S. 2651 — ROAD to Housing Act of 2025

This section reforms HUD's housing counseling program by— (1) revising grantee selection criteria under subsection (a)(4)(C) to require recipients to be geographically diverse and include organizations serving urban or rural areas (from prior emphasis on adequate distribution to areas with high foreclosure rates); (2) in subsection (e), establishing performance reviews of participating agencies for compliance (including aggregate counselor performance) and authorizing the Secretary to compare individual pre-purchase counselors' performance to default rates on covered mortgage loans (i.e., 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), with remedial actions for underperforming counselors such as required education, retesting, or permanent certification suspension after two failures; (3) in subsection (i), adding authority to deny renewal of assistance to noncompliant organizations or counselors based on such reviews, subject to 60 days' prior notice and an optional informal conference to consider factors beyond their control (e.g., lender noncooperation); and (4) adding subsection (j) to require an opportunity for foreclosure mitigation counseling for borrowers 30 or more days delinquent on covered mortgage loans (FHA title II, sections 184/184A, VA, or USDA loans), with fair market counseling costs for FHA loans paid by the Mutual Mortgage Insurance Fund if statutory requirements are met.

This section makes the Rental Assistance Demonstration (RAD) program permanent for FY2012 and each fiscal year thereafter (from expiring September 30, 2029); strikes the fourth and twenty-second provisos; requires adoption of a mandatory tenant lease and management plan addendum for properties with assistance converted under RAD (if not covered by another program); changes references from “Second Component” to “First Component” in the twenty-seventh through thirty-fourth provisos; and adds requirements for the Secretary of Housing and Urban Development (HUD) to (1) annually assess and publish findings on RAD conversion impacts (e.g., public housing preservation, private investment leveraging, resident retention, and tenant rights); (2) impose remedial actions, civil money penalties, or other sanctions for material violations; and (3) affirm that RAD does not diminish property owner or tenant rights under current law and regulations. (As background, RAD enables public housing agencies to convert public housing and certain HUD-assisted multifamily properties to project-based Section 8 rental assistance—project-based vouchers (PBV) or project-based rental assistance (PBRA)—to attract private capital for property rehabilitation and preservation.)

This section authorizes the Secretary of Housing and Urban Development, when awarding competitive grants for housing construction, modification, rehabilitation, or preservation, to give additional weight to applicants located in or primarily serving a qualified opportunity zone (i.e., an economically distressed community designated under the Internal Revenue Code to attract private investment).

This section establishes the Housing Supply Frameworks Act, which states congressional findings on the U.S. housing supply shortage, including regulatory barriers such as zoning and land use regulations, and defines terms including "affordable housing" (i.e., housing with payments not exceeding 30% of household monthly income), "local zoning framework," and "state zoning framework." It requires the Assistant Secretary for Policy Development and Research of HUD to publish guidelines and best practices on state and local zoning frameworks not later than 3 years after enactment of the Act to support housing production across income levels. Development occurs over a 2-year period beginning on enactment and includes Federal Register notice-and-comment on draft guidelines and consultation with a task force comprising planners, developers, community members, public housing and transit authorities, local and state officials, academics, and home builders. The guidelines must (1) outline models for state enabling legislation or procedures; (2) recommend reforms including reduction or elimination of parking minimums, increases in floor area ratios, building heights, and by-right uses (e.g., duplexes, triplexes, quadplexes), elimination of accessory dwelling unit restrictions, transit-oriented development, streamlined review processes, reduced impact fees, and cost-effective building codes; and (3) address public engagement, protest petitions, community benefit agreements, affordability preservation, and prevention of disruption in low-income areas.

This section provides definitions for the Whole-Home Repairs Act, including— (1) "affordable unit" as a unit with monthly rent not more than 30% of gross income for households at or below 80% of area median income; (2) "eligible homeowner" as an owner-occupant (including of manufactured homes or inherited properties) with household income at or below 80% of area median income or eligible for specified programs (e.g., Medicaid, CHIP, SSI benefits); (3) "eligible landlord" as an owner of fewer than 10 eligible rental properties (majority affordable units, ≤50 total units operated as primary residences); (4) "forgivable loan" as a lien-secured loan to eligible landlords, forgivable after 3 years of compliance; (5) "implementing organization" as a unit of general local government, State, tribal entity, or qualified nonprofit administering the program; and (6) "qualified nonprofit" as an organization with HUD funding history (e.g., CDBG, HOME), ≥2 years of repair/weatherization experience, EPA certification for lead/renovation or energy/water programs, or status as a community development financial institution.

This section increases the limit on investment securities that national banks (under 12 U.S.C. 24, Eleventh) and state member banks (under 12 U.S.C. 338a) may purchase and hold for their own account to 20% of capital and surplus (from 15%). (Thus, these banks may hold up to an additional 5% of capital and surplus in such securities, which include certain government and corporate obligations.)

This section establishes an adjustment mechanism for Community Development Block Grant (CDBG) formula allocations under section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306) to metropolitan cities and urban counties (covered recipients) based on housing growth rates, as calculated by the Secretary of Housing and Urban Development (HUD) using Census Bureau address data at the block level. (1) Defines eligible recipients as covered recipients 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 rate; 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. (2) Defines extremely high-growth recipients as eligible recipients with a current annual growth rate (average annual increase in housing units over five years) of 4% or higher and housing growth improvement rate as current growth rate divided by prior growth rate (over prior five years). (1) Provides a bonus allocation to eligible recipients with a housing growth improvement rate at or above the median (excluding extremely high-growth recipients) or that are extremely high-growth recipients, equal to their pro rata share (based on housing units) of total decreases from other eligible recipients. (2) Decreases allocations by 10% to eligible recipients with a housing growth improvement rate below the median (excluding high-growth outliers). (Thus, bonuses to high-growth areas are funded by cuts to low-growth areas.)

This section (1) authorizes the Secretary of Housing and Urban Development 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 National Environmental Policy Act (NEPA) compliance and related laws (except where another procedure is specified); and (2) amends section 305(c) to include Indian tribes, alongside states and units of general local government, as eligible to assume the Secretary's NEPA responsibilities, updates related headings, and defines Indian tribe by reference to section 4(13)(B) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(13)(B)). (As background, section 305(c) enables grantees to certify their own compliance with NEPA and related environmental laws for HUD-assisted multifamily and housing projects, thereby streamlining federal approvals. Thus, this expands streamlined environmental reviews to federally recognized Indian tribes.)

This section directs the Secretary of Housing and Urban Development (HUD), pursuant to NEPA (42 U.S.C. 4333) and the Administrative Procedure Act (5 U.S.C. 553), to issue regulations expanding and reclassifying specified housing-related activities under HUD environmental review regulations (24 CFR parts 50 and 58, as in effect on January 1, 2025). It defines an infill project as one within municipal limits on previously disturbed land of not more than 5 acres that is adequately served by utilities and services, substantially surrounded by development, repurposes vacant/underutilized land or dilapidated/abandoned structures, and serves residential or commercial purposes. The reclassifications are as follows: (1) Exempt activities (equivalent to 24 CFR 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/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/guarantees) for previously approved projects; and emergency assistance for existing utilities (e.g., HVAC, hot water heaters). (2) Categorical exclusions not subject to 24 CFR 58.5 or the authorities in 24 CFR 50.4 (equivalent to 24 CFR 58.35(b) and 50.19)—if the activities do not materially alter environmental conditions or exceed the project's original scope—including acquisition/repair/rehabilitation/reconstruction of in-place public facilities/improvements (e.g., water/sewer lines, curbs, sidewalks, street repaving) without more than 20% change in size/capacity; rehabilitation of 1-to-4 unit residential buildings and related infrastructure (e.g., wells, septics, utility lines); and new construction/development/demolition/acquisition/disposition of 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) Categorical exclusions subject to 24 CFR 58.5 and the authorities in 24 CFR 50.4 (equivalent to 24 CFR 58.35(a) and 50.20)—if the activities do not materially alter environmental conditions or exceed the project's original scope—including acquisitions of open space/residential property retained for the same use or converted to open space for high-risk area relocation; conversion of existing office buildings to residential development (maximum units and not more than 20% change in building size, as determined by the Secretary); new construction/development/demolition/acquisition/disposition of 5 to 15 dwelling units (maximum 15 units per site); new construction/development/demolition/ac

This section establishes a competitive grant program, to be administered by the Secretary of Housing and Urban Development (HUD) not later than one year after enactment, to award at least 25 grants annually (or fewer if insufficient funds) to eligible entities that have demonstrated objective improvement in housing supply growth, as determined by a HUD methodology published in the Federal Register with at least 90 days for public comment prior to any notice of funding opportunity. Eligible entities include metropolitan cities, urban counties, other units of general local government, or Indian tribes meeting the supply growth criteria; HUD must publish a list of eligible entities on its website. Grant funds may be used for (1) eligible activities under the Community Development Block Grant (CDBG) program (42 U.S.C. 5305); (2) activities under the Department of Transportation's Local and Regional Project Assistance Program (49 U.S.C. 6702); (3) matching funds for state revolving funds under EPA clean water or drinking water programs; or (4) local initiatives supplementing ongoing efforts to expand the supply of attainable housing (i.e., housing serving a majority of households at or below 80% of area median income plus households up to 100% of area median income, or a majority at or below 60% plus households up to 120%). Applications must describe proposed uses (with attestation of eligibility), provide data on recent housing supply increases (including impacts on income levels, quality, and affordability), explain ties to the applicant's consolidated plan (i.e., comprehensive housing affordability strategy and community development plan), and detail past or ongoing housing supply initiatives (e.g., zoning reforms allowing denser development, reducing parking/lot size/setback requirements, streamlining permitting, expanding accessory dwelling units, or providing tax incentives).

This section establishes a grant program administered by the Secretary of Housing and Urban Development (HUD) authorizing awards to eligible entities—units of general local government (as defined in 42 U.S.C. 5302(a)), municipal membership organizations, and Indian tribes—to select pre-reviewed designs (i.e., pattern books pre-approved 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, infill development, duplexes, triplexes, fourplexes, cottage courts, courtyard buildings, townhouses, and multiplexes) of mixed-income affordable housing (i.e., housing with total monthly costs not exceeding 30% of income for households earning no more than 80% of area median income). In evaluating applications, HUD must consider (1) an eligible entity's need for affordable housing, (2) presence of high-opportunity areas in its jurisdiction, (3) coordination with state agencies, and (4) coordination with state, local, and regional transportation planning authorities; at least 10% of funds must be reserved for rural areas (i.e., areas with populations under 50,000). Grant recipients must report to HUD on program impacts (including permits issued and housing units produced using selected designs), and HUD must promote public availability of the designs and best practices via websites; HUD may require repayment of grants if designs are not adopted within five years (absent extension). The program is authorized such sums as necessary, with up to 5% for technical assistance to recipients and prospective applicants.

This section amends the Capital Investment Grants program (i.e., competitive grants to state and local governments for major new or improved fixed guideway transit projects, corridor-based bus rapid transit, and core capacity improvements) as follows: (1) defines "pro-housing policy" to include adopted state or local policies removing regulatory barriers to housing construction or preservation (e.g., reducing parking minimums, establishing by-right approvals based on objective standards, reducing lot sizes, or raising height limits); (2) directs the Secretary of Transportation, in rating New Starts projects' justification on a 5-point scale (high, medium-high, medium, medium-low, low), to increase the rating by 1 point for applicants submitting documented evidence of pro-housing policies in areas accessible to transit along the project route—considering whether such policies will produce housing units, including affordable units below area median income, appropriate to demand—and to consult the Secretary of Housing and Urban Development in developing this process; (3) directs a similar potential rating increase, with the same considerations and consultation, for Small Starts projects' benefits rating; and (4) requires annual reports to include information on projects receiving such rating adjustments.

This section establishes a five-year pilot program, known as the Blighted Building to Housing Conversion Program, under the HOME Investment Partnerships Program (HOME), under which—for FY2027 through FY2031, if HOME funding exceeds $1.35 billion—the Secretary of Housing and Urban Development (HUD) may use up to $100 million of excess amounts annually to award competitive grants of $1 million to $10 million to eligible entities (i.e., HOME participating jurisdictions) for converting vacant and abandoned commercial or industrial buildings into attainable housing (i.e., serving households at or below 100% or 120% of area median income, with a majority of units affordable to those at or below 80% or 60%, respectively). As background, HOME provides formula block grants to states and participating localities for rental and homeownership affordable housing development, production, and rehabilitation. These grants are in addition to an eligible entity's HOME formula allocation; HUD must prioritize applications from areas of economic distress, qualified opportunity zones, those addressing needs in consolidated plans, or localities reducing regulatory barriers to conversions; and eligible uses include acquisition, demolition, hazard remediation, site preparation, construction or rehabilitation, and community land trusts, with HOME rental, sale, and resale requirements applying and HUD holding waiver authority for most administered statutes or regulations. This section further directs HUD, within 180 days after the pilot ends, to submit a report to Congress analyzing 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 HUD Secretary, to study (1) the appropriateness of current multifamily loan limits under FHA multifamily mortgage insurance programs to 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 the Consumer Price Index for All Urban Consumers to the Census Bureau's Price Deflator Index of Multifamily Residential Units Under Construction (March-to-March)—or a combination thereof, including on the General Insurance and Special Risk Insurance Fund, lending availability, multifamily prices, and housing supply. The section requires the Commissioner to report findings to Congress within 180 days of enactment. The section further authorizes the HUD Secretary, in consultation with the FHA Commissioner and through notice-and-comment rulemaking, to increase per-family-unit loan limits for FHA insurance under specified National Housing Act programs (i.e., §§207, 213, 220, 221, 231, and 234) without exceeding the following maximums for non-elevator-type and elevator-type structures by bedroom count: (1) §207—non-elevator: $83,655 (no bedroom), $92,664 (1), $110,682 (2), $136,422 (3), $154,440 (4+); elevator: $96,525 (no), $108,108 (1), $132,561 (2), $166,023 (3), $187,721.50 (4+); (2) §213—non-elevator: $90,665.50 (no), $104,524 (1), $126,060 (2), $161,354.50 (3), $179,757.50 (4+); elevator: $96,525 (no), $109,362 (1), $132,981 (2), $172,033.50 (3), $188,839 (4+); (3) §220—non-elevator: $83,655 (no), $92,664 (1), $110,682 (2), $136,422 (3), $154,440 (4+); elevator: $96,525 (no), $108,108 (1), $132,561 (2), $161,023 (3), $187,721.50 (4+); (4) §221—non-elevator: $83,254.50 (no), $94,498.50 (1), $114,224 (2), $143,372 (3), $162,461 (4+); elevator: $89,927 (no), $103,090 (1), $125,354 (2), $162,162 (3), $178,008.50 (4+); (5) §231—non-elevator: $

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 (from on a permanent chassis). (As background, the Act establishes federal construction and safety standards for manufactured homes—factory-built dwellings subject to HUD oversight and federal preemption of inconsistent state laws—thus potentially expanding the supply of affordable housing by including chassis-less homes.) The section further (1) requires states to submit an initial certification to HUD within one year of enactment (two years for states with biennial legislatures) attesting that they treat chassis-less manufactured homes in parity with those built on a chassis for financing, title, insurance, manufacture, sale, taxes, transportation, installation, and other areas, with annual recertifications thereafter; (2) prohibits the manufacture, installation, or sale of post-enactment chassis-less manufactured homes in non-compliant states; (3) directs the HUD Secretary to coordinate with other federal agencies to ensure consistent treatment of such homes under other federal laws; (4) requires HUD to provide states with model guidance for certifications; and (5) states that these changes do not limit the Act's federal preemption of state standards.

This section defines "modular home" (i.e., a factory-built home constructed in modules that meet applicable state and local building codes, transported to the site, installed on foundations, and completed) and "manufactured home" (as defined in the National Manufactured Housing Construction and Safety Standards Act of 1974). It further directs the Secretary of Housing and Urban Development to (1) review Federal Housing Administration (FHA) construction financing programs to identify barriers to modular home developers, including construction draw schedules and administrative measures under the National Housing Act, (2) publish a report within one year of enactment describing the results and recommending changes to reduce or eliminate such barriers, and (3) initiate rulemaking within 120 days after the report to establish an alternative draw schedule for modular and manufactured home developers—including a public comment period—either issuing a final rule or explaining why not. This section also authorizes the Secretary to award a grant to study the design and feasibility of a standardized uniform commercial code for modular homes—evaluating serialization, construction streamlining, innovation, and financing coordination—and authorizes such funds as necessary for that purpose.

This section revises FHA authorities under section 2 of the National Housing Act (12 U.S.C. 1703), which insure loans by private lenders for single-family home improvements, manufactured home purchases and lot development, and historic preservation, to authorize financing for construction of additional or accessory dwelling units and increase maximum principal loan amounts as follows: (1) $75,000 for alterations, repairs, and improvements to an existing single-family structure (including a manufactured home); (2) $150,000 (from $60,000) and $37,500 (from $12,000) for other improvements; (3) $106,405 for purchase of a single-section manufactured home and $195,322 for a multi-section manufactured home; (4) $149,782 for a single-section manufactured home with lot and $238,699 for a multi-section manufactured home with lot; and (5) $43,377 (from $23,226) for lot development, plus such amount as prescribed for accessory dwelling unit construction. It further (1) authorizes the Secretary to set or periodically reset these limits by notice (previously regulation), with annual indexing required using Secretary-determined data (deadline one year after enactment, prior method interim); (2) sets maximum loan maturities at up to 30 years as determined by the Secretary; and (3) simplifies eligibility for leased properties. This section also directs HUD to study the cost-effectiveness of off-site construction housing (i.e., manufactured and modular homes) and report to Congress within an unspecified timeframe on factory production advantages, quality standards compliance, 40-year maintenance costs versus site-built homes, and multifamily applications (e.g., accessory dwelling units, two-to-four unit properties).

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) revising the introduction to eligible activities in section 105(a) (42 U.S.C. 5305(a)) to specify that such activities are eligible unless otherwise authorized under new section 123; and (2) adding section 123 to establish a competitive grant program, administered by the Secretary of Housing and Urban Development (HUD) by notice, for eligible recipients to fund eligible projects that develop or improve eligible manufactured housing communities (i.e., parks accommodating manufactured homes for permanent residential occupancy that are affordable to households at or below 120% of area median income and either resident-owned or committed to long-term affordability). Eligible recipients include units of general local government, housing authorities, resident-owned communities or cooperatives, nonprofits with housing expertise, community development financial institutions (CDFIs, as defined in 12 U.S.C. 4702), Indian tribes, tribally designated housing entities, states, and owner-operators working with such communities. Eligible projects encompass (A) community infrastructure, utilities, and land improvements; (B) reconstruction or repair of existing housing; (C) replacement of homes (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, accessibility, and weatherization activities; (F) land acquisition for expansion or new construction; (G) resident and community services such as relocation assistance and down payment aid; and (H) other Secretary-approved activities enhancing living conditions, shared spaces, health, safety, affordability, and sustainability. HUD must prioritize grants 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 $100,000 or less 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, within 270 days of enactment, to submit a report to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services analyzing loan originator compensation practices in the residential mortgage market—including salary, fixed- or variable-percentage commissions, volume-based pay, capped commissions, combinations thereof, and other mechanisms (particularly those ensuring originators receive no less compensation for small dollar mortgages than for larger ones)—and their effects on small dollar mortgage availability, along with other barriers to such lending. Following the report, the Director may issue regulations clarifying permissible compensation forms under the prohibition on steering incentives (15 U.S.C. 1639b(c)) that result in loan originators receiving no less compensation for small dollar mortgages than for non-small dollar mortgages.

This section defines a small dollar mortgage as a mortgage with an original principal obligation of less than $100,000. It 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 Regulation Z (12 CFR 1026.43)—which limit qualified mortgage eligibility to protect consumers from excessive upfront costs based on loan size—on small dollar mortgage originations and authorizes subsequent CFPB rulemaking to amend those thresholds to encourage additional such lending.

This section revises Federal Housing Administration (FHA) appraiser standards under the National Housing Act (12 U.S.C. 1708(g)(5)) to require (A) state certification or licensure where the property is located (except certain federal employees, who need licensure in only one state or territory), (B) compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) competency rule, and (C) verifiable FHA-specific appraisal education via an FHA- or approved third-party course; it grandfather's the education requirement for appraisers approved by FHA prior to the effective date. It prohibits appraisals for FHA-insured mortgages by noncompliant appraisers on or after the effective date and directs the Secretary of Housing and Urban Development to issue implementing mortgagee letter or guidance within 240 days of enactment, effective no later than 180 days thereafter. The section further authorizes the Appraisal Subcommittee to adjust, with Council approval, annual registry fees for appraisal management companies (12 U.S.C. 3338(a)); adds state credentialed trainee appraisers to the national registry requirements, including roster maintenance and reporting of credentials, sanctions, and disciplinary actions (12 U.S.C. 3332(a), 3338); and clarifies that states are not required to establish trainee programs.

This section establishes an escrow expansion pilot program under which HUD selects not more than 25 eligible entities (i.e., public housing agencies and other administrators of section 8 tenant- or project-based rental assistance or section 9 public housing) to manage interest-bearing escrow accounts for not more than 5,000 covered families receiving such assistance. (As background, the escrow feature builds on the existing Family Self-Sufficiency program, which coordinates HUD rental assistance with services to promote economic independence for low-income families by escrowing rent increases from earned income.) Under the pilot, for covered families with adjusted income not exceeding 80% of area median income at enrollment, entities deposit into escrow any increase in family rent attributable to earned income gains (calculated per standard section 3 or 8(o) rules), using section 8 or 9 funds offset by the increased rent payment; families are not required to complete a Family Self-Sufficiency contract or training plan and cannot participate in both programs. Families may withdraw escrow funds, including interest, after ceasing welfare assistance and (1) not earlier than 5 years nor later than 7 years after account establishment (with continuation option); (2) upon ceasing housing assistance if earlier than 5 years; (3) earlier than 5 years for entity-approved self-sufficiency goals; or (4) under other Secretary-approved good cause. Additional features include multiple annual income recertifications (at least once yearly); disregard of earned income increases for other HUD program eligibility or benefits; family notification, detailed program description, and opt-out rights (including pre-account establishment and anytime thereafter); and entity applications ensuring geographic (urban/rural across states) and type/size variety, with awards not later than 18 months after enactment.

This section modifies the housing quality standards (HQS) inspection requirements under the Housing Choice Voucher program (i.e., Section 8 tenant-based rental assistance, which aids low-income families in renting privately owned housing) as follows: (1) deems a dwelling unit to meet HQS if it passed a physical inspection in the preceding 12-month period under the low-income housing tax credit program (IRC §42), HOME Investment Partnerships Program (42 U.S.C. §12721 et seq.), or Rural Housing Service assistance—and the public housing agency (PHA) obtains the results; (2) authorizes the Secretary to allow remote or video inspections for units in rural or small areas; and (3) specifies that these provisions do not affect the operation of the specified programs. The section further authorizes PHAs, at the request of a new landlord (i.e., one without a prior housing assistance payment contract), to conduct an initial HQS inspection before tenant selection—which satisfies HQS and subsequent requirements if a lease with a voucher family is executed within 60 days—and requires PHAs to provide selected families with a list of such pre-approved units.

This section directs the Department of Housing and Urban Development (HUD) to lead and coordinate its disaster-related responsibilities under the National Response Framework, National Disaster Recovery Framework, and National Mitigation Framework; administer related programs including disaster recovery assistance under title I of the Housing and Community Development Act of 1974 (i.e., Community Development Block Grants (CDBG)); support housing needs of disaster-impacted communities, especially vulnerable and low-income households; collaborate with the Federal Emergency Management Agency (FEMA) and Small Business Administration (SBA) to align regulations and reduce duplication; promote mitigation and resilient planning best practices; coordinate technical assistance for CDBG recipients; and assist state, tribal, and local governments in developing resilience and recovery capacity. This section also establishes in HUD's Office of the Secretary the Office of Disaster Management and Resiliency to oversee departmental disaster preparedness and response and coordinate with FEMA, SBA, and HUD's Office of Community Planning and Development. Additionally, this section establishes the Long-Term Disaster Recovery Fund in the Treasury, to consist of appropriations, transfers from recaptured CDBG funds under specified authorities, and unobligated balances from prior Community Development Fund disaster appropriations; makes amounts in the Fund available for CDBG grants under new section 124 of the Housing and Community Development Act of 1974 (as added by subsection (d)) and for supporting HUD activities such as salaries, expenses, information technology, capacity building, technical assistance, and pre-disaster readiness (with a 3% set-aside for such activities); authorizes specified transfers of set-aside amounts; and requires transfer of at least 0.1% of each series of Fund awards to HUD's Office of Inspector General.

This section reauthorizes the HOME Investment Partnerships Program—providing formula block grants to states and participating localities for the production, rehabilitation, and preservation of affordable rental and homeownership housing—with such sums as necessary. It further (1) increases the cap on administrative and capacity-building uses of HOME funds to 15% (from 10%); (2) simplifies the treatment of nonfederal contributions by striking matching requirements for certain in-kind contributions; (3) authorizes the Secretary of Housing and Urban Development (HUD) to remove noncompliant participating jurisdictions from reallocation eligibility and requires reallocations to the same entity type unless otherwise specified; (4) revises affordable housing qualification standards by narrowing foreclosure exceptions to preserve low-income use, adding alternative criteria for small-scale housing (not more than 4 rental units occupied solely by low-income households), and defining homebuyer purchase price to include estimated post-rehabilitation value subject to resale limits; (5) eliminates the requirement to commit HOME funds within 24 months of receipt; and (6) reforms homeownership resale restrictions by requiring jurisdictions to establish either buyer qualification and price controls for reasonable owner return or assistance recapture (except if no net proceeds), and permitting community land trusts to acquire units under preemptive options or similar instruments.

This section expands the definition of multifamily mortgage under the Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C. 3702(2)) to include mortgages held by the Secretary of Agriculture under sections 514 (farm labor housing loans), 515 (rural rental housing for low-income families), or 538 (loan guarantees for rural rental housing) of the Housing Act of 1949. (As background, these Rural Housing Service programs finance multifamily housing for farmworkers, elderly, disabled, and low-income rural residents, and the expansion subjects them to streamlined federal foreclosure procedures previously limited to HUD-held mortgages.) It further requires the Secretary, during foreclosure, management, or disposition of such properties, to maintain attached rental assistance payments under section 521 of the Housing Act of 1949 (42 U.S.C. 1490a) for affected dwelling units and permits use of those contracts for assistance to existing 514, 515, or 516 (farm labor housing grants) projects. This section directs the Secretary of Agriculture to submit to Congress, not later than six months after enactment, a report studying section 521(a) rental assistance subsidies provided to section 502 (single-family rural housing) loan borrowers—including total subsidy amounts, recaptured amounts, and associated time and costs. It authorizes appropriations of such sums as necessary for Rural Housing Service staffing and information technology upgrades in each of FY2026 through FY2030 and for FY2026 technology improvements to process and manage housing loans (available through five years after appropriation, with improvements required within that period). This section permanently establishes a housing preservation and revitalization program (new section 545 of the Housing Act of 1949) for 514, 515, and 516 multifamily projects. The program requires annual notices to owners of maturing loans (four years in advance) on extension or decoupling options and to tenants (two years in advance, in plain language and relevant translations) on maturity impacts and rights to assisted housing or vouchers; authorizes loan restructuring (e.g., interest reduction, payment deferral, debt subordination, financial incentives); and requires renewal of section 521(a)(2) rental assistance contracts for up to 20 years (or restructured loan term) upon restructuring, subject to annual appropriations and owner agreement to project improvements.

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 (authorized under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note)), to be entitled the “Economic Opportunity and Pathways to Independence Cohort.” (As background, the MTW demonstration allows participating PHAs flexibility to combine and manage public housing operating subsidies, capital funds, and Section 8 voucher funding to promote resident self-sufficiency and economic opportunity.) The section directs the Secretary of Housing and Urban Development (HUD) to select agencies through a competitive process limited to PHAs administering no more than 27,000 aggregate housing vouchers and public housing units (with no more than 10 selected 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); requires geographic diversity; and prioritizes PHAs serving families with children and youth aging out of foster care at above-national-average rates. For selected PHAs, the section (1) limits waiver authority to those codified as of January 2025 in specified HUD notices (FR–5994–N–05 and FR–5994–N–06), prohibiting waivers 1c, 1d, 1e, 1f, 1k, 1l, 1o, 1p, 1q, 6, 7, 9a, 9h, or 12 (including modifications or safe harbors); (2) authorizes up to 5% of annual Section 8(o) housing assistance payments to be used for other compliant purposes, with renewal funding determined by the standard formula (adjusted for inflation on diverted amounts) and administrative fees, public housing operating subsidies, and capital funding determined by standard formulas applicable to non-MTW PHAs; and (3) requires at least 75% of assisted families to be very low-income families, a reasonable rent policy to encourage employment and self-sufficiency (e.g., excluding some or all earned income from rent calculations), and continuation of assistance for substantially the same number of families as before MTW participation. The section further authorizes the Secretary to consider policy options such as opt-out savings or escrow accounts and, with resident consent, reporting positive rental payments to consumer reporting agencies (as defined in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a)).

This section increases the administrative cost cap for the Emergency Solutions Grants (ESG) program—which provides funding to state and local governments and nonprofits for homelessness prevention, shelter, and rapid re-housing activities—to 10% (from 7.5%). It also amends the Continuum of Care (CoC) program—which coordinates local efforts to organize housing and services for homeless individuals and families—as follows: (1) in §402(g), establishes time limits on designations as a unified funding agency to not more than two years, with annual or biennial applications and renewals; (2) in §422, authorizes two-year notifications of funding availability (subject to appropriations), with specified processes for second-year awards, renewals, replacements for underperforming projects, transition grants, and excess funds; strikes certain prior limitations on grant terms in §422(c)(2); and extends the collaborative applicant performance review period to two years (from one year) in §422(e); (3) in §423(a), limits rapid re-housing lease terms to not more than 15 years; authorizes payment of not more than six months of rent and utility arrears; and revises the administrative cost cap for new projects to the greater of $70,000 or 5% (from 3%); (4) in §425, directs the Comptroller General to study workforce compensation for supportive services biennially beginning one year after enactment and report findings and recommendations to congressional committees and HUD; and (5) in §426, authorizes flexibilities in housing unit inspections, including 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 an alternative federal inspection within the prior period.

This section establishes authority for recipients under the Emergency Solutions Grants (ESG) program—formula grants to states, metropolitan cities, urban counties, and territories for homeless assistance activities such as emergency shelter, rapid re-housing, and prevention—to request waivers of the spending cap established pursuant to section 415(b) for funds provided in FY2026 through FY2029. (1) Waiver requests must demonstrate local needs, detail planned fund uses, justify alignment with the recipient's most recent Consolidated Annual Performance and Evaluation Report, and include solicited public input; recipients must notify subrecipients (including local continuums of care) of waiver availability and solicit public input prior to submission. (2) The Secretary of Housing and Urban Development (HUD) must publish all requests on the HUD website and approve or deny them within 60 days, denying any involving relocation (or threats thereof) of individuals or property without providing emergency shelter, rapid re-housing, transitional housing, permanent supportive housing, or other permanent options. (3) Approved waivers remain in effect through FY2029 unless revoked by the recipient, who must notify the Secretary, solicit subrecipient input, provide justification, and have the revocation and justification published by HUD on the HUD website.

This section requires the Director of the Federal Housing Finance Agency (FHFA), not later than six months after the date of enactment, to require each enterprise (i.e., Fannie Mae and Freddie Mac) to include a disclaimer below the military service question on the Uniform Residential Loan Application stating, “If yes, you may qualify for a VA Home Loan. Consult your lender regarding eligibility.” It further directs the Government Accountability Office (GAO), not later than 18 months after the date of enactment, to submit to Congress a report on whether at least 80% of lenders using the Uniform Residential Loan Application have included the disclaimer.

This section amends FHA informed consumer choice disclosures under section 203(f) of the National Housing Act (12 U.S.C. 1709(f)) to require, in addition to loan-to-value ratio information, a comparison to a loan guaranteed or insured under VA's chapter 37 (38 U.S.C.) at prevailing interest rates—without requiring the lender to determine the borrower's eligibility for such loans. It further directs the Federal Housing Finance Agency, through regulations due within six months of enactment, to require Fannie Mae and Freddie Mac to include a military service question on the Uniform Residential Loan Application, 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)) by adding two new clauses that exclude disability benefits received by veterans under 38 U.S.C. chapters 11 (service-connected compensation) or 15 (non-service-connected pensions) from annual income calculations used to determine (1) eligibility for the HUD-Veterans Affairs Supportive Housing (HUD-VASH) program (i.e., tenant-based rental assistance under section 8(o)(19) for homeless veterans), and (2) eligibility of HUD-VASH households for other federal housing assistance. The exclusions do not apply to income used in calculating adjusted income (i.e., annual income minus certain exclusions and deductions). Separately, the section directs the Secretary of Housing and Urban Development, when determining a veteran's eligibility to rent a residential unit constructed on or after enactment on Department of Veterans Affairs (VA) property (per 38 U.S.C. 901), to exclude such disability benefits from income if the unit receives HUD housing assistance.

This section requires (1) the Secretary of Housing and Urban Development to testify annually, at the request of the relevant committee, 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) annual testimony before appropriate congressional committees, regarding federally made, guaranteed, or insured mortgage loans, from the President of the Government National Mortgage Association, 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. This section further amends provisions governing the Federal Housing Administration (FHA) Mortgagee Review Board (i.e., the board that imposes civil money penalties and other sanctions on FHA-approved mortgagees for violations) by eliminating the requirement to consult with the FHA Advisory Board and by requiring reports to Congress in addition to the Secretary.

This section establishes additional reporting requirements for the Federal Housing Administration (FHA) Mutual Mortgage Insurance Fund (MMIF), which insures single-family home mortgages. Specifically, it (1) requires the Secretary of Housing and Urban Development to submit monthly reports to Congress on the MMIF capital ratio required under section 205(f)(2) of the National Housing Act and to notify Congress as soon as practicable if the Fund falls below that ratio; (2) for the annual independent actuarial study of the MMIF, defines first-time homebuyer as a borrower whose consumer report indicates no prior loan secured by 1- to 4-unit residential real property and requires the study to detail loans originated to first-time homebuyers in each census tract, as well as existing elements; (3) includes first-time homebuyers (using the new definition) in FHA's annual report on minority borrowers under section 203(w)(2); and (4) directs the Government Accountability Office (GAO), not later than 180 days after enactment, to study and report to Congress on metrics for sustainable homeownership (e.g., borrower default, non-FHA/VA/Rural Housing Service refinancing, payoff and return to renting) particularly for first-time homebuyers and the feasibility of FHA developing a borrower performance scorecard using those metrics for congressional reporting.

This section revises duties of the United States Interagency Council on Homelessness by (1) requiring annual reports to the President and Congress on the status of the National Strategic Plan to End Homelessness and any modifications made to the plan with reasons therefor (instead of updating the plan annually), and (2) requiring the Council to testify annually before Congress. (As background, the Council coordinates federal, state, local, and private efforts to prevent and end homelessness.)

This section, the NeighborWorks Accountability Act, designates the Neighborhood Reinvestment Corporation as an establishment subject to the Inspector General Act of 1978 (i.e., entitled to an Office of Inspector General under 5 U.S.C. § 415(a)(1)(A)); authorizes appropriations of such sums as necessary to that Office of Inspector General; prohibits transferring to it any of the corporation's program operating responsibilities, including organizational assessments and grantee oversight; and requires annual audits of the corporation's accounts by independent certified public accountants pursuant to generally accepted auditing standards, notwithstanding any Office of Inspector General audit work. (As background, the Neighborhood Reinvestment Corporation—also known as NeighborWorks America—continues the Urban Reinvestment Task Force's work in establishing and supporting neighborhood housing services programs and preservation projects that partner residents, local governments, and financial institutions to rehabilitate declining neighborhoods through inspections, public and private investments, increased lending, and revolving loan funds for credit-challenged homeowners.)

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 if the consumer believes the initial appraisal report is unsupported (i.e., not supported by relevant evidence and logic), deficient due to an unacceptable appraisal practice, or discriminatory. Unacceptable appraisal practices include nine specified issues (e.g., using inaccurate data, references to crime rates or statistics, inappropriate comparables, or improper adjustments). The section requires creditors to implement a review and resolution procedure that includes (1) conducting their own appraisal review prior to delivering the report to the consumer; (2) providing policies allowing one consumer request prior to loan closing or within 60 calendar days of credit denial; (3) disclosing the process in writing at application and upon appraisal delivery, using a standardized consumer request format with specified elements (e.g., property details, description of concerns, up to five alternative comparables); (4) clarifying unclear requests; and (5) using a standardized format to forward requests to appraisers with defined elements (e.g., turn-time expectations, instructions for revised reports). If material deficiencies (including unsupported or unacceptable practices) are identified and not corrected or if discrimination is suspected, the creditor must—at the consumer's request or due to discrimination—order a subsequent appraisal at its own expense and refer the report and findings to the appropriate appraisal licensing agency or regulatory board. (Thus, this amends appraisal independence rules under the Truth in Lending Act to empower consumers to challenge potentially flawed or biased home appraisals, which affect mortgage approval, pricing, and terms.)

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 to facilitate evidence-based policymaking. The section further requires the three Secretaries to jointly submit a report to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Finance, not later than 180 days after enactment of this Act. The report must (1) describe opportunities for increased collaboration among the agencies to reduce inefficiencies in housing programs; (2) list federal laws and regulations that adversely affect the availability and affordability of new construction for assisted housing and single-family and multifamily residential housing subject to mortgages insured under title II of the National Housing Act (i.e., FHA mortgage insurance), title V of the Housing Act of 1949 (i.e., USDA rural housing loans), or chapter 37 of title 38, U.S. Code (i.e., VA home loan guaranty program); and (3) provide recommendations to Congress on those laws and regulations. The report must be published in the Federal Register for public comment for 30 days 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 of 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) 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 features in their applications. (As background, MTW allows select PHAs flexibility in public housing and Section 8 tenant-based assistance to promote resident 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; the Secretary must report initial findings within 180 days to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. The study requirement applies only if the Secretary 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.