Demonstration program for the development of workforce and affordable housing

(a)

Establishment

Not later than 1 year after the date of the enactment of this section, the Secretary of Housing and Urban Development shall establish a demonstration program to award not more than 15 grants on a competitive basis to eligible entities to develop workforce housing and affordable housing in areas within the jurisdiction of such entity where such entity has determined that the workforce is expanding significantly. (b)

Application

(1)

In general

To be eligible for a grant under this section, an eligible entity shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require. (2)

Required inclusions

(A)

In general

In an application for a grant under this subsection, an eligible entity shall include— (i)a list of existing laws, regulations, and policies effective in the jurisdiction of such entity that facilitate the development of workforce housing; and (ii)a list of proposed laws, regulations, or policies that such entity intends to adopt that will reform zoning and facilitate the development of workforce housing, and a timeline for the adoption and implementation of such law, regulations, or policies. (B)

Types of reforms

Types of laws, regulations, or policies that reform zoning and facilitate the development of workforce housing and affordable housing include— (i)upzoning, including by-right development of mixed use, higher density, and accessory dwelling units; (ii)expedited permitting with set, shortened review timelines; (iii)by-right zoning for multifamily residential development near public transit; (iv)activities that reduce barriers to placing manufactured and modular housing; (v)removal of parking minimums; and (vi)reductions of minimum lot size requirements. (c)

Priority

When awarding grants under this section, the Secretary shall give priority to eligible entities whose removal or streamlining of regulatory barriers has, as determined by the Secretary, most increased the amount of workforce housing and affordable housing in the jurisdiction of such eligible entity. (d)

Variety of geographic areas

When selecting eligible entities to receive amounts under this section, the Secretary of Housing and Urban Development shall, to the extent practicable based on the eligible entities that apply, strive to provide amounts to eligible entities in a variety of geographic areas, so that the impact of the demonstration program can be evaluated in urban, suburban, and rural areas. (e)

Use of amounts

(1)

In general

An eligible entity shall use any amounts provided under this section to finance— (A)costs associated with converting commercial space into workforce housing and affordable housing though private-public partnerships, including physical improvements, rehabilitation and development of such space; (B)costs associated with developing, rehabilitating, and physically improving workforce housing and affordable housing though private-public partnerships; (C)technical assistance for housing developers; and (D)the identification and acquisition of properties that can be used to develop new and rehabilitated workforce housing and affordable housing in high-opportunity, mixed-income neighborhoods. (2)

30 percent used for affordable housing

Each eligible entity shall ensure that not less than 30 percent of the workforce housing units created, rehabilitated or improved by such eligible entity using amounts provided under this section are affordable housing units. (f)

Term

Each eligible entity shall ensure that each workforce housing unit or affordable housing unit created, rehabilitated or improved by such eligible entity using amounts provided under this section remains a workforce housing unit or affordable housing unit for not a period of not less than 5 years and after the conclusion of such period remains in compliance with any requirements established by the Secretary for workforce housing assisted under this section. (g)

Technical assistance

The Secretary shall provide technical assistance to eligible entities that are awarded a grant under this subsection with respect to using such grant amounts in conjunction with other Federally funded housing assistance programs. (h)

Study

The Secretary shall, not later than 18 months after the Secretary provides a grant under this section, and each year thereafter that the demonstration program is active, conduct a study to examine the effectiveness of the demonstration program that includes— (1)an evaluation of the impact of the demonstration program on the timeline of approval, construction, and number of new workforce housing units; and (2)a comparison of such timelines in communities that participated in the demonstration program and communities that did not participate in the demonstration program. (i)

Use of unobligated COVID funds

(1)

In general

Not later than 30 days after the date of the enactment of this section, the Secretary of the Treasury shall identify all Covid funds and transfer 10 percent of such amounts to the Secretary to carry out this section. (2)

Availability and use

Amounts transferred under this section shall remain available until expended. (j)

Definitions

In this section: (1)

Affordable housing

The term affordable housing means housing for which the total monthly housing cost payment is not more than 30 percent of the monthly household income for a household earning not more than 80 percent of the area median income. (2)

Covid funds

The term Covid funds means amounts made available under— (A)the Coronavirus Preparedness and Response Supplemental Appropriations Act; (B)the Families First Coronavirus Response Act; (C)the CARES Act; (D)the Paycheck Protection Program and Health Care Enhancement Act; (E)the Consolidated Appropriations Act of 2021; and (F)the American Rescue Plan Act. (3)

Eligible entity

The term eligible entity means a unit of local government or a public housing agency that has can demonstrate that— (A)the workforce in its area of jurisdiction has expanded as a result of Federal investments made through the Infrastructure Investment and Jobs Act or the CHIPS and Science Act; and (B)can demonstrate that there is a housing supply shortage in its area of jurisdiction, including by showing low vacancy rates, rapid price increases, or high housing cost burdens. (4)

Public housing agency

The term public housing agency has the meaning given the term in section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a). (5)

Secretary

The term Secretary means the Secretary of Housing and Urban Development. (6)

Workforce housing

(A)

In general

The term workforce housing means— (i)housing for which the total monthly housing cost payment does not exceed 30 percent of the amount equal to 120 percent of the median income in the area, as determined by the Secretary, with appropriate adjustments for the size of the household; and (ii)housing made available for purchase at a rate that does not exceed 110 percent of the median price in the area for a comparable housing unit, as determined by the Secretary. (B)

Adjustments

The Secretary may adjust the amounts described in subparagraph (A) if the Secretary determines that such adjustments are appropriate because of unusually high or low incomes in the area.