year of enactment to identify regulatory, programmatic, and administrative barriers (including construction draw schedules) for modular home developers and to publish a report with recommended changes; (2) requires the Secretary, within 120 days after the report, to initiate rulemaking on an alternative draw schedule for construction loans to modular and manufactured home developers (with public comment), culminating in a final rule or an explanation for not finalizing it; and (3) authorizes a grant to study the design and feasibility of a standardized uniform commercial code for modular homes (including serialization, construction streamlining, innovation, and financing coordination), with such funds as necessary authorized to be appropriated.

This section amends the Federal Housing Administration (FHA) Title I property improvement and manufactured housing loan insurance program by— (1) expanding eligible loan purposes to include construction of additional or accessory dwelling units, as defined by the Secretary; (2) revising maximum per-loan principal amounts under subsection (b)(1) to— (A) $75,000 for alterations, repairs, and improvements upon or in connection with an existing single-family structure, including a manufactured home; (B) $150,000 (from $60,000) for other residential structures, not exceeding $37,500 (from $12,000) per dwelling unit; (C) $106,405 for single-section manufactured home purchases and $195,322 for multi-section manufactured home purchases; (D) $149,782 for single-section manufactured home purchases with a suitably developed lot and $238,699 for multi-section manufactured home purchases with a suitably developed lot; (E) $43,377 (from $23,226) for lot acquisition; and (H) such amount as prescribed by the Secretary for accessory dwelling unit construction; (3) authorizing the Secretary to set and, as necessary to achieve FHA goals, periodically reset such limits by notice (previously by regulation) using methodology established in advance by regulation, and requiring annual indexing under a method to be developed or selected within one year of enactment (with interim use of the prior indexing method); (4) setting maximum loan maturities at such period, not to exceed 30 years, as determined by the Secretary; (5) simplifying requirements for leases of financed properties to those established by the Secretary; and (6) directing the Secretary of Housing and Urban Development to conduct a study on the cost-effectiveness of off-site construction housing (i.e., manufactured homes built to federal standards and modular homes built in factory modules to state and local codes, transported to site, and placed on foundations) and submit a report to Congress that analyzes factory production impacts on costs, precision, and waste; compliance with housing quality standards relative to site-built homes; 40-year replacement and maintenance costs relative to site-built homes; and applications in accessory dwelling units, two-to-four unit properties, and large multifamily housing.

This section amends Title I of the Housing and Community Development Act of 1974, which authorizes the Community Development Block Grant (CDBG) program, by (1) qualifying eligible activities in section 105(a) with the phrase "Unless otherwise authorized under section 123," before "activities" and (2) adding a new section 123 that establishes a competitive grant program for preservation and reinvestment for community enhancement in eligible manufactured housing communities. The program, administered by the Secretary of Housing and Urban Development by notice, awards grants to eligible recipients—including units of general local government, housing authorities, nonprofits, certified community development financial institutions, Indian tribes, and owner-operators working with such communities—for eligible projects such as (A) community infrastructure, utilities, and land improvements; (B) reconstruction or repair of existing housing; (C) replacement of housing (prohibiting rehabilitation of units built before June 15, 1976, and requiring replacements to comply with Manufactured Home Construction and Safety Standards); (D) planning; (E) resident health, safety, and accessibility activities (e.g., weatherization and disability accommodations); (F) land acquisition for expansion or new construction; (G) resident services (e.g., relocation assistance and eviction prevention); and (H) other Secretary-approved activities to improve living conditions, health, safety, affordability, and sustainability (e.g., community centers). An eligible manufactured housing community houses manufactured homes for permanent occupancy, is affordable to low- and moderate-income households (not exceeding 120% of area median income, as determined by the Secretary), and is either resident-owned (e.g., via cooperative) or committed to remaining affordable to the maximum extent practicable for the longest feasible period. (As background, manufactured housing communities serve low-income households with affordable rental housing but face risks from ownership changes, disrepair, and closures.) Grants prioritize projects benefiting low- and moderate-income residents and preserving long-term affordability.

This section defines a small dollar mortgage as a residential mortgage loan with an original principal obligation of not more than $100,000 secured by real property designed for occupancy of 1 to 4 families that is insured or guaranteed by the Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture or eligible for purchase or securitization by Fannie Mae or Freddie Mac. It requires the Director of the Consumer Financial Protection Bureau to submit to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services, not later than 270 days after enactment, a report analyzing residential mortgage originator compensation practices—including the relative frequency of salary, fixed percentage commissions, volume-based pay, capped commissions, and other mechanisms, particularly those not reducing pay for small dollar mortgages—and their effects on small dollar mortgage availability, along with other barriers to such lending. Following the report, the Director may issue regulations clarifying compensation forms permissible under the prohibition on steering incentives (i.e., barring pay varying by loan terms other than principal) that ensure originators receive no less compensation for small dollar mortgages than for other mortgages.

This section defines a small dollar mortgage as a mortgage with an original principal obligation of less than $100,000 and directs the Director of the Bureau of Consumer Financial Protection (CFPB), in consultation with the Secretary of Housing and Urban Development and the Director of the Federal Housing Finance Agency, to evaluate not later than 270 days after enactment the impact of points-and-fees thresholds under 12 C.F.R. § 1026.43 (i.e., Regulation Z qualified mortgage rule limiting upfront charges) on small dollar mortgage originations. Following that evaluation, the CFPB Director may initiate rulemaking to amend those thresholds to encourage additional small dollar mortgage lending.

This section revises Federal Housing Administration (FHA) appraisal standards under the National Housing Act (12 U.S.C. 1708(g)(5)) to require appraisers for FHA-insured mortgages to (1) be state-certified or licensed (except certain federal employees, who need licensure in only one state or territory); (2) comply with the Uniform Standards of Professional Appraisal Practice (USPAP) competency rule; and (3) complete FHA-specific appraisal education via an FHA- or approved third-party course. Existing FHA-approved appraisers are exempt from the education requirement; all appraisers must comply on or after the effective date of HUD guidance issued within 240 days of enactment and effective 180 days thereafter. The section further (1) authorizes the Appraisal Subcommittee to adjust annual registry fees for appraisal management companies (12 U.S.C. 3338(a)); and (2) requires states to include state credentialed trainee appraisers on the national registry (12 U.S.C. 3332(a), 3338), without mandating states to create such programs.

This section establishes an escrow expansion pilot program under the Family Self-Sufficiency program (i.e., coordinates public housing and Section 8 assistance with services to promote economic self-sufficiency for eligible low-income families). (As background, the escrow accounts in the existing program hold families' increased rental contributions due to earned income gains, which are returned upon successful completion of a self-sufficiency contract.) The Secretary of Housing and Urban Development must select not more than 25 eligible entities (e.g., public housing agencies or other designated administrators) across various states, urban/rural areas, sizes, and types—including private project-based rental assistance owners—to manage interest-bearing escrow accounts for not more than 5,000 covered families receiving Section 8 voucher or public housing assistance. Under the pilot: (1) Entities deposit into escrow any rent increase attributable to covered families' earned income gains (calculated per standard rent provisions), using Section 8 or public housing funds offset by the increased rent payments, but only for families with adjusted income not exceeding 80% of area median income at enrollment; (2) Families may recertify income multiple times per year (at least annually), need not complete a self-sufficiency contract or training plan, and have income gains disregarded for other HUD benefit eligibility; (3) Families may withdraw escrow funds (plus interest), after ceasing welfare assistance, at 5-7 years of account establishment (if continuing participation), upon ending housing assistance (if earlier), for approved self-sufficiency goals before 5 years, or under other Secretary-approved good cause; (4) Entities must notify families of enrollment (with opt-out rights before/after account setup), bar dual participation with the existing Family Self-Sufficiency program, and select participants within 18 months of enactment.

This section permits dwelling units in the Housing Choice Voucher program (i.e., Section 8 tenant-based rental assistance) to satisfy housing quality standards inspection requirements if they passed a physical inspection under specified programs during the preceding 12-month period and the public housing agency (PHA) obtains the results, as follows: (1) low-income housing tax credit under IRC §42; (2) HOME Investment Partnerships Program (42 U.S.C. §12721 et seq.); or (3) Rural Housing Service programs. It further authorizes the Secretary to allow remote or video inspections for units in rural or small areas and clarifies that these provisions do not affect the operation of the specified programs. This section also authorizes PHAs, at the request of a new landlord (i.e., an owner without a prior Housing Choice Voucher contract), to conduct an initial inspection of a unit prior to tenant selection; such an inspection satisfying standards remains valid if a lease with an assisted tenant is executed within 60 days, and requires PHAs to provide selected families a list of such pre-approved units.

This section defines terms including the Department of Housing and Urban Development (HUD), the Long-Term Disaster Recovery Fund, and the HUD Secretary; assigns HUD offices and officers specified duties related to disaster coordination, long-term recovery, resiliency, and mitigation—including leading under the National Response Framework, National Disaster Recovery Framework, and National Mitigation Framework; coordinating disaster assistance under title I of the Housing and Community Development Act of 1974 (i.e., Community Development Block Grant (CDBG) programs); supporting housing needs of disaster-impacted vulnerable and low-income households; collaborating with the Federal Emergency Management Agency (FEMA) and Small Business Administration; promoting mitigation best practices; providing technical assistance; and aiding state, tribal, and local governments in resilience planning—and establishes the Office of Disaster Management and Resiliency in the Office of the HUD Secretary to oversee departmental disaster responsibilities and coordinate with FEMA, the Small Business Administration, and HUD's Office of Community Planning and Development. This section further establishes the Long-Term Disaster Recovery Fund as a Treasury account consisting of appropriations and transfers—including CDBG recaptures under specified Housing and Community Development Act authorities and prior unobligated or recaptured balances under the “Community Development Fund” heading—and authorizes amounts in the fund for CDBG disaster recovery grants under new section 124 of the Housing and Community Development Act of 1974 (as added by subsection (d)) and related HUD activities such as salaries, information technology, capacity building, technical assistance, and pre-disaster readiness. Of each amount appropriated or transferred to the fund, 3% is set aside for such activities (in addition to other funding), with specified amounts transferable to HUD program office salaries and expenses or used for administering prior CDBG disaster funds; not less than 0.1% of each series of fund awards is transferred to the HUD Office of Inspector General.

This section reauthorizes the HOME Investment Partnerships Program—under which HUD provides formula grants to states and units of general local government (i.e., participating jurisdictions) for the development of affordable rental and homeownership housing—with such sums as necessary. It also (1) increases the administrative cost cap for participating jurisdictions to 15% (from 10%) of their HOME allocation and simplifies the treatment of contributions toward the 25% nonfederal matching requirement; (2) authorizes HUD to remove noncompliant participating jurisdictions from reallocation eligibility; (3) revises affordable housing qualification standards to narrow foreclosure exceptions that terminate low-income use restrictions, establish alternative criteria for small-scale housing (i.e., no more than four rental units occupied solely by low-income households), and define a homebuyer's purchase price to include the amount borrowed or estimated post-rehabilitation value (adjusted for resale limits); (4) eliminates the requirement to commit HOME funds within 24 months of receipt; and (5) reforms homeownership resale restrictions to require either sale only to subsequent low-income buyers at a formula-based price providing reasonable return or assistance recapture (except if net proceeds are insufficient), while permitting community land trusts to acquire such housing under specified terms.

This section expands the Multifamily Mortgage Foreclosure Act of 1981 to include multifamily mortgages held by the Secretary of Agriculture under sections 514, 515, or 538 of the Housing Act of 1949 (i.e., direct loans for farm labor housing under sec. 514, rural rental housing for low-income families and elderly/disabled under sec. 515, rural cooperative housing under sec. 516, and guaranteed rural rental housing under sec. 538); requires preservation of attached rental assistance payments and contracts under section 521 of that Act for dwelling units in such properties during foreclosure, management, or disposition; and authorizes use of those contracts for existing projects under sections 514, 515, or 516. (As background, these Rural Housing Service programs provide subsidized financing and rental assistance for affordable rural multifamily housing serving low-income households, seniors, persons with disabilities, and farmworkers; the 1981 Act standardizes foreclosure procedures previously limited to HUD-held mortgages.) This section further (1) directs the Secretary of Agriculture to submit to Congress, not later than six months after enactment, a publicly available report on section 521(a) rental assistance subsidies provided to borrowers with section 502 single-family loans—including total subsidies, amounts recaptured, and recapture time/costs; (2) authorizes appropriations for FY2026 through FY2030 for increased Rural Housing Service staffing and information technology upgrades and separately for FY2026 (available until five years after appropriation) for technology improvements to process and manage housing loans, to be completed within five years of appropriation; and (3) permanently establishes a Housing Preservation and Revitalization Program for sections 514, 515, and 516 multifamily projects, which requires annual written notices to owners of maturing loans (within four years) listing extension or rental assistance decoupling options and notices to tenants two years prior to maturity (in plain English and translated for predominant non-English languages) detailing maturity impacts and tenant rights to assisted housing or vouchers, authorizes loan restructuring to ensure project viability (e.g., reducing/eliminating interest, deferring payments, subordinating/reducing/reamortizing debt, providing advances/incentives including reasonable owner returns, permanently removing units from income restrictions due to sustained vacancies), and mandates renewal of section 521(a)(2) rental assistance contracts upon restructuring for the shorter of 20 years or the restructured loan term (subject to annual appropriations), if the owner agrees to maintain the project.

This section establishes a new cohort of up to 25 high-performing public housing agencies (PHAs), designated under the Public Housing Assessment System or Section 8 Management Assessment Program, in the Moving to Work (MTW) demonstration program (42 U.S.C. 1437f note)—which allows PHAs flexibility to blend and manage public housing and Section 8 Housing Choice Voucher funds to promote resident self-sufficiency—named the “Economic Opportunity and Pathways to Independence Cohort,” following completion of an initial report. The Secretary of Housing and Urban Development (HUD) must select agencies competitively, limited to those administering no more than 27,000 aggregate vouchers and public housing units (with no more than 10 agencies administering 1,000 or fewer units, no more than 6 administering 1,001–6,000 units, and no more than 4 administering 6,001–27,000 units); prioritize geographic diversity and service to families with children or youth aging out of foster care above the national average; and impose requirements that at least 75% of assisted families are very low-income and that agencies implement a reasonable rent policy to encourage employment and self-sufficiency (e.g., excluding some or all earned income from rent calculations). HUD's waiver authority for this cohort is limited to waivers listed in specified HUD notices as of January 2025 (FR–5994–N–05, as amended by FR–5994–N–06), excluding waivers 1c, 1d, 1e, 1f, 1k, 1l, 1o, 1p, 1q, 6, 7, 9a, 9h, and 12 (including modifications or safe harbors); HUD may consider policy options such as opt-out savings or escrow accounts and reporting positive rental payments to consumer reporting agencies (as defined in 15 U.S.C. 1681a) with resident consent. Participating PHAs may use up to 5% of annual Section 8(o) housing assistance payments (42 U.S.C. 1437f(o)) for other compliant purposes, with renewal funding determined by the standard non-MTW formula (adjusted for inflation on expended funds), and administrative fees under Section 8(q), public housing operating subsidies under Section 9(e), and capital funding under Section 9(d) (42 U.S.C. 1437g) determined by standard non-MTW formulas.

This section increases the administrative cost allowance for the Emergency Solutions Grants (ESG) program—which provides grants to help homeless persons and those at risk of homelessness with shelter, services, and rapid re-housing—to 10% of grant amounts (from 7.5%). The section also amends the Continuum of Care (CoC) program—which funds coordinated services including permanent supportive housing, rapid re-housing, and prevention for homeless persons—as follows: (1) in §402(g), establishes time limits of up to two years (renewable annually or biennially) for designations as a unified funding agency; (2) in §422, authorizes two-year notices of funding availability (subject to appropriations), extends certain grant terms to two years (from one), and strikes certain prior limitations on grant awards; (3) in §423(a), limits housing lease terms to not more than 15 years (previously at applicant and sponsor discretion), authorizes payments for up to six months of rent and utility arrears, and raises the administrative cost threshold to the greater of $70,000 or 5% of grant amount (from 3%); (4) in §425, directs the Comptroller General to study workforce compensation for CoC services (e.g., case managers) biennially beginning one year after enactment and report findings and recommendations to Congress and HUD; and (5) in §426, permits pre-inspections up to 60 days before leasing, remote or video inspections in rural or small areas, and leasing prior to inspection if the unit passed a recent alternative federal inspection.

This section establishes waiver authority for recipients under the Emergency Solutions Grants (ESG) program— which provides formula grants to local governments, States, and nonprofits for rapid rehousing, shelter operations, and homelessness prevention—to request waivers of the spending cap established pursuant to section 415(b) of the McKinney-Vento Homeless Assistance Act for amounts provided in FY2026 through FY2029. Waiver requests must include (1) a demonstration of local needs and circumstances, (2) a detailed plan for fund use, (3) justification tied to the recipient's most recent Consolidated Annual Performance and Evaluation Report, and (4) public input solicited after notifying subrecipients (including local continuums of care) of waiver availability. The Secretary of Housing and Urban Development must publish requests online, approve or deny them within 60 days (denying any involving relocation or threatened relocation of individuals or property without housing options), and publish any recipient-initiated revocations (which require subrecipient input and justification). (Thus, approved waivers remain in effect through FY2029 unless revoked.)

This section requires the Director of the Federal Housing Finance Agency to issue a regulation or order, not later than 6 months after enactment, directing Fannie Mae and Freddie Mac to include a specified disclaimer—“If yes, you may qualify for a VA Home Loan. Consult your lender regarding eligibility.”—below the military service question on the Uniform Residential Loan Application. It further directs the Government Accountability Office to submit a report to Congress, not later than 18 months after enactment, assessing whether at least 80% of lenders using the Uniform Residential Loan Application have included the disclaimer.

This section amends the Federal Housing Administration (FHA) informed consumer choice disclosure requirements to include, in addition to loan-to-value ratio information, a comparison to a Department of Veterans Affairs (VA) loan assuming prevailing interest rates. This section further requires the Director of the Federal Housing Finance Agency (FHFA), not later than six months after enactment, to issue a rule directing each enterprise (i.e., Fannie Mae and Freddie Mac) to include a military service question on the Uniform Residential Loan Application (URLA) positioned above the signature line.

This section amends income exclusion provisions in the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(4)(B)) to exclude disability benefits received by veterans under chapters 11 or 15 of title 38, U.S. Code—(1) for determining income eligibility under the HUD-Veterans Affairs Supportive Housing (HUD-VASH) program (section 8(o)(19)); and (2) for HUD-VASH households' eligibility for other housing assistance. (Such exclusions do not apply to adjusted income.) This section further requires the Secretary of Housing and Urban Development, when determining a veteran's eligibility to rent a residential dwelling unit constructed on Department of Veterans Affairs property (per 38 U.S.C. 901) on or after enactment under a HUD-administered housing assistance program, to exclude such disability benefits from income.

This section requires annual congressional testimony from specified federal housing officials. Specifically, (1) it directs the Secretary of Housing and Urban Development to testify, at committee request, before the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services on the status of all HUD programs; and (2) it requires the President of the Government National Mortgage Association (GNMA), the Federal Housing Commissioner, the Administrator of the Rural Housing Service, the Executive Director of the Department of Veterans Affairs Loan Guaranty Service, and the Director of the Federal Housing Finance Agency to testify before appropriate congressional committees on federally made, guaranteed, or insured mortgage loans. This section further amends the National Housing Act to eliminate the requirement that the Mortgagee Review Board consult with the Federal Housing Administration Advisory Board when reporting to the Secretary and to require such reports also be provided to Congress.

This section requires additional reporting by the Secretary of Housing and Urban Development on the Federal Housing Administration (FHA) Mutual Mortgage Insurance Fund (MMIF)—which supports FHA single-family mortgage insurance under section 1709 of the National Housing Act—as follows: (1) monthly reports to Congress on the Fund's capital ratio required under section 205(f)(2) and notification to Congress as soon as practicable if the Fund falls below that ratio; (2) in the annual independent actuarial study of the Fund, a definition of first-time homebuyer (i.e., a borrower whose consumer credit report indicates no prior consumer-purpose loan secured by 1- to 4-unit residential real property) and a requirement that the report detail the number of loans originated to first-time homebuyers in each census tract, as well as the Fund's financial position, recommended adjustments for soundness, and underwriting quality control; and (3) in the annual report on FHA multifamily mortgage insurance, data on first-time homebuyers using the new definition. This section also directs the Government Accountability Office (GAO), not later than 180 days after enactment, to study and report to Congress on metrics for FHA sustainable homeownership (e.g., borrower default, non-FHA/VA/Rural Housing Service refinance, mortgage payoff with return to renting) particularly for first-time homebuyers and the feasibility of FHA developing and reporting a borrower performance scorecard to Congress.

This section revises duties of the United States Interagency Council on Homelessness by (1) requiring an annual report to the President and Congress on the status of the National Strategic Plan to End Homelessness and any modifications with reasons therefor, rather than annual updates to the plan itself; and (2) adding a requirement to testify annually before Congress. (The Council coordinates the federal response to homelessness across 19 agencies.)

This section, the NeighborWorks Accountability Act, establishes an Office of Inspector General (OIG) for the Neighborhood Reinvestment Corporation (NeighborWorks America)—a congressionally chartered nonprofit that supports neighborhood revitalization through grants and technical assistance to local housing services programs—by adding the corporation to the list of establishments under 5 U.S.C. §415(a)(1)(A). The section further (1) authorizes appropriations of such sums as necessary to the corporation's OIG and prohibits transferring to it any program operating responsibilities, including organizational assessments and grantee oversight; and (2) requires annual audits of the corporation's accounts by independent certified public accountants in accordance with generally accepted auditing standards, notwithstanding other OIG audit work.

This section establishes a consumer right to request a reconsideration of value or subsequent appraisal for a consumer credit transaction secured by the consumer's principal dwelling by inserting new subsection (j) in Section 129E of the Truth in Lending Act (15 U.S.C. 1639e). It defines "unacceptable appraisal practice" (e.g., using inaccurate data, inappropriate comparables, unverified data from interested parties, or improper adjustments) and "unsupported" (i.e., lacking relevant evidence and logic), and requires creditors to implement a review and resolution procedure that includes (1) conducting an appraisal review prior to consumer delivery; (2) allowing one consumer request prior to loan closing or within 60 calendar days of credit denial if the appraisal is believed unsupported, deficient due to an unacceptable practice, or discriminatory; (3) providing written disclosures at application and appraisal delivery with a standardized request format listing borrower details, property information, reasons for challenge, and up to five alternative comparable properties; (4) clarifying unclear requests; and (5) using a standardized format to forward requests to appraisers with defined turn-time expectations and revision instructions. If material deficiencies, unacceptable practices, or discrimination are identified and not corrected, the creditor must—at the consumer's request for non-discrimination issues—order a subsequent appraisal at the creditor's expense and refer the original appraisal and findings to the appropriate appraisal licensing agency or regulatory board (with a subsequent appraisal required without consumer request in discrimination cases).

This section directs the Secretaries of Housing and Urban Development (HUD), Agriculture (USDA), and Veterans Affairs (VA) to establish a memorandum of understanding, or other interagency agreement, to share housing-related research and market data. Not later than 180 days after enactment, the secretaries must jointly submit to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Finance a report describing (1) opportunities for collaboration to reduce inefficiencies in housing programs; (2) federal laws and regulations adversely affecting the availability and affordability of new construction of assisted housing and single-family and multifamily residential housing subject to mortgages insured under title II of the National Housing Act (FHA-insured mortgages), title V of the Housing Act of 1949 (USDA rural housing loans), or chapter 37 of title 38, U.S. Code (VA home loan guaranty program); and (3) recommendations for Congress regarding such laws and regulations. (The report must be published in the Federal Register for a 30-day public comment period prior to submission.)

This section directs the Secretaries of Housing and Urban Development (HUD) and Agriculture (USDA), not later than 180 days after enactment, to enter into a memorandum of understanding (MOU) to (1) evaluate categorical exclusions under the environmental review process for housing projects funded by either department; (2) develop a process to designate a lead agency and streamline adoption of Environmental Impact Statements and Environmental Assessments approved by the other department for jointly funded housing projects; (3) maintain compliance with environmental regulations under 24 CFR part 58 as in effect on January 1, 2025, except as required to amend categorical exclusions via standard rulemaking; and (4) evaluate the feasibility of a joint physical inspection process for such projects. The section further requires the Secretaries, within the same 180-day period, to establish an advisory working group—including representatives from affordable housing nonprofits, state housing agencies, home builders and developers, property managers, public housing agencies, assisted housing residents and their representatives, and housing contract administrators—to consult on the MOU. Not later than one year after enactment, the Secretaries must submit to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services a report with recommendations for legislative, regulatory, or administrative actions to improve the efficiency and effectiveness of HUD- and USDA-funded housing projects, without reducing resident safety, shifting long-term costs to residents, or undermining environmental standards.

This section directs the Secretary of Housing and Urban Development (HUD), subject to a determination under subsection (b), to conduct a study on work requirements implemented prior to enactment by public housing agencies (PHAs) participating in the Moving to Work (MTW) demonstration (42 U.S.C. 1437f note) that proposed such requirements as innovative. (As background, MTW allows select PHAs flexibility in administering public housing and Section 8 tenant-based rental assistance to promote self-sufficiency.) The study must assess short-, medium-, and long-term benefits and challenges for PHAs and participants—including effects on homelessness rates, poverty rates, asset building, earnings growth, job attainment and retention, and PHA administrative capacity—using quantitative and qualitative evidence such as participant and resident council interviews; HUD must report initial findings within 180 days of enactment to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. The study requirement applies only if HUD determines there are sufficient such PHAs for a rigorous evaluation and that the study would not negatively impact low-income families receiving assistance through those PHAs.