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<dc:title>118 HR 10171 IH: Prefabricated Housing and Zoning Enhancement Act of 2024</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2024-11-19</dc:date>
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<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<distribution-code display="yes">I</distribution-code><congress display="yes">118th CONGRESS</congress><session display="yes">2d Session</session><legis-num display="yes">H. R. 10171</legis-num><current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber><action display="yes"><action-date date="20241119">November 19, 2024</action-date><action-desc><sponsor name-id="S000510">Mr. Smith of Washington</sponsor> introduced the following bill; which was referred to the <committee-name committee-id="HBA00">Committee on Financial Services</committee-name>, and in addition to the Committees on <committee-name committee-id="HWM00">Ways and Means</committee-name>, and <committee-name committee-id="HSY00">Science, Space, and Technology</committee-name>, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned</action-desc></action><legis-type>A BILL</legis-type><official-title display="yes">To encourage local government reform of zoning and permitting to enhance housing affordability and economic growth, and for other purposes.</official-title></form><legis-body id="HC0364D8140AD4B67A841AC0F49FA8793" style="OLC"><title id="H7E10C96E6EF54E7782A4AE0065D41A24" commented="no"><enum>I</enum><header>Zoning and permitting reform</header><section id="H84F389CEB235414CAD4B8E3F6D819DD5" section-type="section-one" display-inline="no-display-inline" commented="no"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Prefabricated Housing and Zoning Enhancement Act of 2024</short-title></quote>.</text></section><section id="H4EF4E5C2A883492AA867F6DE96683A0A" display-inline="no-display-inline" section-type="subsequent-section" commented="no"><enum>2.</enum><header>Zoning and permitting reform incentive grant program</header><subsection id="H66BC3FD75D30448A8D213690748A2194" commented="no"><enum>(a)</enum><header>Congressional findings</header><text display-inline="yes-display-inline">The Congress finds that—</text><paragraph id="HDA856F388A84452481EBA9EABA9397AA" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">restrictive zoning and permitting processes contribute to housing shortages and inflated housing costs, and hinder economic development; and</text></paragraph><paragraph id="HFA6FAD7E092F49358ED4A2EF563BF1D0" commented="no"><enum>(2)</enum><text>encouraging local governments to reform zoning and permitting practices can increase housing supply, improve affordability, and stimulate local economies.</text></paragraph></subsection><subsection id="H202F2E1A8FB646248270FD5297F00F28" commented="no"><enum>(b)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this section, establish and carry out a grant program to provide financial incentives to units of local government that implement zoning reforms and permitting reforms.</text></subsection><subsection id="H3148275D18624B5B8BAC5E7E437DE547" commented="no"><enum>(c)</enum><header>Eligibility</header><paragraph id="HD078B3022B774FE5B784B27E53E54972" commented="no"><enum>(1)</enum><header>In general</header><text>To be eligible to receive a grant under this section, a unit of local government shall—</text><subparagraph id="HF8F4462D13674E588900ABB3C518D458" commented="no"><enum>(A)</enum><text>enact zoning and permitting reforms during the 18-month period before the date of application; and</text></subparagraph><subparagraph id="H6F7B0B6E480847CBA63B9DE312733C05" commented="no"><enum>(B)</enum><text>submit an application at such time and in such manner as the Secretary may reasonably require that includes a description of—</text><clause id="H5118BF8F74604BB59654D9771B03A1B1" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">any zoning and permitting reforms enacted by such unit of local government in the previous 18 months;</text></clause><clause id="HCA16AF49730A4A94950981C1F2C1CEEE" commented="no"><enum>(ii)</enum><text>how such reforms are expected to increase housing supply and make the housing supply more affordable; and </text></clause><clause id="HD8405BA68D514EFEB5767FEF67FCD750" commented="no"><enum>(iii)</enum><text>how the unit of local government intends to monitor the impacts of such zoning and permitting reforms.</text></clause></subparagraph></paragraph><paragraph id="H84DA196242994D9198563F167E5CA599" commented="no"><enum>(2)</enum><header>Approval by Secretary</header><text display-inline="yes-display-inline">The Secretary may only award grants under this section to a unit of local government with zoning and permitting reforms that the Secretary determines will actively increase housing supply and make the housing supply more affordable. </text></paragraph></subsection><subsection id="HAFFFE325DAAE430DBFCDAD420C224B2B" display-inline="no-display-inline" commented="no"><enum>(d)</enum><header>Priority</header><text>The Secretary shall give priority to applicants based on the extent to which—</text><paragraph id="HA36F30E930D44CD7A20C16927A6D5E6E" commented="no"><enum>(1)</enum><text>the zoning and permitting reforms adopted by an applicant—</text><subparagraph id="HACBE6E3B1D274705A0939495C45920A3" display-inline="no-display-inline" commented="no"><enum>(A)</enum><text>significantly increase the potential for development of affordable housing and housing for middle-income households;</text></subparagraph><subparagraph id="H6E2709104D344A04B1754A214D1BA085" commented="no"><enum>(B)</enum><text>reduce barriers to the conversion of non-residential buildings to residential use;</text></subparagraph><subparagraph id="HC925250B6AFE423B8821074806C60F0B" commented="no"><enum>(C)</enum><text>implement expedited permitting processes for housing developments; and</text></subparagraph><subparagraph id="HAD3B0761085841D6AD66F0EC0D020FC9" commented="no"><enum>(D)</enum><text>encourage mixed-use development and higher-density zoning near transportation hubs; and </text></subparagraph></paragraph><paragraph id="HDB6E199B6E6648B98727DD79BB843FE2" display-inline="no-display-inline" commented="no"><enum>(2)</enum><text>the applicant has—</text><subparagraph id="H8723F01BA3FC4531A49DBD189E7036BF" commented="no"><enum>(A)</enum><text>established partnerships with community land trusts; </text></subparagraph><subparagraph id="H1FF7DAF8EA6D4395A7D84CD4891DC5EE" commented="no"><enum>(B)</enum><text>provided funding, land, or other support for community land trust initiatives; and </text></subparagraph><subparagraph id="HEF78289BA3B3415AA5B84457073BCFFC" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">used innovative methods to integrate community land trust models into housing and community development strategies, including inclusionary zoning policies that facilitate community land trust projects and tax incentives for land donations to community land trusts.</text></subparagraph></paragraph></subsection><subsection id="H045C48A16B0E4E4BB4E6ED2E563CEF14" commented="no"><enum>(e)</enum><header>Use of grant amounts</header><text>Amounts from a grant under the program under this section may be used by a unit of local government only for—</text><paragraph id="H8EA7BE5A5E284C508FE20C26EAB40EA8" commented="no"><enum>(1)</enum><text>infrastructure improvements related to increased housing development;</text></paragraph><paragraph id="HDD1D538E768D40A49189FC14D2CAF9B5" commented="no"><enum>(2)</enum><text>technical assistance and capacity building for local planning and development agencies; and</text></paragraph><paragraph id="H57877A292A4742FAA2FB763532FB8997" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">establishing or enhancing community engagement and consultation processes related to zoning and permitting reforms.</text></paragraph></subsection><subsection id="H444E303C062C422A989E47050B80DB73" commented="no"><enum>(f)</enum><header>Technical assistance</header><text>The Secretary shall provide technical assistance to units of local government awarded grants under this section to assist such units of local government in—</text><paragraph id="H56FDB60BC2054E3FA56514F7B62DBFFE" display-inline="no-display-inline" commented="no"><enum>(1)</enum><text>fostering successful partnerships with community land trusts;</text></paragraph><paragraph id="H2A13657C3F674760A85F1D3C2EB0B3AB" commented="no"><enum>(2)</enum><text>developing projects; and</text></paragraph><paragraph id="HDB6C2C7AFCE8476A82319A5396CDA199" commented="no"><enum>(3)</enum><text>engaging with the community.</text></paragraph></subsection><subsection id="H5C40B425D4154259B8E2F1D617A940DC" commented="no"><enum>(g)</enum><header>Supplemental community land trust amounts</header><paragraph id="HA6A0450E60644001B81DE80B96F0EE78" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Each unit of local government awarded a grant under this section shall be eligible to receive additional amounts from the Secretary to be used by the unit of local government to support the establishment and expansion of community land trusts.</text></paragraph><paragraph id="H7E9FD9E7722E42CBBDEDCA11E2CA82B1" commented="no"><enum>(2)</enum><header>Use of amounts</header><text display-inline="yes-display-inline">Supplemental amounts provided under this subsection may only be used for—</text><subparagraph id="H880862F3BAA44EE992082F10E7E54F63" commented="no"><enum>(A)</enum><text>local capacity building activities of a local community land trust; </text></subparagraph><subparagraph id="H23287E528E6B428FA8FB17E0D82950A9" commented="no"><enum>(B)</enum><text>land acquisition by a local community land trust;</text></subparagraph><subparagraph id="HA9234229D303460782394927BE71D71E" commented="no"><enum>(C)</enum><text>project development by local community land trust; or</text></subparagraph><subparagraph id="H01F75DF3C0204EB081DA1C2D20EF494F" commented="no"><enum>(D)</enum><text>other operation needs of a local community land trust.</text></subparagraph></paragraph><paragraph id="H32ACACE3EE9A4D8580EB27B4749C1809" commented="no"><enum>(3)</enum><header>Priority</header><text display-inline="yes-display-inline">When providing supplemental amounts under this subsection, the Secretary shall give priority to units of local government that can demonstrate a history of supporting and collaborating with community land trusts.</text></paragraph><paragraph id="HDBA6F1A4E79A4578BA754E1D0DF9E063" commented="no"><enum>(4)</enum><header>Authorization of appropriations</header><subparagraph id="H516C15C8044D4F3899AD3BBB81E021BC" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">There is authorized to be appropriated to the Secretary such sums as are necessary to provide supplemental amounts under this subsection.</text></subparagraph><subparagraph id="H9C6225B9222F443DAA406191A1B0930B" commented="no"><enum>(B)</enum><header>Availability of amounts</header><text>Any amounts appropriated pursuant to this paragraph shall remain available until expended.</text></subparagraph></paragraph></subsection><subsection id="H20A3121BE1A84ED6BE9E7BEA338268A3" commented="no"><enum>(h)</enum><header>Reports</header><paragraph id="H51DFAA82226D48D59F808AD2B4D7DB22" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Each unit of local government that receives a grant under this section shall, each year, submit a report to the Secretary that includes such information as the Secretary determines necessary to evaluate the impacts of the zoning and permitting reforms enacted by the unit of local government.</text></paragraph><paragraph id="HA1D8245FDD0A46A5B36B7A052BA2690C" commented="no"><enum>(2)</enum><header>Additional requirement</header><text display-inline="yes-display-inline">Each unit of local government that receives supplemental amounts under subsection (g) shall include, in the annual report required under this section, information about the efforts of such unit of local government to promote and collaborate with community land trusts, the outcomes of such efforts, and any barriers encountered by such unit of local government.</text></paragraph><paragraph id="H678ED3B4533C463EBC0C4D98165B2AA8" commented="no"><enum>(3)</enum><header>Report to Congress</header><text>The Secretary shall compile the reports submitted pursuant to paragraph (1) and submit a compilation of such reports to the Congress each year that includes—</text><subparagraph id="H517BD7082CE649469D12FEDFE0054E01" commented="no"><enum>(A)</enum><text>an evaluation of efforts of community land trust initiatives supported with amounts provided under subsection (g) and how such efforts promote long-term affordable housing and sustainable community development; and </text></subparagraph><subparagraph id="HD53DA9FABF1B411EB6CA4B88386AE759" commented="no"><enum>(B)</enum><text>any recommendations the Secretary may have for further legislative or administrative action to encourage zoning and permitting reform.</text></subparagraph></paragraph></subsection><subsection id="HA9C229CAFA924A96BD1E945C94818573" display-inline="no-display-inline" commented="no"><enum>(i)</enum><header>Best practices</header><text display-inline="yes-display-inline">The Secretary shall disseminate best practices and guidelines to units of local government that receive grants under this section relating to the integration of community land trust models into local housing strategies, including mechanisms for ensuring long-term affordability and community stewardship of land.</text></subsection><subsection id="H45E8F47CE800431DAE7FD512E7C81234" commented="no"><enum>(j)</enum><header>Authorization of appropriations</header><paragraph id="H12E658362B4C443E9D6CE877D86463DB" commented="no"><enum>(1)</enum><header>In general</header><text>There is authorized to be appropriated for grants under this section $10,000,000,000 for fiscal year 2025 and each fiscal year thereafter.</text></paragraph><paragraph id="H64AFC21DFFB04241879D452EB20673FB" commented="no"><enum>(2)</enum><header>Availability of amounts</header><text>Any amounts appropriated pursuant to this subsection shall remain available until expended.</text></paragraph></subsection><subsection id="HFB3EF54B76A64A86B996C462B6A9D919" commented="no"><enum>(k)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text><paragraph id="H5CACF15B173D48C990231FC9B945F7CF" commented="no"><enum>(1)</enum><header>Community land trust</header><text display-inline="yes-display-inline">The term <quote>community land trust</quote> means a nonprofit organization that—</text><subparagraph id="H8232354631174B5EA0461BDCEDFA91BC" commented="no"><enum>(A)</enum><text>acquires and holds land for the benefit of the community and operates under community governance to ensure long-term stewardship of land; and</text></subparagraph><subparagraph id="HD1A70C9F5E96478C8240D2F193720991" commented="no"><enum>(B)</enum><text>provides affordable housing opportunities through long-term ground leases, which are subject to community accountability measures and deed restrictions to maintain affordability and compliance with community objectives.</text></subparagraph></paragraph><paragraph id="HB7E7189D935A4D9DA5754B83FF6AE5DA" commented="no"><enum>(2)</enum><header>Permitting reform</header><text> The term <quote>permitting reform</quote> means a modification of permit-related processes that has the effect of significantly decreasing the amount of time associated with obtaining construction or development approvals from a unit of local government.</text></paragraph><paragraph id="H0B7703248C6346EBA412F34B5F3A452C" commented="no"><enum>(3)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of Housing and Urban Development. </text></paragraph><paragraph id="HE2C94EA8A62C46B08F9B2783B608EA8B" commented="no"><enum>(4)</enum><header>Unit of local government</header><text display-inline="yes-display-inline"> The term <quote>unit of local government</quote> means any city, county, town, township, parish, village, or other general purpose subdivision of a State.</text></paragraph><paragraph id="H6A4D8B0C9F3E4B579A4E644FBF6E22C0" commented="no"><enum>(5)</enum><header>Zoning reform</header><text>The term <quote>zoning reform</quote> means a modification to local land use regulations that has the effect of increasing housing capacity and diversity of housing ownership.</text></paragraph></subsection></section></title><title id="H989FAB4EB62B4558832AB77160321E01" commented="no"><enum>II</enum><header>Prefabricated housing incentives programs</header><section id="H128D9FCA63CB4380838B3632C114382A" commented="no"><enum>201.</enum><header>Grant program</header><subsection id="H44B1C99A52F34F55AC08B7143F55F88D" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this title, establish a grant program to provide financial assistance to eligible entities.</text></subsection><subsection id="HB6D37756E0BF48C1AE319BF47014BF03" display-inline="no-display-inline" commented="no"><enum>(b)</enum><header>Eligible entity</header><text>The term <quote>eligible entity</quote> in this section means—</text><paragraph id="H06043D00E20B4D5285C5A864DB11A2D7" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">a company that manufactures modular housing, panelized housing, or manufactured housing components;</text></paragraph><paragraph id="HD83C1A16491744159621F71464BB7467" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">a developer utilizing prefabricated housing in their projects; or</text></paragraph><paragraph id="H60989ECE90704B51801299FFCB3882C9" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">an organization supporting the prefabricated housing supply chain.</text></paragraph></subsection><subsection id="H2AA49CFBE9474D7493BC40241D595850" commented="no"><enum>(c)</enum><header>Use of amounts</header><text display-inline="yes-display-inline">Amounts awarded under this section shall be used by an eligible entity for 1 or more projects that will—</text><paragraph id="HAAF054E738844BAA944A04880585EC67" commented="no"><enum>(1)</enum><text>demonstrate the potential to increase affordable housing stock;</text></paragraph><paragraph id="H7DAED226DEFC4DF797F97F9BDC4303B6" commented="no"><enum>(2)</enum><text>utilize sustainable building practices;</text></paragraph><paragraph id="H048580EB761044A980718FD886C1D3D3" commented="no"><enum>(3)</enum><text>create jobs in the prefabricated housing sector; and </text></paragraph><paragraph id="H265DA1A72A784826BECA74A57DCC7831" commented="no"><enum>(4)</enum><text>contribute to the advancement of prefabrication technologies.</text></paragraph></subsection><subsection id="HE701765F9AFE4F2D9CED948AB8EA855E" commented="no"><enum>(d)</enum><header>Application process</header><paragraph id="H7D0B11CCD79747B5A2D653A52C31EECB" commented="no"><enum>(1)</enum><header>Submission</header><text display-inline="yes-display-inline">To be eligible to receive amounts under this section, an eligible entity shall submit an application to the Secretary, at such a time and in such a manner as the Secretary may reasonably require, that describes the scope, objectives, budget, timeline, and expected outcomes of the project for which such eligible entity shall use any amounts provided under this section. </text></paragraph><paragraph id="HA88B23E342DC4D3BA88F9241732382A7" commented="no"><enum>(2)</enum><header>Review and approval</header><text display-inline="yes-display-inline">Each application received by the Secretary shall be reviewed by a panel of experts, to be selected by the Secretary, who shall evaluate such applications on criteria including—</text><subparagraph id="HF4E6D808B1FE44A6BB4567B2CD78098F" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">innovation;</text></subparagraph><subparagraph id="H9FA6D15B7A254166AA8C1C1D461B2631" commented="no"><enum>(B)</enum><text>feasibility;</text></subparagraph><subparagraph id="H6B777C80695542DD8FA1AA29B2F83C61" commented="no"><enum>(C)</enum><text>impact on affordable housing; and</text></subparagraph><subparagraph id="H2D0C45EFF31646DDBC925468A08B7235" commented="no"><enum>(D)</enum><text>alignment with the goals of the programs under this title.</text></subparagraph></paragraph></subsection><subsection id="H928C67A407954D55A3DCECC4EFA673E8" commented="no"><enum>(e)</enum><header>Authorization of appropriations</header><paragraph id="HC6ED2F674F1C4352A1DF217ABC5B3F8F" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There is authorized to be appropriated to the Secretary $30,000,000,000 for grants under this section.</text></paragraph><paragraph id="H32F50FAF6F5747E4ADF630F40A1735A3" commented="no"><enum>(2)</enum><header>Availability of amounts</header><text display-inline="yes-display-inline">Any amounts appropriated pursuant to this subsection shall remain available for a period of 10 years. </text></paragraph></subsection><subsection id="H4473AC97498C453DBB480D3D884A6139" commented="no"><enum>(f)</enum><header>Reporting and accountability</header><paragraph id="H81C090B88B7341A594C9965A22D07D12" commented="no"><enum>(1)</enum><header>Progress reports</header><text display-inline="yes-display-inline">Each eligible entity that receives amounts under this section shall submit quarterly progress reports to the Secretary detailing the—</text><subparagraph id="HE43F10ADE221447DB25023E7E3164BB9" commented="no"><enum>(A)</enum><text>use of funds;</text></subparagraph><subparagraph id="H591EB80579B242E988D8FC9E9D535899" commented="no"><enum>(B)</enum><text>project developments; and</text></subparagraph><subparagraph id="H212BDE943F734F3E92DBFA3AC9D2EC1B" commented="no"><enum>(C)</enum><text>any challenges encountered.</text></subparagraph></paragraph><paragraph id="H78FBAF91D3484BAF98E1D07BF211E7C4" commented="no"><enum>(2)</enum><header>Audits</header><text display-inline="yes-display-inline">The Secretary shall conduct regular audits to ensure compliance with grant terms and the effective use of funds.</text></paragraph></subsection></section><section id="H7BF9131BFD9948DBA307A14391FAD4E3" section-type="section-one" commented="no" display-inline="no-display-inline"><enum>202.</enum><header>Manufactured housing tax credit</header><subsection id="HE215267C1CA84483801C6511A8449677" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart E of part IV of subchapter A of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H004B1D22A0AE4A6AABC2A7F64A6852CC"><section id="H77273F2FF8D4426B9DD6FB2004881F22" commented="no"><enum>48F.</enum><header>Manufactured housing credit</header><subsection id="H4E31F1C424D148E98EE61200575B50A1" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 46, the manufactured housing credit for any taxable year is an amount equal to 20 percent of the qualified investment for such taxable year with respect to any qualified manufactured housing project of the taxpayer. </text></subsection><subsection id="HAFB2A730D9164BAD86BECA62B960847A" commented="no"><enum>(b)</enum><header>Qualified investment</header><paragraph id="H28733682F912485488A9D9ECCE777999" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the term <quote>qualified investment</quote> means—</text><subparagraph id="HEB52FD416409487CBA5C3BE081D445DF" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to a project described in subsection (c)(1)(A), the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified housing manufacturing facility, and </text></subparagraph><subparagraph id="HACA22D97C9674AD1A7BADCAC8DFE904A" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to a project described in subsection (c)(2)(A), the sum of the following amounts which are paid or incurred by the taxpayer during the taxable year in carrying on any trade or business of the taxpayer with respect to qualified research and development:</text><clause id="H45C068AD0EE54E818CFC50A02744DF7F" commented="no"><enum>(i)</enum><text>in-house research expenses (as defined in section 41(b)(2)), and</text></clause><clause id="HB3AF872DD3F54B4AA9ECC3F1170B174B" commented="no"><enum>(ii)</enum><text>contract research expenses (as defined in section 41(b)(3)).</text></clause></subparagraph></paragraph><paragraph id="HFC77AAFC344F475CACD79CF441F2C470" commented="no"><enum>(2)</enum><header>Certain qualified progress expenditure rules made applicable</header><text display-inline="yes-display-inline">Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.</text></paragraph><paragraph id="H41F771F177BD407BBF28435D48CFE699" commented="no"><enum>(3)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount which is treated as the qualified investment for all taxable years with respect to any qualified housing manufacturing facility or qualified research and development shall not exceed the amount designated by the Secretary as eligible for the credit under this section.</text></paragraph></subsection><subsection id="H19999BAB51F648A0B102E7B5E7FC82FF" commented="no"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="H0B6E702B1DC940DCAD3E7F2300F0E7E5"><enum>(1)</enum><header>Qualified manufactured housing project</header><text display-inline="yes-display-inline">The term <quote>qualified manufactured housing project</quote> means a project, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section—</text><subparagraph id="HB3FAD2A8D68A410C995942669527EB9C" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">which equips, expands, or establishes a qualified housing manufacturing facility, or</text></subparagraph><subparagraph id="H1566839627FB4F92A09FC891CB808ADF" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">which facilitates qualified research and development. </text></subparagraph></paragraph><paragraph id="HE08B2A33BD07405B823E70759611763F" commented="no"><enum>(2)</enum><header>Qualified property</header><subparagraph id="HA0B258EDAE7D4E12A6A427A0CA4A4111" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>qualified property</quote> means property—</text><clause id="HB7FC12D4CD054EEFA2858905CDD2F694" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">which is tangible property,</text></clause><clause id="H2E602A1CA45A413BA3072128C35D0A52" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">which is—</text><subclause id="HFDF2CCC72DEE4D78A8C91B7B954A4ACE" commented="no"><enum>(I)</enum><text>constructed, reconstructed, or erected by the taxpayer, or </text></subclause><subclause id="H62339561A55D4CD5A952AAEBC8A3B720" commented="no"><enum>(II)</enum><text>acquired by the taxpayer if the original use of such property commences with the taxpayer, and</text></subclause></clause><clause id="HC466166D4E1F44119CD11CC9691129FB" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">which is integral to the operation of the qualified housing manufacturing facility.</text></clause></subparagraph><subparagraph id="HF21AE661F93F4804A7F340D0CDA1D475" commented="no"><enum>(B)</enum><header>Buildings and structural components</header><clause id="H23E0DC8775F942C786C0C4B64659F58B" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>qualified property</quote> includes any building or its structural components which otherwise satisfy the requirements under subparagraph (A).</text></clause><clause id="HC0ACB7C1CE924313A372FA56F3AB79E6" commented="no"><enum>(ii)</enum><header>Exception</header><text>Clause (i) shall not apply with respect to a building or portion of a building used for offices, administrative services, or other functions unrelated to manufacturing.</text></clause></subparagraph></paragraph><paragraph id="H479C369CB8A4431D917CD1A23FCB82AC" commented="no"><enum>(3)</enum><header>Qualified housing manufacturing facility</header><text display-inline="yes-display-inline">The term <quote>qualified housing manufacturing facility</quote> means a facility the primary purpose of which is the manufacturing of—</text><subparagraph id="H27595F6CA3A94532BC2D9E8451AB2009"><enum>(A)</enum><text>manufactured housing,</text></subparagraph><subparagraph id="H2212AFCDB4AB4484B5EA944409DDF673"><enum>(B)</enum><text>modular housing,</text></subparagraph><subparagraph id="HB1DC6F365FE54B4F8B126561F4883275"><enum>(C)</enum><text>panelized housing, or</text></subparagraph><subparagraph id="H862457F99B3741E983FEF2BD76347F1A"><enum>(D)</enum><text>prefabricated housing. </text></subparagraph></paragraph><paragraph id="HE5327119122D446598D7D694E5E73810" commented="no"><enum>(4)</enum><header>Manufactured housing, modular housing, panelized housing, prefabricated housing</header><text>The terms <quote>manufactured housing</quote>, <quote>modular housing</quote>, <quote>panelized housing</quote>, and <quote>prefabricated housing</quote> have the respective meanings given such terms in section 207 of the <quote><short-title>Prefabricated Housing and Zoning Enhancement Act of 2024</short-title></quote>. </text></paragraph><paragraph id="HBA7389FE064F4E2BB4F96446615B7150" commented="no"><enum>(5)</enum><header>Qualified research and development</header><text>The term <quote>qualified research and development</quote> means research and development activities relating to—</text><subparagraph id="H93A7132644F3499DBBFD6F572CC49495" commented="no"><enum>(A)</enum><text>new methods or materials for prefabricated housing, manufactured housing, modular housing, or panelized housing, which enhance durability, efficiency, or cost-effectiveness in manufacturing,</text></subparagraph><subparagraph id="HA8FB467F2AD74DDEA55070A998C57AFD" commented="no"><enum>(B)</enum><text>sustainable building practices and materials which reduce the environmental impact of such housing, and</text></subparagraph><subparagraph id="H45DC47830C56416299F333E150AB6857" commented="no"><enum>(C)</enum><text>the use of advanced technologies, including automation, robotics, and smart home systems, in the manufacturing process. </text></subparagraph></paragraph></subsection><subsection id="HCABCB392EAA1481388C74C2F8567B085" commented="no"><enum>(d)</enum><header>Special rules</header><paragraph id="H63BF74DC705F4139A29BD11D875044CC" commented="no"><enum>(1)</enum><header>Denial of double benefit</header><text display-inline="yes-display-inline">A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 41 or 48D. </text></paragraph><paragraph id="H046DEC11086243E18DC096C3894626C3" commented="no"><enum>(2)</enum><header>Coordination with rehabilitation credit</header><text display-inline="yes-display-inline">The qualified investment with respect to any advanced manufacturing facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)).</text></paragraph></subsection><subsection id="H6FB4193796184EBA9FE9F232B0C5AF06" commented="no"><enum>(e)</enum><header>Qualified manufactured housing investment program</header><paragraph id="H1B8A6F21C7F2426681C9879728384399" commented="no"><enum>(1)</enum><header>Establishment</header><subparagraph id="H6F2469F4785B424C89AD23E0BA8A6728" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 365 days after the date of enactment of this section, the Secretary shall establish a qualified manufactured housing investment program to consider and award certifications for qualified investments eligible for credits under this section.</text></subparagraph><subparagraph id="HA515BFE4077E4FDB84529670052BF44E" commented="no"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">The total amount of credits that may be allocated under the program shall not exceed $3,000,000,000.</text></subparagraph></paragraph><paragraph id="H17AB883736DB425C8CFF813A77681823" commented="no"><enum>(2)</enum><header>Certification</header><subparagraph id="H611FE9E08D2C498FA17215F795B404B4" commented="no"><enum>(A)</enum><header>Application period</header><text display-inline="yes-display-inline">Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 1-year period beginning on the date the Secretary establishes the program under paragraph (1).</text></subparagraph><subparagraph id="HDA449735C33E452BA92273EDAAC99C8D" commented="no"><enum>(B)</enum><header>Time to meet criteria for certification</header><text display-inline="yes-display-inline">Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met.</text></subparagraph><subparagraph id="H752B26F238C64C28AAF889F6DEF6BCE3" commented="no"><enum>(C)</enum><header>Period of issuance</header><text display-inline="yes-display-inline">An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid.</text></subparagraph></paragraph><paragraph id="HA393F2D5029A48D282DDB9E4AE045973" commented="no"><enum>(3)</enum><header>Selection criteria</header><text>In determining which projects to certify under this section, the Secretary shall—</text><subparagraph id="HFECD7A848B2A40EDBC79700C0B131E02" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">take into consideration only those projects where there is a reasonable expectation of commercial viability, and</text></subparagraph><subparagraph id="HB624E448DDA74CD5BF21B3B6A6EF583A" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">prioritize projects that—</text><clause id="HC643214DA3B24D5293433AEDCABE026B"><enum>(i)</enum><text>increase affordable housing stock, particularly for low- and moderate-income families,</text></clause><clause id="H6A8401B497934A5DAE0DF972D7DB89F7"><enum>(ii)</enum><text>incorporate advanced manufacturing technologies and innovations that improve efficiency, reduce costs, or increase the quality of manufactured housing,</text></clause><clause id="H1BD76E36BB484390A6B9C98D00F623FD"><enum>(iii)</enum><text>align with local efforts to streamline zoning and permitting processes or those that comply with new local zoning reforms,</text></clause><clause id="H602FAE6C993D4C038D70E840858A84B0"><enum>(iv)</enum><text>demonstrate the ability to make use of additional private or public funding,</text></clause><clause id="HF74A35E666EE45A39626895F83C5E479"><enum>(v)</enum><text>are ready to begin construction or implementation within a short time frame, and</text></clause><clause id="H89E44BBC17EA4DEEADCF2E33DB65592F"><enum>(vi)</enum><text display-inline="yes-display-inline">use replicable, scalable construction methods that can align with varying regional building code requirements.</text></clause></subparagraph></paragraph><paragraph id="HCA10ED3BFFA94E33A27D784C9676874A" commented="no"><enum>(4)</enum><header>Review and redistribution</header><subparagraph id="H78307613CF7B48BE8B7AF184DDF5D4C9" commented="no"><enum>(A)</enum><header>Review</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of such date.</text></subparagraph><subparagraph id="H3DBB740671C24BA8BF7260BB14C4C54C" commented="no"><enum>(B)</enum><header>Redistribution and reallocation</header><text>Rules similar to the rules of subparagraphs (B) and (C) of section 48C(d)(4) shall apply.</text></subparagraph></paragraph><paragraph id="HCD4AAA41D95A49BF977D7F88638DCBA8" commented="no"><enum>(5)</enum><header>Disclosure of allocations</header><text display-inline="yes-display-inline">The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant.</text></paragraph></subsection><subsection id="H8BB2342D54D64CCF9D0006008403FCFD"><enum>(f)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HBF64AB729D894CE7A8C18F7037DE69D2" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="HE6140646A812460A8F5A79E4EF2D7F36" commented="no"><enum>(1)</enum><text>Section 46 of such Code is amended in paragraph (6) by striking <quote>and</quote> at the end, in paragraph (7) by striking the period at the end and inserting <quote>, and</quote>, and by adding at the end the following new paragraph: </text><quoted-block style="OLC" display-inline="no-display-inline" id="H4FA2C04998534EDFBD299C8915DEE306"><paragraph id="HD5808D1B3DB94C09BBDEBBC0BAF237D6" commented="no"><enum>(8)</enum><text display-inline="yes-display-inline">the manufactured housing credit.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HE0C3CA4726404FFD88ECD94AE6CF1F97" commented="no"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1 of subtitle A of such Code is amended by adding at the end the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB5597F16B55D4DC7AF064347B2B2A809"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded" idref="H004B1D22A0AE4A6AABC2A7F64A6852CC"><toc-entry level="section" idref="H77273F2FF8D4426B9DD6FB2004881F22">Sec. 48F. Manufactured housing credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H485894E0638649ADA01DBBF7EE69D9EA" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act. </text></subsection></section><section id="H2B4CBFE583E2466B8C41BE6364F251D9" commented="no"><enum>203.</enum><header>Innovation Centers</header><subsection id="H2A91286D539B4A1CB5E4A768F5C53B46" commented="no"><enum>(a)</enum><header>Innovation Centers</header><text display-inline="yes-display-inline">The Secretary, in coordination with relevant partners as determined by the Secretary, shall establish a network of National Prefabricated Housing Technology Centers (hereafter referred to as <quote>Centers</quote>) to promote research and development in prefabrication technologies, materials, and processes.</text></subsection><subsection id="HFF88F25E540D454683BC942985312FC8" commented="no"><enum>(b)</enum><header>Goals of the Centers</header><text display-inline="yes-display-inline">The goals of the Centers shall include the following:</text><paragraph id="H13A75013BDE54CD18E936C08EA14E811" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">Developing and refining new methods and materials for prefabricated housing to enhance durability, efficiency, and cost-effectiveness.</text></paragraph><paragraph id="H8B00626FDD644B49BFB7B0C2B74FCBF6" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">Researching sustainable building practices and materials to reduce the environmental impact of prefabricated housing.</text></paragraph><paragraph id="H315E3B9A1A9A401098DF3BD88598586D" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">Investigating and implementing advanced technologies like automation, robotics, and smart home systems in the prefabricated housing manufacturing process.</text></paragraph><paragraph id="H16422A39DEEE4372A14DF8423475C993" commented="no"><enum>(4)</enum><text display-inline="yes-display-inline">Providing training programs and certifications for builders, architects, and engineers in prefabricated housing techniques and technologies.</text></paragraph><paragraph id="HA8967EE29DB24EE7AE58833E83232A75" commented="no"><enum>(5)</enum><text display-inline="yes-display-inline">Educating the public on the benefits and options available in prefabricated housing to increase acceptance and adoption.</text></paragraph><paragraph id="HAE19E33FD9924039AD867744362C1DE0" commented="no"><enum>(6)</enum><text display-inline="yes-display-inline">Funding vocational training programs and partnerships with community colleges to create a skilled workforce proficient in prefabricated and modular construction methods, including—</text><subparagraph id="H3E406780405742708F6CC9A63D0CDA4D" commented="no"><enum>(A)</enum><text>coursework on modern construction techniques;</text></subparagraph><subparagraph id="H7657D9D6B989458AACEFFB4437EDB969" commented="no"><enum>(B)</enum><text>improving safety practices; and</text></subparagraph><subparagraph id="H6F2D8E7615DC4A53A171438B13EB0498" commented="no"><enum>(C)</enum><text>the use of advanced manufacturing equipment.</text></subparagraph></paragraph><paragraph id="H11EA9AF3A86D417FBF9158863733DCF2" commented="no"><enum>(7)</enum><text display-inline="yes-display-inline">Fostering partnerships with construction companies, manufacturers, academic institutions, and government agencies to drive innovation and share knowledge.</text></paragraph><paragraph id="HC714F4C420244D4F861649ECB3D51341" commented="no"><enum>(8)</enum><text display-inline="yes-display-inline">Working with policymakers to develop and promote regulations and incentives that support the growth of the prefabricated housing industry.</text></paragraph><paragraph id="H5FB8833762844DD2B633C45DBA02074A" commented="no"><enum>(9)</enum><text display-inline="yes-display-inline">Developing and promoting industry standards and best practices to ensure high-quality, safe, and reliable prefabricated housing products.</text></paragraph><paragraph id="HB4C64FFE81BE42FEBE71B10AEF5D7C20" commented="no"><enum>(10)</enum><text display-inline="yes-display-inline">Establishing testing and certification programs to guarantee that prefabricated housing units meet or exceed regulatory and industry standards.</text></paragraph><paragraph id="H5EA288E5D8DA4B21A3C71AA6EEBA0304" commented="no"><enum>(11)</enum><text display-inline="yes-display-inline">Promoting prefabricated housing as a viable solution for affordable housing that addresses the housing shortage in various communities.</text></paragraph><paragraph id="HA61974675CE947F19C4743FB7B5583A4" commented="no"><enum>(12)</enum><text display-inline="yes-display-inline">Supporting job creation within the prefabricated housing sector through training and development programs.</text></paragraph><paragraph id="H5EA06110D3314DC6AC662BBB7978A7B7" commented="no"><enum>(13)</enum><text display-inline="yes-display-inline">Creating a central database of research, case studies, and best practices, to be accessible to industry stakeholders and the public.</text></paragraph><paragraph id="HC5D83432B8204D6CBF9171A130EDFBE1" commented="no"><enum>(14)</enum><text display-inline="yes-display-inline">Supporting startups and small businesses in the prefabricated housing sector by providing resources, mentorship, and funding opportunities.</text></paragraph><paragraph id="H2B0289C76C2045A9834FEDF6E50A2E53" commented="no"><enum>(15)</enum><text display-inline="yes-display-inline">Regularly assessing, benchmarking, and comparing the activities the center engages in with global standards to ensure it remains at the forefront of the industry.</text></paragraph><paragraph id="HB807436FEACA47039565BF7EE4795D4E" commented="no"><enum>(16)</enum><text display-inline="yes-display-inline">Supporting the use of sustainable materials and energy-efficient designs in prefabricated housing.</text></paragraph><paragraph id="HF550EF86017043F2B49E4A91D01A975A" commented="no"><enum>(17)</enum><text display-inline="yes-display-inline">Supporting the integration of resilient construction practices to ensure that prefabricated housing can withstand natural disasters and other challenges.</text></paragraph></subsection><subsection id="HD5AE7063E3D44C48B34200D95A6E6319"><enum>(c)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to the Secretary $1,000,000,000 to carry out this section.</text></subsection></section><section id="HA8430E8AE4F242F2A44C91D7F5555CD3" commented="no"><enum>204.</enum><header>Research and development grants</header><subsection id="HBF667DC18B094C07B93333D04F215B55" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall, not later than 1 year after the date of the enactment of this title, establish a grant program to provide financial assistance to eligible entities.</text></subsection><subsection id="H2CC0C73C06D8489998CE0A0818A98086" commented="no"><enum>(b)</enum><header>Eligible entity</header><text display-inline="yes-display-inline">The term <quote>eligible entity</quote> in this section means a—</text><paragraph id="H6068D8EC4CDE48A1BA3209842C945C89" commented="no"><enum>(1)</enum><text>university;</text></paragraph><paragraph id="HC444D69DF1F8472586108A179CD5338B" commented="no"><enum>(2)</enum><text>private company;</text></paragraph><paragraph id="H0AA9837F03314503AFAF3D0F2CD8342A" commented="no"><enum>(3)</enum><text>government agency; or</text></paragraph><paragraph id="HAAF4B04302FD45D08CD9C1745B5746E3" commented="no"><enum>(4)</enum><text>collaborative partnership.</text></paragraph></subsection><subsection id="H84E7BA15A3F647F4A8BB16AF00EBC7C2" commented="no"><enum>(c)</enum><header>Use of amounts</header><text display-inline="yes-display-inline">Amounts awarded under this section shall be used by an eligible entity for a project that will focus on the development of—</text><paragraph id="H41A795DC4610410383294C1FD195E697" commented="no"><enum>(1)</enum><text>new prefabrication technologies;</text></paragraph><paragraph id="HC46D0EC2C9FE4F0FB3EC361680EFA492" commented="no"><enum>(2)</enum><text>sustainable materials; or</text></paragraph><paragraph id="H15AA5F5530AE4B7A942BE6A9ECF849B1" commented="no"><enum>(3)</enum><text>advanced manufacturing techniques that enhance the quality, affordability, and environmental performance of prefabricated housing.</text></paragraph></subsection><subsection id="H7AAAD27FF2CE4740BBE4AE86175EC4FD" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Application process</header><paragraph id="HFCBCDBF0B8294F42976DAB47C6877472" commented="no"><enum>(1)</enum><header>Submission</header><text display-inline="yes-display-inline">To be eligible to receive amounts under this section, an eligible entity shall submit an application to the Secretary, at such a time and in such a manner as the Secretary may reasonably require, that describes the scope, objectives, budget, timeline, and expected outcomes of the project for which such eligible entity shall use any amounts provided under this section. </text></paragraph><paragraph id="HF274AAF7C7CD4251ACCAED5B8BC4E358" commented="no"><enum>(2)</enum><header>Review and approval</header><text display-inline="yes-display-inline">Each application received by the Secretary shall be reviewed by a panel of experts, to be selected by the Secretary, who shall evaluate such applications on criteria including—</text><subparagraph id="H17D4E2CF964C441B8D9D5C9D2399D96E" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">innovation;</text></subparagraph><subparagraph id="HA466D1CF068546AFAEB2DBF8A9DD5F80" commented="no"><enum>(B)</enum><text>feasibility;</text></subparagraph><subparagraph id="H169B861A8ABD41418649962653E454D0" commented="no"><enum>(C)</enum><text>impact on affordable housing; and</text></subparagraph><subparagraph id="HE90298D279364C329DC88DCEB5FE4A3F" commented="no"><enum>(D)</enum><text>alignment with the goals of the programs under this title.</text></subparagraph></paragraph></subsection><subsection id="HDD6644667EC74B349222F0526FD0259B" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header>Authorization of appropriations</header><paragraph id="H5EC17A9BCA7442BAB2A131100BB7E9BB" display-inline="no-display-inline" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There is authorized to be appropriated to the Secretary $1,000,000,000 for grants under this section.</text></paragraph><paragraph id="H7E5C94F6BCBF426280958633FC2ECCDF" commented="no"><enum>(2)</enum><header>Availability of amounts</header><text display-inline="yes-display-inline">Any amounts appropriated pursuant to this section shall remain available for a period of 10 years. </text></paragraph></subsection><subsection id="HD6A3EE001F15482FAF28D42A272F0F6E" commented="no"><enum>(f)</enum><header>Reporting and accountability</header><paragraph id="HFBF73A146CEB438C87CCCC87F4BB8B34" commented="no" display-inline="no-display-inline"><enum>(1)</enum><header>Progress reports</header><text display-inline="yes-display-inline">Each eligible entity that receives amounts under this section shall submit quarterly progress reports to the Secretary detailing the—</text><subparagraph id="H367137F6C6544FBD981C421748453A71" commented="no"><enum>(A)</enum><text>use of funds;</text></subparagraph><subparagraph id="H08C8928506484AAF815E01CC74E7F06D" commented="no"><enum>(B)</enum><text>project developments; and</text></subparagraph><subparagraph id="H230FB18B3D6444B48D7F91EFB926529F" commented="no"><enum>(C)</enum><text>any challenges encountered.</text></subparagraph></paragraph><paragraph id="H751F792F0DAD429BB71C7BD6DCF7F32C" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Audits</header><text display-inline="yes-display-inline">The Secretary shall conduct regular audits to ensure compliance with grant terms and the effective use of funds.</text></paragraph></subsection></section><section id="H78D8D19976DE43AA8CD53BE8E75357CD" commented="no"><enum>205.</enum><header>Technical support</header><subsection id="HC03B412C32C24D3B9ADFFE01B46E77C6" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall provide technical assistance to State and local governments with respect to—</text><paragraph id="H9FD5F32FA24940BD8C43C7B8EAE77288" commented="no"><enum>(1)</enum><text>streamlining the permitting process for prefabricated and modular housing projects;</text></paragraph><paragraph id="HB611420073F0444490BF8D7B9B148079" commented="no"><enum>(2)</enum><text>reducing bureaucratic hurdles; and</text></paragraph><paragraph id="H761F07182E614920BF8158C819DC3933" commented="no"><enum>(3)</enum><text>accelerating project timelines.</text></paragraph></subsection><subsection id="HDBE699962DF843DA9B7867263A4B7619" commented="no"><enum>(b)</enum><header>Development of model codes and processes</header><text display-inline="yes-display-inline">The Secretary shall, not later than 1 year after the date of the enactment of this section, convene a panel of expert to develop and provide technical assistance on—</text><paragraph id="HB023DCAF0ADC4533860205EBA90EE876"><enum>(1)</enum><text>a model permitting process for construction using prefabricated construction methods; and</text></paragraph><paragraph id="HD9480B73374B4840BC7D3034F320CD63"><enum>(2)</enum><text>a model building codes that support the use of prefabricated construction methods.</text></paragraph></subsection></section><section id="H2E62D687202646CC982C387ED6A908D4" commented="no"><enum>206.</enum><header>Community and affordable housing development</header><subsection id="H2FF7EEF62D624E4E9098857D3B9AEA2F" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall, not later than 1 year after the date of the enactment of this title, establish a grant program to provide financial assistance to eligible entities.</text></subsection><subsection id="HF00BC65AB9FA40E08C92D6B86898C23D" commented="no"><enum>(b)</enum><header>Eligible entity</header><text display-inline="yes-display-inline">The term <quote>eligible entity</quote> in this section means a—</text><paragraph id="H30E1B6A75EFB4AEC97A1B918A8269E53" commented="no"><enum>(1)</enum><text>nonprofit organization;</text></paragraph><paragraph id="HCE8FD99E589B4E3DACE1D5B7FDD9369B" commented="no"><enum>(2)</enum><text>local government;</text></paragraph><paragraph id="H9FA9934CDADF4657805A2B02E645B1C8" commented="no"><enum>(3)</enum><text>housing authority; or</text></paragraph><paragraph id="H28AE7492FDCE4D1AA0567C841986E57E" commented="no"><enum>(4)</enum><text>developer.</text></paragraph></subsection><subsection id="H104772D4BC1A4D5DA856EF6AB469E5CE" commented="no"><enum>(c)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts awarded under this section shall be used by an eligible entity on projects that—</text><paragraph id="HF6E9D71D36844D48BB2B9C1F9CEBF56C" commented="no"><enum>(1)</enum><text>serve low-income and moderate-income households;</text></paragraph><paragraph id="H76FBE0EE3D41424C8825D4D8BC91DD64" commented="no"><enum>(2)</enum><text>address specific community needs;</text></paragraph><paragraph id="H4056A7B8900B4A8788033AAABDD496FB" commented="no"><enum>(3)</enum><text>utilize prefabricated and modular constructions methods; and</text></paragraph><paragraph id="HFB35866772444C459A7F09BCBA6741CC"><enum>(4)</enum><text display-inline="yes-display-inline">involve communities in planning and development processes, ensuring that prefabricated housing projects meet local needs and preferences, including through conducting—</text><subparagraph id="H1F8648FB3CAF4DCEBFA498AF1550B666"><enum>(A)</enum><text>public meetings for community members to voice opinions, ask questions, and provide feedback on proposed affordable housing developments;</text></subparagraph><subparagraph id="H2E8B39DBA79547AB82E6E5EDA65AFDF1"><enum>(B)</enum><text>surveys, in multiple languages, to gather opinions and suggestions from community members about planning and development processes; and</text></subparagraph><subparagraph id="HB229B57918D64C1096B4D12BFFA3C7DC"><enum>(C)</enum><text>neighborhood walkthroughs and site visits to allow community members to see potential housing development sites and discuss concerns and suggestions.</text></subparagraph></paragraph></subsection><subsection id="HB2E94057725F4855A2ECC35E8D03DB70" commented="no"><enum>(d)</enum><header>Priority</header><text> The Secretary shall give grant priority to projects that demonstrate the potential to—</text><paragraph id="H682BACF341F24A1BA06B3ABB4FAD3B21" commented="no"><enum>(1)</enum><text>increase affordable housing stock;</text></paragraph><paragraph id="H6D6D13CBB4414DA5AB2F865F43D3297D" commented="no"><enum>(2)</enum><text>utilize sustainable building practices; and</text></paragraph><paragraph id="H5A63F6E21CE844B79582D2847B3C011E" commented="no"><enum>(3)</enum><text>create community benefits.</text></paragraph></subsection><subsection id="HB48D6732D5694A26B3781A1926F5060E" commented="no"><enum>(e)</enum><header>Application process</header><paragraph id="H0BBB3D4E7BFA4C7088C3C3F427C02966" commented="no"><enum>(1)</enum><header>Submission</header><text display-inline="yes-display-inline">To be eligible to receive amounts under this section, an eligible entity shall submit an application to the Secretary, at such a time and in such a manner as the Secretary may reasonably require, that describes the scope, objectives, budget, timeline, and expected outcomes of the project for which such eligible entity shall use any amounts provided under this section. </text></paragraph><paragraph id="H97113F85554245E796413813945E9565" commented="no"><enum>(2)</enum><header>Review and approval</header><text display-inline="yes-display-inline">Each application received by the Secretary shall be reviewed by a panel of experts, to be selected by the Secretary, who shall evaluate such applications on criteria including—</text><subparagraph id="H64002252382147978CD1D83A921589FF" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">innovation;</text></subparagraph><subparagraph id="HFD35C22C65DB45C1AB85C70E0B2CEFB9" commented="no"><enum>(B)</enum><text>feasibility;</text></subparagraph><subparagraph id="H4134991D1E3D455AB0C5DE78585017D9" commented="no"><enum>(C)</enum><text>impact on affordable housing; and</text></subparagraph><subparagraph id="HCB380762F77140EDBE17B752FDFC2596" commented="no"><enum>(D)</enum><text>alignment with the goals of the programs under this title.</text></subparagraph></paragraph></subsection><subsection id="HDE8518EE3D684A12AB8030490171CD55" commented="no"><enum>(f)</enum><header>Authorization of appropriations</header><paragraph id="H369F01AB79B34820B6EA27D11450C32A" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There is authorized to be appropriated to the Secretary $15,000,000,000 for grants under this section.</text></paragraph><paragraph id="HF4AD4A8175DD4E41817BFEFAEC6C4E59" commented="no"><enum>(2)</enum><header>Availability of amounts</header><text>Any amounts appropriated pursuant to this subsection shall remain available for a period of 10 years. </text></paragraph></subsection><subsection id="HDE04DE85667F41DCABEFD506D3F9D574" display-inline="no-display-inline" commented="no"><enum>(g)</enum><header>Reporting and accountability</header><paragraph id="HDB5B6BB1B3564DE9939D27DC5F1F44FA" commented="no"><enum>(1)</enum><header>Progress reports</header><text display-inline="yes-display-inline">Each eligible entity that receives amounts under this section shall submit quarterly progress reports to the Secretary detailing the—</text><subparagraph id="HBEF789B3ABBB4FF4BCEC3DE54C80531B" commented="no"><enum>(A)</enum><text>use of funds;</text></subparagraph><subparagraph id="H4996BFE6E09F414593FA618EA2C0B271" commented="no"><enum>(B)</enum><text>research developments; and</text></subparagraph><subparagraph id="H08F1FB9EDBB4478B8634B3B15B28B440" commented="no"><enum>(C)</enum><text>any challenges encountered.</text></subparagraph></paragraph><paragraph id="HA485A7A8E9BC40C68F1F3B42C20F6B9C" commented="no"><enum>(2)</enum><header>Audits</header><text display-inline="yes-display-inline">The Secretary shall conduct regular audits to ensure compliance with grant terms and the effective use of funds.</text></paragraph></subsection></section><section id="HEAC2AE0F8080480E8AD10201A10C5D0B" commented="no"><enum>207.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text><subsection id="H9D6DDC45120444D0ABB813712DA57C67" commented="no"><enum>(a)</enum><header>Affordable housing</header><text display-inline="yes-display-inline">The term <quote>affordable housing</quote> has the meaning of the term section 215 of title 2 in the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12745">42 U.S.C. 12745</external-xref>).</text></subsection><subsection id="HDC4DE90215E843F0B64D15CF5544194C" commented="no"><enum>(b)</enum><header>Manufactured housing</header><text display-inline="yes-display-inline">The term <quote>manufactured housing</quote> means housing that is built entirely in a factory, transported to a site, and installed on a permanent chassis.</text></subsection><subsection id="H6F100B0FA2D449F3B5BDC583165390EC" commented="no"><enum>(c)</enum><header>Modular housing</header><text display-inline="yes-display-inline">The term <quote>modular housing</quote> means housing that is built in sections in a factory setting and then transported to the construction site for assembly.</text></subsection><subsection id="H9EAE09FFB174405999594A5636EB3390" commented="no"><enum>(d)</enum><header>Panelized housing</header><text display-inline="yes-display-inline">The term <quote>panelized housing</quote> means to housing where panels, such as walls and floors, are prebuilt in a factory and then assembled on-site.</text></subsection><subsection id="H757AE3B40D034B22A62A7D097FD5A0A1" commented="no"><enum>(e)</enum><header>Prefabricated housing</header><text display-inline="yes-display-inline">The term <quote>prefabricated housing</quote> means housing that is manufactured offsite, in advance, usually in standard sections, that can be easily shipped and assembled, and includes—</text><paragraph id="H3AA0B0EDA8234DD394605E6D1C8E806E" commented="no"><enum>(1)</enum><text>modular housing;</text></paragraph><paragraph id="H8EFC2BEA464441C8978BE3F92350F2C7" commented="no"><enum>(2)</enum><text>panelized housing; and</text></paragraph><paragraph id="H9FA04F1A0C2D497CAD8F14B461E4B33E" commented="no"><enum>(3)</enum><text>manufactured housing.</text></paragraph></subsection><subsection id="H4E41934150DD4F8C9E9FFC4349CD710A" commented="no"><enum>(f)</enum><header>National Prefabricated Housing Technology Center</header><text display-inline="yes-display-inline">The term <quote>National Prefabricated Housing Technology Center</quote> means a comprehensive, multidisciplinary institution dedicated to advancing the technology, innovation, and adoption of prefabricated housing, serving as a central hub for research, development, education, and collaboration in the prefabricated housing industry.</text></subsection><subsection id="H92895B9DF5A0415ABA91398BDB637820" commented="no"><enum>(g)</enum><header>The Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of Housing and Urban Development. </text></subsection></section></title><title id="H2D5E550426C8439BBDD0FCCE5061DD04" commented="no"><enum>III</enum><header>National Building Code for affordable housing</header><section id="HE0B1D4879EBC473C8B2A198042F53401" commented="no"><enum>1.</enum><header>The National Building Code</header><subsection id="H170A0F53B2104667ACACF3A5CA8B8A5B" commented="no"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development (hereafter referred to as the <quote>Secretary</quote>) shall, in consultation with relevant Federal, State, Tribal, and local agencies not later than 3 years after date of the enactment of this section, develop a National Building Code for Affordable Housing (hereafter referred to as the <quote>Code</quote>).</text></subsection><subsection id="HB22C8247C6C349EF9188B5BB7A961122" commented="no"><enum>(b)</enum><header>Objectives</header><text display-inline="yes-display-inline">The Code to be developed under subsection (a) shall do the following:</text><paragraph id="HD27C6CDA784045F1A42E77D0DB938C29" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">Streamline the building approval process to reduce delays and costs associated with housing construction.</text></paragraph><paragraph id="H96B1392A15AD4DE298DAD1005CCAE54D" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">Promote the use of modern construction techniques and materials that enhance affordability, durability, and energy efficiency.</text></paragraph><paragraph id="H9D2BBF7278CE41A7AE8F47449270AF2A" commented="no"><enum>(3)</enum><text>Standardize building codes across States to minimize regulatory discrepancies and facilitate interstate housing development.</text></paragraph><paragraph id="H9824763F34B0487298401DC8D495B71D" commented="no"><enum>(4)</enum><text>Ensure that the building code supports the development of a diverse range of housing types, including single-family housing, multi-family units, and manufactured housing.</text></paragraph></subsection><subsection id="H3D69BA23A7B64924814400CEA11752B1" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Stakeholder input</header><text display-inline="yes-display-inline">The Secretary shall, when developing the code under subsection (a), solicit feedback from stakeholders, including—</text><paragraph id="HB29B22A405EF4701B140687C402E691A" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">State, local, and Tribal government officials;</text></paragraph><paragraph id="H946C4449CE36435DA8F20AF6ADF02A0D" commented="no"><enum>(2)</enum><text>private-sector stakeholders, such as developers, homebuilders, creditors, real estate professionals, manufacturers, and academic researchers; and</text></paragraph><paragraph id="HA106E72CCD2141678932479A22AC0F26" commented="no"><enum>(3)</enum><text>renters, advocates, and homeowners.</text></paragraph></subsection></section><section id="HCB8423FC3C234227BB3F2A33AC1B6EA2" commented="no"><enum>2.</enum><header>Grant Program Implementation</header><subsection id="H115A866FEBA7428E8BB44CC9629AE758" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall, on the date that the Code is developed under section 1, establish a grant program to incentivize the adoption of the Code by units of State and local government.</text></subsection><subsection id="HDBCCECD7137F4D93940D716C8A005328"><enum>(b)</enum><header>Authorization of appropriations</header><paragraph id="HD4489AAAB1EB4EEF845EA3951C05F565" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There is authorized to be appropriated to the Secretary $10,000,000,000 for grants under this section.</text></paragraph><paragraph id="H15108F1731F84688B80866921454F30F"><enum>(2)</enum><header>Availability of amounts</header><text display-inline="yes-display-inline">Any amounts appropriated pursuant to this subsection shall remain available for a period of 10 years. </text></paragraph></subsection></section><section id="HB731D03932EC46F4904D042F5F99A7D4" commented="no"><enum>3.</enum><header>Reporting and evaluation</header><subsection id="HB5BE8F4E133D42DFA8A669BD910DD319" commented="no"><enum>(a)</enum><header>Annual report</header><text display-inline="yes-display-inline">The Secretary shall submit an annual report to Congress on the implementation and impact of the Code, including—</text><paragraph id="H8FC2D15457BD4684BC11ECE5C96EBE09" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">the number of States and localities that have adopted the code;</text></paragraph><paragraph id="H8A3B8CFAD3654A3781122F437EDBAA1E" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">the impact of the Code on housing affordability and supply; and</text></paragraph><paragraph id="H80852DEE5D58468880921725049A2111" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">recommendations for further improvements to the Code.</text></paragraph></subsection><subsection id="H7DCA8B9AA2C14B238085809092CF33D3"><enum>(b)</enum><header>Evaluation</header><text display-inline="yes-display-inline">Not later than 5 years after the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to Congress on the effectiveness of the Code in reducing housing costs and increasing housing supply.</text></subsection></section></title><title id="HB40C5F4C908B4141BEA80D6B1B3FEE70" commented="no"><enum>IV</enum><header>Other matters</header><section id="HE6341BC7355B408F9AF3E49E1BAA6EEC" commented="no"><enum>101.</enum><header>Effective dates</header><subsection id="H66DCD0A0B6574E3D99ABCA4B95A85F1B" commented="no"><enum>(a)</enum><header>Title I</header><text display-inline="yes-display-inline">Title I shall take effect on the date of the enactment of this Act. </text></subsection><subsection id="H6BE5E2880DC34DFE876E9E742D5A4092" commented="no"><enum>(b)</enum><header>Title II</header><text display-inline="yes-display-inline">Title II shall take effect 90 days after the date of the enactment of this Act. </text></subsection><subsection id="HF6D5B9E91FAB47C1A73BA270E240EAF0" commented="no"><enum>(c)</enum><header>Title III</header><text display-inline="yes-display-inline">Title III shall take effect on the date of the enactment of this Act.</text></subsection></section><section id="HC505E72EBE924AA89E1F6020248FFEC7" commented="no"><enum>102.</enum><header>Compliance with the Davis-Bacon Act</header><text display-inline="no-display-inline">All laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by amounts provided under this Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></section></title></legis-body></bill> 

