H.R. 855 — Housing Innovation Act

This section states congressional findings that (1) housing is a critical component of national infrastructure; (2) affordable housing shortages contribute to long commutes, financial stress, environmental pollution, and public health risks; (3) new approaches to housing planning, design, and construction are needed to diversify workforce housing options; and (4) greater coordination of federal resources across agencies could expand and diversify the housing supply.

This section increases from 7 to 9 the number of Assistant Secretaries in the Department of Housing and Urban Development (HUD) who are appointed by the President with the advice and consent of the Senate; establishes an Office of Housing Innovation headed by an Assistant Secretary for Housing Innovation appointed by the President; and assigns the new Assistant Secretary primary responsibility for (1) accumulating and disseminating information on innovative practices to increase housing supply, particularly in areas facing shortages, affordability challenges, and traffic congestion; (2) administering grants under the Housing Innovation Act to foster partnerships for such solutions; (3) coordinating with other HUD offices and federal agencies, including the Department of Transportation, on workforce housing policies; and (4) providing technical assistance to local governments for housing-related planning reforms. The section further requires the new office's staff to include at all times two detailees from the Department of Transportation (one with transit or active transportation expertise and one from the Build America Bureau with expertise in the TIFIA and RRIF programs), one detailee from the Environmental Protection Agency with expertise on public health impacts of housing and community development, and one detailee from the Department of Energy with expertise on renewable energy and energy efficiency for low- and moderate-income communities. It adjusts the Executive Schedule to provide for 9 HUD Assistant Secretaries at level IV (from 8), makes a conforming amendment changing from 7 to 8 the specified number of Assistant Secretaries in one clause, and authorizes $50 million for FY2026 and each fiscal year thereafter for the office's salaries and expenses.

This section establishes a competitive grant program administered by the Secretary of Housing and Urban Development (HUD), acting through the Assistant Secretary of Housing Innovation, to provide up to $2 million per grant to eligible localities—units of general local government located in urbanized areas, as defined by the Census Bureau—for housing planning processes and associated regulatory reforms (e.g., zoning ordinances, parking requirements). Grant-funded plans must address (1) increasing housing supply, (2) improving affordability, and (3) diversifying housing options (e.g., multifamily, micro-units, co-working integrated developments, student housing) within the locality or defined areas such as neighborhoods near transit facilities and job centers; and (4) improving regional commute times, reducing congestion, or lowering vehicle miles traveled. The Secretary selects grantees based on criteria including the proposed planning process's potential to achieve these goals and update local policies, attention to metropolitan workforce housing needs, details on public outreach and policy adoption actions, completion timelines, and coordination with relevant metropolitan planning organizations.

This section establishes a grant program, administered by the Secretary acting through the Assistant Secretary of Housing Innovation, under which eligible partnerships receive grants of up to $500,000 to conduct research and pilot studies supporting local governments' housing and community development plans. Eligible partnerships must include at least one unit of local government, college or university, research institution, or nonprofit organization; for repeat grantees, the maximum grant amount is the lesser of $500,000 or the non-Federal match amount certified by the partnership. Grant funds may be used only for studies investigating workforce housing and commuting improvements, including (1) last-mile transit connections, (2) higher education student accommodations, (3) elderly home-sharing, (4) business-residential integration, (5) neighborhood mobility options, (6) modular construction techniques, (7) public health via built-environment changes such as pedestrian-friendly streets, (8) housing impacts on social mobility and economic prospects, and (9) other Secretary-approved activities consistent with the bill's goals.

This section establishes a grant program, administered by the Secretary through the Assistant Secretary of Housing Innovation, under which partnerships that include at least one academic institution may receive funding to support educational and community outreach programs focused on housing, community development, and regional planning. Grants to such partnerships are limited to the lesser of $200,000 or, for partnerships that have previously received a grant under the program, the amount of non-Federal contributions certified by the partnership.

This section directs the Comptroller General of the United States to review the effectiveness of the grant programs under sections 4, 5, and 6 and submit a report on the results and conclusions to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs not later than three years after enactment of this Act.

This section authorizes appropriations of $100 million for each of fiscal years 2026 through 2032 to the Secretary of Housing and Urban Development to carry out the Act, of which, in each fiscal year: (1) 90% is available only for grants under section 4; (2) 5% is available only for grants under section 5; and (3) 5% is available only for grants under section 6. It expresses the sense of Congress that such funding should not reduce federal funding for any existing affordable housing program.