Competitive grant program to support workforce housing units

(a)

Definitions

In this section: (1)

Affordable

The term affordable, with respect to a workforce housing unit, means that the total housing costs for the unit do not exceed 30 percent of the income of the buyer of the workforce housing unit. (2)

Appropriate congressional committees

The term appropriate congressional committees means— (A)the Committee on Banking, Housing, and Urban Affairs of the Senate; and (B)the Committee on Financial Services of the House of Representatives. (3)

Dwelling

The term dwelling means any building, structure, or portion thereof that is occupied as, or designed or intended for occupancy as, a residence by 1 or more individuals. (4)

Eligible entity

The term eligible entity means— (A)a State or unit of local government; (B)a nonprofit housing developer; (C)an agency or instrumentality of a State; (D)a public housing agency; (E)a community development financial institution, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702); (F)a resident-owned community; and (G)any other entity that supports housing development, as determined by the Secretary. (5)

First-time homebuyer

The term first-time homebuyer has the meaning given the term in section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704). (6)

Nonprofit housing developer

The term nonprofit housing developer means a nonprofit organization having as one of its principal purposes the creation, development, or preservation of housing, including a subsidiary of a public housing agency. (7)

Program

The term Program means the grant program established under this section. (8)

Public housing agency; State

The terms public housing agency and State have the meanings given those terms in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)). (9)

Secretary

The term Secretary means the Secretary of Housing and Urban Development. (10)

Total housing costs

The term total housing costs means mortgage principal and interest, taxes, and insurance. (11)

Workforce housing unit

The term workforce housing unit means a 1- to 4-unit dwelling— (A)that is the primary residence of the buyer; (B)in which none of the units are rented; and (C)that is affordable to buyers with incomes of not more than 100 percent of the area median income. (b)

Establishment

The Secretary shall establish a competitive grant program to award grants to eligible entities to increase the supply of affordable workforce housing units. (c)

Use of funds

A recipient of a grant under the Program shall use grant funds for the construction, preservation, or rehabilitation of workforce housing units, which shall remain affordable for a period of not less than 5 years from the sale of the workforce housing unit. (d)

Application and selection process

(1)

Application

An eligible entity desiring a grant under the Program shall submit to the Secretary an application at such time, in such manner, and containing— (A)a description of the construction, preservation, or rehabilitation projects to be supported by the grant; and (B)any additional information as the Secretary may require. (2)

Selection of grantees

(A)

In general

The Secretary shall establish criteria to award grants under the Program on a competitive basis, which may include consideration of whether— (i)the median price of workforce housing units in the area to be served by the grant is increasing; (ii)the supply of available workforce housing units in the area to be served by the grant is decreasing; and (iii)whether employers in the area to be served by the grant are struggling to recruit employees due to the lack of affordable housing options. (B)

Priority

The Secretary shall prioritize awarding grants to eligible entities that demonstrate a lack of affordable workforce housing units in the area to be served by the grant. (e)

Report to Congress

Not later than 1 year after the date of enactment of this Act, and each year thereafter, the Secretary shall submit to the appropriate congressional committees a report on the implementation of the Program, which shall include— (1)a list of grant recipients and the amount awarded to each grant recipient; (2)a description of the projects assisted using grant funds, including the number of affordable workforce housing units created, preserved, and rehabilitated under the Program; (3)a description of the households that purchased homes assisted under the Program, including the number of first-time homebuyers; and (4)any other metrics that the Secretary determines necessary. (f)

Workforce Housing Development Fund

(1)

In general

There is established in the Treasury a fund to be known as the Workforce Housing Development Fund to carry out the Program. (2)

Authorization of appropriations

There is authorized to be appropriated and deposited into the fund established under paragraph (1) such sums as may be necessary for fiscal year 2024 and each fiscal year thereafter.