H.R. 3952

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3952 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 3952

To authorize the Department of Housing and Urban Development to 
transform neighborhoods of extreme poverty into sustainable, mixed-
income neighborhoods with access to economic opportunities, by 
revitalizing severely distressed housing, and investing and leveraging 
investments in well-functioning services, educational opportunities, 
public assets, public transportation, and improved access to jobs, and 
for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 12, 2025

Mr. Cleaver (for himself, Mr. Lynch, Mr. Meeks, and Mr. Torres of New 
York) introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To authorize the Department of Housing and Urban Development to 
transform neighborhoods of extreme poverty into sustainable, mixed-
income neighborhoods with access to economic opportunities, by 
revitalizing severely distressed housing, and investing and leveraging 
investments in well-functioning services, educational opportunities, 
public assets, public transportation, and improved access to jobs, and 
for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Choice Neighborhoods Initiative Act 
of 2025''.

SEC. 2. DEFINITIONS.

In this Act:
(1) Affordable housing.--The term ``affordable housing'' 
includes--
(A) public housing assisted under section 9 of the 
United States Housing Act of 1937 (42 U.S.C. 1437g);
(B) assisted housing;
(C) housing assisted under an affordable housing 
program administered by the Secretary of Agriculture 
through Rural Housing Service;
(D) rental housing that utilizes tax credits under 
section 42 of the Internal Revenue Code of 1986;
(E) affordable rental housing owned, developed, or 
assisted through a State or local government or State 
housing finance agency, including State-assisted public 
housing, which is subject to a long-term affordability 
restriction requiring occupancy by low-income 
households; and
(F) private housing for low- and moderate-income 
households and for which the Secretary requires the 
owner or purchaser of the project to maintain 
affordability for not less than 30 years in accordance 
with use restrictions under regulations issued by the 
Secretary, which restrictions shall be--
(i) contained in a legally enforceable 
document recorded in the appropriate records; 
and
(ii) consistent with the long-term 
viability of the project as rental or 
homeownership housing.
(2) Applicant.--The term ``applicant'' means an eligible 
entity under section 4(a) that submits an application for a 
grant under this Act pursuant to section 7.
(3) Assisted housing.--The term ``assisted housing'' means 
rental housing assisted under--
(A) section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f);
(B) section 221(d)(3) or 236 of the National 
Housing Act (12 U.S.C. 1715l, 1715z-1);
(C) section 202 of the Housing Act of 1959 (12 
U.S.C. 1701q); or
(D) section 811 of Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 8013).
(4) Community development corporation.--The term 
``community development corporation'' has the meaning given the 
term in section 204(b) of the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1997 (12 U.S.C. 1715z-11a(b)).
(5) Critical community improvements.--The term ``critical 
community improvements'' means--
(A) development or improvement of community 
facilities to promote upward mobility, self-
sufficiency, or improved quality of life for residents 
of the neighborhood, such as construction or 
rehabilitation of parks and community gardens, 
environmental improvements, or site remediation at 
affected sites; or
(B) activities to promote economic development, 
such as development or improvement of transit, retail, 
community financial institutions, public services, 
facilities, assets, or other community resources.
(6) Elementary school; secondary school.--The terms 
``elementary school'' and ``secondary school'' have the 
meanings given those terms in section 9101 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7801).
(7) Extreme poverty.--The term ``extreme poverty'' means, 
with respect to a neighborhood, that the neighborhood--
(A) has a high percentage of residents who are--
(i) estimated to be in poverty; or
(ii) have extremely low incomes based on 
the most recent data collected by the Bureau of 
the Census; and
(B) is experiencing distress related to--
(i) per capita crime rates over 3 or more 
years that are significantly higher than the 
per capita crime rates of the city or county in 
which the neighborhood is located;
(ii) high rates of vacant, abandoned, or 
substandard homes relative to the city or 
county as a whole;
(iii) a low-performing public school; or
(iv) other such factors as determined by 
the Secretary that further the purposes of this 
Act.
(8) Families; public housing; public housing agency.--The 
terms ``families'', ``public housing'', and ``public housing 
agency'' 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) Grantee.--The term ``grantee'' means an eligible entity 
under section 4 that is awarded a grant under this Act, 
pursuant to selection under section 7.
(10) Institution of higher education.--The term 
``institution of higher education'' has the meaning given the 
term in section 102 of the Higher Education Act of 1965 (20 
U.S.C. 1002).
(11) Local government.--The term ``local government'' has 
the meaning given the term ``unit of general local government'' 
in section 102(a)(1) of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5302(a)(1)).
(12) Long-term viability.--The term ``long-term viability'' 
means, with respect to a neighborhood, that the neighborhood is 
sustainable on an economic, education, and environmental basis.
(13) Neighborhood.--The term ``neighborhood'' means an area 
that--
(A) has distinguishing characteristics;
(B) represents the geographical distribution of 
targeted populations; and
(C) is not exclusive of areas that are integrally 
related to the composition of the community.
(14) Secretary.--The term ``Secretary'' means the Secretary 
of Housing and Urban Development.
(15) Severely distressed housing.--The term ``severely 
distressed housing'' means a public or assisted housing project 
(or building in a project) that--
(A)(i) has been certified, by an engineer or 
architect licensed by a State licensing board, as 
meeting criteria for physical distress that indicate 
that the project requires major redesign, 
reconstruction, or redevelopment, or partial or total 
demolition, to correct serious deficiencies in the 
original design (including inappropriately high-
population density), deferred maintenance, physical 
deterioration or obsolescence of major systems, and 
other deficiencies in the physical plant of the 
project; and
(ii) is a significant contributing factor to the 
physical decline of and disinvestment by public and 
private entities in the surrounding neighborhood, as 
documented by evidence of non-physical distress, such 
as extreme poverty, including census data and past 
surveys of neighborhood stability conducted by an 
applicant or co-applicant or their qualified designee; 
or
(B) was a project described in subparagraph (A) 
that has been legally vacated or demolished, but for 
which the Secretary has not yet provided replacement 
housing assistance other than tenant-based assistance.
(16) Significant.--The term ``significant'' means, with 
respect to an amendment or change to a transformation plan, 
that the amendment or change--
(A) changes the use of 20 percent or more of the 
total amount of the grant provided under this Act from 
use for 1 activity to use for another;
(B) eliminates an activity that is a required 
activity that, notwithstanding the change, would 
otherwise be carried out under the plan; or
(C) significantly changes the scope, location, or 
beneficiaries of the project carried out under the 
plan.
(17) Supportive services.--The term ``supportive services'' 
includes all activities that will promote upward mobility, 
self-sufficiency, or improved quality of life, including--
(A) such activities as literacy training, remedial 
and continuing education, job training, financial 
literacy instruction, daycare, youth services, aging-
in-place, physical and mental health services, and 
other programs for which such residents demonstrate 
need;
(B) case management and service coordination 
services, including providing coordinators for the 
Family Self-Sufficiency program under section 23 of the 
United States Housing Act of 1937 (42 U.S.C. 1437u) and 
the Resident Opportunity and Supportive Services 
program under section 34 of such Act (42 U.S.C. 1437z-
6); and
(C) technical assistance to enable residents to 
access programs from other key agencies and local 
service providers in order to help residents be stably 
housed, improve outcomes for children, and enhance 
adults' capacity for self-sufficiency and economic 
security, and services for the elderly and persons with 
disabilities to maintain independence.

SEC. 3. GRANT AUTHORITY.

The Secretary may make competitive grants to eligible entities that 
submit transformation plans for eligible neighborhoods that will 
further the purposes of this Act in eligible neighborhoods.

SEC. 4. ELIGIBLE ENTITIES.

(a) Primary Applicants.--
(1) In general.--A grant under this Act may be made only to 
a local government, a public housing agency, or a nonprofit 
entity that owns a major housing project that is proposed to be 
assisted under a grant under this Act, either as a sole 
applicant or as a co-applicant with another local government or 
public housing agency or with an entity specified in subsection 
(b).
(2) Nonprofit entities.--A nonprofit entity may be a sole 
applicant under paragraph (1) only if the application has the 
support of a local government.
(b) Co-Applicants.--
(1) Community development corporations.--A community 
development corporation may, at the request of an entity 
specified in subsection (a), be a co-applicant for a grant 
under this Act.
(2) For-profit entities.--A for-profit entity that owns a 
major housing project that is proposed to be assisted under a 
grant under this Act made in fiscal year 2022 or thereafter and 
that has an established presence in the community may be a co-
applicant for a grant under this Act.
(3) Required co-applicants.--A grant under this Act may not 
be made for an application that will involve transformation of 
a major public housing project unless the public housing agency 
having jurisdiction with respect to the project is the sole 
applicant or a co-applicant for the application.
(c) Partners.--Nothing in this section may be construed to limit 
the ability of an applicant to partner with any entity in carrying out 
activities with a grant under this Act.

SEC. 5. ELIGIBLE NEIGHBORHOODS.

A grant under this Act may be made only for activities to be 
conducted in neighborhoods that have--
(1) a concentration of extreme poverty; and
(2) housing that is severely distressed housing.

SEC. 6. AUTHORIZED ACTIVITIES.

(a) In General.--Amounts from a grant under this Act may be used 
only for transformational programs and activities in accordance with a 
transformation plan approved under section 7 that will further the 
purposes of this Act.
(b) Required Activities.--Each transformation plan submitted 
pursuant to section 7 and implemented by a grantee under this Act shall 
include the following activities:
(1) The transformation of housing through rehabilitation, 
preservation, or demolition and replacement of severely 
distressed housing projects, expansion of affordable housing 
opportunities, or any combination thereof, which may 
incorporate energy-efficient design principles.
(2) The one-for-one replacement of any public and assisted 
housing units demolished or disposed of in accordance with the 
requirements under section 9.
(3) Activities that promote economic self-sufficiency of 
residents of the revitalized housing and of the surrounding 
neighborhood.
(4) Activities that preserve affordable housing in the 
neighborhood and other activities necessary to ensure that 
existing public and assisted housing residents have access to 
the benefits of the neighborhood transformation.
(5) Activities that demonstrate that each resident of 
housing assisted by the grant who is displaced by the 
transformation plan and who wishes to return to the revitalized 
on-site housing in the neighborhood or to replacement housing 
outside of the neighborhood, can return, and shall be provided 
a preference in accordance with the program requirements under 
section 8.
(6) Activities that meet the program requirements for 
replacement of housing units under section 9.
(7) Activities that meet the fair housing program 
requirements under section 10(a) and the accessibility 
requirements under section 10(b).
(8) Appropriate service coordination and supportive 
services.
(9) Resident involvement, as described in section 8, in 
planning and implementation of the transformation plan, 
including reasonable steps to help ensure meaningful 
participation for residents who, as a result of their national 
origin, are limited in their English language proficiency.
(10) Monitoring, under section 8(g), of residents relocated 
during redevelopment throughout the term of the grant or until 
full occupancy of replacement housing, whichever is completed 
later.
(11) Relocation assistance, including tenant-based rental 
assistance renewable under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f), mobility or relocation 
counseling over multiple years, reasonable moving costs, and 
security deposits.
(12) Establishment of links to local education efforts, as 
described in subsection (c)(3).
(13) Activities to comply with section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u).
(c) Eligible Activities.--Amounts from a grant under this Act may 
be used for the following activities:
(1) Construction, acquisition, or rehabilitation of 
affordable housing, which may include energy efficiency 
improvements and sustainable design features for that housing.
(2) Acquisition or disposition of residential properties, 
including properties subject to a mortgage previously insured, 
and foreclosed upon, by the Federal Housing Administration, and 
demolition.
(3) Outreach to local educators, and engaging in local 
community planning, to help increase access to educational 
opportunities, a continuum of effective community services, and 
strong family supports, and to improve the educational and life 
outcomes that have a significant benefit to residents of 
housing assisted under this Act, including children and youth 
and, as appropriate, for adult residents, including the elderly 
or persons with disabilities.
(4) Providing supportive services that have a significant 
benefit to residents of housing assisted under this Act, 
primarily focused on services described in subparagraphs (B) 
and (C) of section 2(17).
(5) Rehabilitation and physical improvement of community 
facilities that are primarily intended to facilitate the 
delivery of community and supportive services that have a 
significant benefit to residents of housing assisted by the 
grant and residents of off-site replacement housing.
(6) Work incentives designed to help low-income residents 
assisted by the housing under this Act access jobs and move 
toward self-sufficiency.
(7) Partnering with employers and for-profit and nonprofit 
organizations to create jobs and job training opportunities 
that have a significant benefit to residents of housing 
assisted under this Act.
(8) Activities that promote sustainable housing by 
incorporating principles of sustainable design and development, 
including energy efficiency.
(9) Critical community improvements undertaken at sites 
that are adjacent to, or in the immediate vicinity of, housing 
assisted under this Act.
(10) Loss reserves to protect residents of housing assisted 
by the grant and continue the project in the case of default, 
foreclosure, or any other adverse financial event.
(d) Additional Plan.--The Secretary shall require any grantee under 
this Act that will provide benefits under paragraph (3), (4), (5), or 
(7) of subsection (c) to any residents who are not living in housing 
assisted with a grant under this Act to submit to the Secretary a plan 
identifying how such services will be provided.
(e) Eligible Methods of Support.--Activities carried out with 
amounts from a grant under this Act may be carried out through--
(1) endowments or revolving loan funds; or
(2) land assembly, land banking, and other activities, 
except that no amounts made available for use under this Act 
may be used to acquire any property by means of the exercise of 
the power of eminent domain.
(f) Funding Limitations.--
(1) School buildings.--No amounts from grant under this Act 
may be used for construction or rehabilitation of an elementary 
school or secondary school or an institution of higher 
education, except that such amounts may be used to construct 
common infrastructure that is shared by such a school or 
institution and by housing assisted under this Act, or 
community facilities authorized under subsection (c)(5), but 
only if costs are shared on a pro rata basis and the grantee 
certifies, and the Secretary determines, that such use of funds 
will not promote or further segregation.
(2) Non-housing activities and supportive services.--For 
each grant under this Act, the grantee shall comply with each 
of the following requirements:
(A) Of the amount of the grant, not more than 25 
percent may be used for eligible activities under 
paragraphs (3) through (9) of subsection (c).
(B) Of the amount of the grant, not more than 5 
percent may be used for eligible activities under 
paragraphs (8) and (9) of subsection (c).
(3) Consultation.--With respect to activities assisted 
pursuant to paragraph (2), the Secretary shall consult with the 
Secretary of Labor, the Secretary of Health and Human Services, 
the Secretary of Energy, the Secretary of Transportation, the 
Secretary of Education, and the Attorney General in identifying 
funding resources that may be provided to supplement amounts 
from grants under this Act.

SEC. 7. SUBMISSION AND SELECTION OF TRANSFORMATION PLANS.

(a) Transformation Plan Requirements.--To be eligible for a grant 
under this Act, an eligible entity shall submit to the Secretary, at 
such time in accordance with procedures as the Secretary shall 
prescribe, an application in the form of a transformation plan that--
(1) demonstrates how the transformation plan will achieve 
the desired priority outcomes of transforming a distressed 
neighborhood of extreme poverty into a mixed-income 
neighborhood with high quality, safe, and affordable housing 
(including the one-for-one replacement of any public or 
assisted housing units demolished or disposed of under the 
transformation plan), economic opportunities, well-functioning 
services, public assets, access to jobs, public transportation, 
and effective education programs and public schools, including 
charter schools and other autonomous public schools;
(2) demonstrates how the required activities under section 
6(b) will be carried out, including a detailed description of 
the housing transformation activities under paragraphs (1) and 
(2) of such section;
(3) describes the other eligible activities under section 
6(c) that will be carried out in support of the housing 
transformation;
(4) defines desired outcomes of the strategy, how residents 
of housing assisted under this Act will benefit, describes the 
challenges they face, and the evidence base that informs the 
proposed strategies that will result in the desired outcomes 
for the community and residents;
(5) includes a long-term affordability plan, developed in 
collaboration with residents of the public and assisted housing 
assisted under this Act, that describes how the grantee will 
maintain affordable housing in the neighborhood over the next 
50 years or longer, including affordability provisions relating 
to dwelling units provided using assistance under the grant 
under this Act, and an agreement by the applicant to update the 
plan every 5 years during such period; and
(6) includes such other information as the Secretary shall, 
by regulation, prescribe.
(b) Selection Criteria.--The Secretary shall establish criteria for 
the award of grants under this Act, with the greatest consideration 
given to applicant and neighborhood need as identified in section 5, 
and which shall include the extent to which the transformation plan--
(1) demonstrates the ability of the plan to further the 
purposes of this Act;
(2) demonstrates inclusive local planning with input from 
local governments, housing owners and providers, educators, 
residents of housing assisted under this Act, local community 
organizations, public schools, early learning in programs, 
health service organizations, and community stakeholders in the 
development and implementation of a sustainable revitalization 
program;
(3) includes efforts to coordinate multiple funding 
resources, including public, private, and philanthropic 
funding, and emphasizes collaboration between local 
governments, early learning programs and public schools, or a 
public housing agency, or all 3;
(4) includes current data showing that the neighborhood 
targeted for revitalization is in need of and can benefit from 
the authorized activities described in section 6 and proposed 
in the transformation plan;
(5) demonstrates the capability and record of the applicant 
and the partners of the applicant for managing housing 
redevelopment or modernization projects, successfully working 
with public and assisted housing residents during the planning 
and redesign process, and meeting performance benchmarks;
(6) demonstrates that sustainable building and energy 
efficient design principles are incorporated or will be 
incorporated in the activities conducted pursuant to the plan;
(7) demonstrates that the applicant has plans to have, 
within a reasonable time, improved access to transportation, 
including public transportation, in the neighborhood that 
provides access to economic opportunities and commercial and 
public services;
(8) demonstrates that the residents of revitalized housing 
developments will have, to the extent possible, improved access 
to high-quality educational opportunities, including early 
learning and effective elementary and secondary public schools, 
in or outside of the neighborhood, where relevant;
(9) demonstrates that the transformation plan includes the 
provision of appropriate supportive services and activities, 
including those that promote economic self-sufficiency of 
residents and supportive services to continue to live 
independently, of housing assisted under the grant, and a plan 
to sustain those services;
(10) demonstrates that the transformation plan provides 
support for residents displaced as a result of the 
revitalization of the project, including assistance in 
obtaining housing in areas with low concentrations of poverty 
in a manner that does not increase racial segregation;
(11) demonstrates that sufficient housing opportunities are 
available in the neighborhood to be revitalized and in low-
poverty areas to accommodate displaced residents, in a manner 
that does not increase racial segregation;
(12) includes a well-documented assessment of the number of 
households with special needs for ongoing supportive services 
residing in the public or assisted housing properties that are 
the target of the grant and an effective plan to address those 
needs;
(13) demonstrates the compliance with the requirements of 
section 9, regarding one-for-one replacement of public and 
assisted housing units;
(14) demonstrates how the applicant will use indicators of 
housing redevelopment, neighborhood quality, resident well-
being, and other outcomes to measure success, manage program 
implementation, and engage stakeholders, consistent with 
requirements established by the Secretary;
(15) demonstrates, if feasible, phased redevelopment that 
provides for demolition and construction of dwelling units in 
phases, to limit disruptions to residents;
(16) demonstrates efforts to promote a diverse housing mix 
that includes market-rate and ownership opportunities for 
residents moving up the income scale;
(17) demonstrates that the neighborhood will improve its 
long-term viability through the revitalization of severely 
distressed housing, improved access to economic opportunities, 
improved investment and leveraging in well-functioning 
services, and improved education programs, public assets, 
public transportation and access to jobs; and
(18) demonstrates compliance with any other factors and 
priorities that further the purposes of this Act, as the 
Secretary may, by regulation, prescribe.

SEC. 8. RIGHT OF RESIDENTS TO RETURN; RELOCATION.

(a) Determination of Resident Preferences.--An applicant shall, not 
later than 30 days before submitting an application to the Secretary 
for a grant under this Act--
(1) hold a community meeting and provide information to all 
residents who occupy a dwelling unit in public housing or 
assisted housing subject to the transformation plan of--
(A) the intent of the applicant to submit an 
application for a grant under this Act;
(B) their right to return and relocation housing 
options; and
(C) all planned replacement housing units; and
(2) solicit from each resident information regarding the 
desire of the resident to return to the replacement housing 
units constructed upon the original public or assisted housing 
location, interest in moving to other neighborhoods or 
communities, or interest in retaining a voucher for rental 
assistance.
(b) Resident Involvement.--
(1) In general.--Each transformation plan assisted under 
this Act shall provide opportunities for the active involvement 
and participation of, and consultation with, residents of the 
public and assisted housing that is subject to the 
transformation plan during the planning process for the 
transformation plan, including prior to submission of the 
application, and during all phases of the planning and 
implementation, which opportunities--
(A) may include participation of members of any 
resident council or tenant organization, but may not be 
limited to those members; and
(B) shall include--
(i) all segments of the population of 
residents of the public and assisted housing 
that is subject to the revitalization plan, 
including single parent-headed households, the 
elderly, young employed and unemployed adults, 
teenage youth, and disabled persons; and
(ii) a process that provides opportunity 
for comment on specific proposals for 
redevelopment, any demolition and disposition 
involved, and any proposed significant 
amendments or changes to the transformation 
plan.
(2) Public meeting.--The Secretary may not make a grant 
under this Act to an applicant unless the applicant has 
convened and conducted a public meeting regarding the 
transformation plan, including the one-for-one replacement to 
occur under the plan, not later than 30 days before submission 
of the application for the grant under this section for the 
plan, at a time and location that is convenient for residents 
of the public and assisted housing subject to the plan.
(3) Significant amendments or changes to plan.--An 
applicant may not carry out any significant amendment or change 
to a transformation plan unless--
(A) the applicant has convened and conducted a 
public meeting regarding the significant amendment or 
change at a time and location that is convenient for 
residents of the public and assisted housing subject to 
the plan and has provided each household occupying a 
dwelling unit in the public and assisted housing with 
written notice of the meeting not less than 10 days 
before such meeting;
(B) after the meeting held under subparagraph (A), 
the applicant consults with the households occupying 
dwelling units in the public and assisted housing that 
are subject to, or to be subject to the plan, and the 
agency submits a report to the Secretary describing the 
results of the consultation; and
(C) the Secretary approves the significant 
amendment or change.
(c) Right To Return.--The Secretary may not approve a 
transformation plan under this Act unless the plan provides that each 
resident of public or assisted housing displaced by activities under 
the transformation plan who wishes to return to the on-site or off-site 
replacement housing provided under the plan may return if the 
resident--
(1) was in compliance with the lease at the time of 
departure from the housing subject to rehabilitation or 
demolition; and
(2) would be eligible, as of the time of the return, for 
occupancy under the eligibility, screening, and occupancy 
standards, policies, or practices applicable to the housing 
from which the resident was displaced, as in effect at the time 
of displacement.
(d) Relocation, Notice, Application for Vouchers, and Data.--All 
relocation activities resulting from, or that will result from, 
demolition, disposition, or both demolition and disposition, to be 
carried out under a transformation plan relating to a grant under this 
Act shall be subject to the following requirements:
(1) Uniform relocation and real property acquisition act.--
The Uniform Relocation and Real Property Acquisition Policies 
Act of 1970 (42 U.S.C. 4601 et seq.) shall apply. To the extent 
the provisions of this subsection and such Act conflict, the 
provisions that provide greater protection to residents 
displaced by the demolition, disposition, or demolition and 
disposition, shall apply.
(2) Relocation plan.--The applicant shall submit to the 
Secretary, together with the application for a grant under this 
Act, a relocation plan providing for the relocation of 
residents occupying the public or assisted housing for which 
the demolition or disposition is proposed, which shall 
include--
(A) a statement of the estimated number of vouchers 
for rental assistance under section 8 that will be 
needed for such relocation;
(B) identification of the location of the 
replacement dwelling units that will be made available 
for permanent occupancy; and
(C) a statement of whether any temporary, off-site 
relocation of any residents is necessary and a 
description of the plans for such relocation.
(3) Notice upon approval of application.--Within a 
reasonable time after notice to the applicant of the approval 
of an application for a grant under this section, the applicant 
shall provide notice in writing, in plain and non-technical 
language, to the residents of the public and assisted housing 
subject to the approved transformation plan that--
(A) states that the application and transformation 
plan has been approved;
(B) describes the process involved to relocate the 
residents, including a statement that the residents may 
not be relocated until the conditions set forth in 
section 10 have been met;
(C) provides information regarding relocation 
options; and
(D) advises residents of the availability of 
relocation counseling as required in paragraph (7).
(4) Notice before relocation.--Except in cases of a 
substantial and imminent threat to health or safety, not later 
than 90 days before the date on which residents will be 
relocated, the grantee shall provide notice in writing, in 
plain and non-technical language, to each family residing in a 
public or assisted housing project that is subject to an 
approved transformation plan, and in accordance with such 
guidelines as the Secretary may issue governing such 
notifications, that--
(A) the public or assisted housing project will be 
demolished or disposed of;
(B) the demolition of the building in which the 
family resides will not commence until each resident of 
the building is relocated; and
(C) if temporary, off-site relocation is necessary, 
each family displaced by the action shall be offered 
comparable housing--
(i) that meets housing quality standards;
(ii) that is located in an area that is 
generally not less desirable than the location 
of the housing of the displaced family, which 
shall include not less than 1 unit located in 
an area of low poverty or 1 unit located within 
the neighborhood of the original public or 
assisted housing site;
(iii) that is identified and available to 
the family; and
(iv) which shall include--
(I) tenant-based assistance, except 
that the requirement under this 
subparagraph regarding offering of 
comparable housing shall be fulfilled 
by use of tenant-based assistance only 
upon the relocation of the family into 
such housing;
(II) project-based assistance;
(III) occupancy in a unit operated 
or assisted by the public housing 
agency or the owner of the assisted 
project demolished or disposed of under 
this section, at a rental rate paid by 
the family that is comparable to the 
rental rate applicable to the unit from 
which the family is relocated; or
(IV) other comparable housing.
(5) Search period.--
(A) In general.--Notwithstanding any other 
provision of law, in the case of a household that is 
provided tenant-based assistance for relocation of the 
household under this section, the period during which 
the household may lease a dwelling unit using that 
assistance shall not be shorter in duration than the 
150-day period that begins at the time a comparable 
replacement unit is made available to the family.
(B) Extension.--If a household is unable to lease a 
dwelling unit using the assistance described in 
subparagraph (A) during the period described in that 
subparagraph, the grantee shall--
(i) extend the period during which the 
household may lease a dwelling unit using the 
assistance; or
(ii) at the request of the resident, 
provide the resident with the next available 
comparable public housing unit or comparable 
housing unit for which project-based assistance 
is provided.
(6) Payment of relocation expenses.--The grantee shall 
provide for the payment of the actual and reasonable relocation 
expenses, including security deposits, of each resident to be 
displaced and any other relocation expenses as are required by 
the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 (42 U.S.C. 4601 et seq.).
(7) Comprehensive relocation counseling.--The grantee shall 
provide all advisory programs and services as required by the 
Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 (42 U.S.C. 4601 et seq.) and counseling 
for residents who are displaced that shall--
(A) fully inform residents to be displaced of all 
relocation options, which may include relocating to 
housing in a neighborhood with a lower concentration of 
poverty than their current residence, a neighborhood 
where relocation will not increase racial segregation, 
or remaining in the current neighborhood; and
(B) include providing school options for children 
and comprehensive housing search assistance for 
households that receive a voucher for tenant-based 
assistance.
(8) Timing of demolition or disposition.--The grantee shall 
not commence demolition or complete disposition of a building 
subject to the approved transformation plan until all residents 
residing in the building are relocated.
(9) Timing of relocation.--The applicant shall not commence 
relocation before approval by the Secretary of the 
transformation plan providing for the demolition or 
disposition, unless the applicant generally relocates residents 
in accordance with this section, as determined by the 
Secretary, except in the case of a substantial and imminent 
threat to health or safety.
(e) Monitoring of Displaced Households.--
(1) Grantee responsibilities.--To facilitate compliance 
with the requirement under subsection (a) (relating to right of 
residents to return), the Secretary shall, by regulation, 
require each grantee of a grant under this section, during the 
period of the transformation plan assisted with the grant and 
until all funding under the grant has been expended--
(A) to maintain a current address of residence and 
contact information for each household affected by the 
transformation plan who was occupying a dwelling unit 
in the housing that is subject to the plan; and
(B) to provide such updated information to the 
Secretary on at least a quarterly basis.
(2) Certification.--The Secretary may not close out any 
grant made under this section before the grantee has certified 
to the Secretary that the agency has complied with subsection 
(a) (relating to right of residents to return) with respect to 
each resident displaced as a result of the transformation plan, 
including providing occupancy in a replacement dwelling unit 
for each resident who requested such a unit in accordance with 
such subsection.
(f) Preference.--A returning resident shall be provided a 
preference for occupancy of on-site or off-site replacement units 
before those units are made available for occupancy by any other 
eligible households, or the resident may choose to retain tenant-based 
voucher assistance provided under section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)) for relocation from the 
properties revitalized under a transformation plan assisted with a 
grant under this Act.
(g) Prohibition on Re-Screening.--A public housing agency or any 
other manager of on-site or off-site replacement housing shall not, 
through the application of any additional eligibility, screening, 
occupancy, or other policy or practice, prevent any person otherwise 
eligible under subsection (a) from occupying a replacement housing 
unit.

SEC. 9. ONE-FOR-ONE REPLACEMENT OF PUBLIC AND ASSISTED HOUSING DWELLING 
UNITS.

(a) One-for-One Replacement of Public or Assisted Housing Units.--
The Secretary may not approve a transformation plan that provides for 
dwelling units to be demolished or disposed of unless the plan provides 
as follows:
(1) Requirement to replace each unit.--One hundred percent 
of the public and assisted housing dwelling units and units 
described in section 2(1)(E) that are demolished or disposed of 
pursuant to the transformation plan shall be replaced with a 
newly constructed, rehabilitated, or purchased public or 
assisted housing unit or with a newly constructed, 
rehabilitated, or purchased unit (including through project-
based assistance) that is subject to requirements regarding 
eligibility for occupancy, tenant contribution toward rent, and 
long-term affordability restrictions that are consistent with 
such requirements for public and assisted housing dwelling 
units or for State units, as applicable, except that 
subparagraphs (B) and (D) of section 8(o)(13) of the United 
States Housing Act of 1936 (relating to percentage limitation 
and income mixing requirement of project-based assistance) 
shall not apply with respect to vouchers used to comply with 
the requirements of this paragraph.
(2) Other requirements.--Admission to, administration of, 
and eviction from replacement housing units that replaced 
public housing units, but that are not public housing dwelling 
units, shall be subject to the following provisions to the same 
extent as public housing dwelling units:
(A) Section 578 of the Quality Housing and Work 
Responsibility Act of 1998 (42 U.S.C. 13663; relating 
to ineligibility of dangerous sex offenders).
(B) Section 16(f) of the United States Housing Act 
of 1937 (42 U.S.C. 1437n(f); relating to ineligibility 
of certain drug offenders).
(C) Sections 20 and 21 of the United States Housing 
Act of 1937 (42 U.S.C. 1437r, 1437s; relating to 
resident management).
(D) Section 25 of the United States Housing Act of 
1937 (42 U.S.C. 1437w; relating to transfer of 
management at request of residents).
(E) Section 6(k) of the United States Housing Act 
of 1937 (42 U.S.C. 1437d(k); relating to administrative 
grievance procedure).
(F) Section 6(f) of the United States Housing Act 
of 1937 (42 U.S.C. 1437d(f); relating to housing 
quality requirements).
(G) Part 964 of title 24, Code of Federal 
Regulations (relating to tenant participation and 
opportunities).
(3) Retention of rights.--Tenants occupying a replacement 
housing unit shall have all rights provided to tenants of the 
housing from which the tenants were relocated.
(4) Size.--
(A) In general.--Replacement units shall be of 
comparable size, unless a market analysis shows a need 
for other-sized units, in which case such need shall be 
addressed.
(B) Bedrooms.--The number of bedrooms within each 
replacement unit shall be sufficient to serve families 
displaced as a result of the demolition or disposition.
(5) Location on site.--At least one-third of all 
replacement units for public and assisted housing units 
demolished shall be public or assisted housing units 
constructed within the immediate area of the original public or 
assisted housing location, unless the Secretary determines 
that--
(A) construction on the location would result in 
the violation of a consent decree; or
(B) the land on which the public and assisted 
housing is located is environmentally unsafe or 
geologically unstable.
(6) Location in the neighborhood.--Any replacement housing 
units provided in addition to dwelling units provided pursuant 
to paragraph (5) shall--
(A) be provided in areas within the neighborhood, 
except that if rebuilding the units within the 
neighborhood is not feasible, units shall be provided 
within the jurisdiction of the public housing agency--
(i) in a manner that furthers the economic 
and educational opportunities for residents; 
and
(ii) in areas offering access to public 
transportation; and
(B) have access to social, recreational, 
educational, commercial, and health facilities and 
services, including municipal services and facilities, 
that are comparable to services provided to the 
revitalized neighborhood from which residents were 
displaced.
(7) Location outside of jurisdiction.--If rebuilding 
replacement housing units within the jurisdiction, in a manner 
that complies with the requirements of clauses (i) through (iv) 
of subparagraph (A) and subparagraph (B) of paragraph (6) is 
not feasible, units may be provided outside of the jurisdiction 
of the public housing agency, but within the metropolitan area 
of such jurisdiction, provided--
(A) the grantee requests, and the public housing 
agency or local government in which such units shall be 
located, agrees to such transfer of units; and
(B) the units shall comply with the requirements of 
clauses (i) through (iv) of subparagraph (A) and 
subparagraph (B) of paragraph (6).
(b) Waiver.--
(1) Authority.--Upon the written request of an applicant 
for a grant under this Act submitted as part of the 
transformation plan pursuant to section 7, the Secretary may 
reduce the percentage applicable under subsection (a)(1) to the 
transformation plan of the applicant to not less than 90 
percent, but only if--
(A) a judgment, consent decree, or other order of a 
court limits the ability of the applicant to comply 
with such requirements; or
(B) the applicant demonstrates that there is an 
excess supply of affordable rental housing in areas of 
low poverty and provides data showing that, in the area 
surrounding the revitalized neighborhood--
(i) not less than 90 percent of vouchers 
issued under section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)) over 
the last 24 months to comparable families were 
successfully used to lease a dwelling unit 
within 120 days of issuance or, if a sufficient 
number of comparable families have not received 
vouchers, an alternative measure, as the 
Secretary shall design, is met;
(ii) existing voucher holders are widely 
dispersed geographically in areas of low 
poverty with access to public transportation, 
education, and other amenities, as determined 
by the Secretary, among the available private 
rental housing stock; and
(iii) the applicant provides a market 
analysis demonstrating that--
(I) there is a relatively high 
vacancy rate among units that would 
meet or exceed housing quality 
standards, as determined by the 
Secretary, within the market area with 
rent and utility costs not exceeding 
the applicable payment standard under 
section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 
1437f(o)); and
(II) the high vacancy rate within 
the market area is expected to continue 
for the next 5 years or longer.

SEC. 10. OTHER PROGRAM REQUIREMENTS.

(a) Fair Housing.--
(1) In general.--The demolition or disposition, relocation, 
replacement, and re-occupancy of housing units in connection 
with a grant under this Act shall be carried out in a manner 
that affirmatively furthers fair housing, as required by 
section 808(e) of the Civil Rights Act of 1968 (42 U.S.C. 
3608(e)).
(2) Marketing and outreach.--Grantees shall adopt 
affirmative marketing procedures, and require affirmative 
marketing activities of project owners and managers, which 
shall be targeted o those who are least likely to apply for the 
housing, to ensure that all persons regardless of their race, 
color, national origin, religion, sex, disability, or familial 
status are aware of the housing opportunities in each project 
funded with a grant under this Act.
(b) Accessibility Requirements.--All new construction and 
alterations of existing buildings carried out in connection with a 
grant under this Act shall comply with the requirements of the section 
504 of Rehabilitation Act of 1973 (29 U.S.C. 794), the Accessibility 
Standards for Design, Construction, and Alteration of Publicly Owned 
Residential Structures of the Department of Housing and Urban 
Development under part 40 of title 24, Code of Federal Regulations, or 
any successor regulation, the Fair Housing Act (42 U.S.C. 3601 et 
seq.), and any other requirements as determined by the Secretary.
(c) Affordability Requirement.--Amounts from a grant under this Act 
may not be used for assistance for any housing property unless the 
owner of the property assisted agrees to a period of affordability for 
the property which shall be not shorter than the period of 
affordability to which the property is already subject and remains 
subject, or 3Hi 0 years, whichever is longer.
(d) Cost Limits.--Subject to the provisions of this Act, the 
Secretary shall establish cost limits on eligible activities under this 
Act sufficient to provide for effective transformation programs.
(e) Environmental Review.--For purposes of environmental review, 
assistance and projects under this Act shall be--
(1) treated as assistance for special projects that are 
subject to section 305(c) of the Multifamily Housing Property 
Disposition Reform Act of 1994 (42 U.S.C. 3547(c)); and
(2) subject to the regulations issued by the Secretary to 
implement such section.
(f) Grantee Reporting.--The Secretary shall require grantees under 
this Act to report the sources and uses of all amounts expended and 
other information for transformation plans for the annual report of the 
Secretary to Congress or other purposes as determined by the Secretary.

SEC. 11. DEMOLITION AND DISPOSITION.

(a) Inapplicability of Public Housing Demolition and Disposition 
Requirements to Transformation Plan.--The demolition or disposition of 
severely distressed public housing pursuant to a transformation plan 
approved under this Act shall be exempt from the provisions of section 
18 of the United States Housing Act of 1937 (42 U.S.C. 1437p).
(b) Applicability of Public Housing Demolition and Disposition 
Requirements to Replacement Public Housing.--Nothing in this Act may be 
construed to exempt any replacement public housing dwelling units 
provided under a transformation plan in accordance with the 
requirements under section 8 (relating to one-for-one replacement of 
public housing dwelling units) from the provisions of section 18 of the 
United States Housing Act of 1937 (42 U.S.C. 1437p).

SEC. 12. PHASE-SPECIFIC UNDERWRITING.

To the extent that a transformation plan provides for different 
phases of activities, the Secretary may allow for the various phases of 
the plan to be underwritten on a separate basis.

SEC. 13. ADMINISTRATION BY OTHER ENTITIES.

The Secretary may require a grantee under this Act to make 
arrangements satisfactory to the Secretary for use of an entity other 
than the original grantee to carry out activities assisted under the 
transformation plan of the grantee, if--
(1) the original grantee has failed to meet performance 
benchmarks relating to implementation of the transformation 
plan; and
(2) the Secretary determines that the action will help to 
effectuate the purposes of this Act.

SEC. 14. WITHDRAWAL OF FUNDING.

If a grantee under this Act does not proceed within a reasonable 
timeframe in implementing the transformation plan of the grantee or 
does not otherwise comply with the requirements of this Act and the 
grant agreement, as determined by the Secretary, the Secretary may--
(1) withdraw any grant amounts under this Act that have not 
been obligated by the grantee; and
(2) redistribute any withdrawn amounts to 1 or more other 
eligible entities capable of proceeding expeditiously in the 
same locality in carrying out the transformation plan of the 
original grantee, or as such plan may be modified and approved 
by the Secretary, or, if that is not feasible, to 1 or more 
other applicants that have already received assistance under 
this Act.

SEC. 15. ANNUAL REPORT; PUBLIC AVAILABILITY OF GRANT INFORMATION.

(a) Annual Report.--Not less than 90 days before the conclusion of 
each fiscal year, the Secretary shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a report on the 
implementation and status of grants awarded under this Act, which shall 
include--
(1) the number, type, and cost of affordable housing units 
revitalized pursuant to this Act;
(2) the amount and type of financial assistance provided 
under and in conjunction with this Act, including a 
specification of the amount and type of assistance provided for 
educational opportunities, services, public assets, public 
transportation, and access to jobs;
(3) the impact of grants made under this Act on the 
original residents, the target neighborhoods, and the larger 
communities within which they are located;
(4) all information submitted to the Secretary pursuant to 
section 8(e)(1) by all grantees and summaries of the extent of 
compliance by grantees with the requirements under subsections 
(a) and (g) of section 8; and
(5) any information related to grantees implementation of 
the requirements under section 9 (relating to one-for-one 
replacement of public housing dwelling units) and the efforts 
of the Secretary to coordinate funding pursuant to section 
6(e)(3).
(b) Public Availability of Grant Information.--
(1) In general.--To the extent not inconsistent with any 
other provisions of law, the Secretary shall make publicly 
available through a website of the Department of Housing and 
Urban Development all documents of, or filed with, the 
Department relating to the program under this Act, including 
applications, grant agreements, plans, budgets, reports, and 
amendments to those documents.
(2) Privacy.--In carrying out this subsection, the 
Secretary shall take such actions as may be necessary to 
protect the privacy of any residents and households displaced 
from public or assisted housing as a result of a transformation 
plan assisted under a grant under this Act.

SEC. 16. FUNDING.

There are authorized to be appropriated the following amounts:
(1) Grants.--$1,000,000,000 for fiscal year 2026 and such 
sums as may be necessary in each subsequent fiscal year, for 
grants under this Act, of which, in any fiscal year--
(A) up to 10 percent of such amount authorized may 
be used for planning grants, except that in awarding 
planning grants, the Secretary may elect to base 
selection on a subset of the required provisions of 
this Act;
(B) up to 5 percent of the amount authorized may be 
used for technical assistance and program evaluation 
efforts related to grants awarded under this Act, or 
under predecessor programs; and
(C) not less than 80 percent shall be used for, or 
80 percent of the number of housing units assisted 
under this Act shall be, public housing units, subject 
to de minimis variations as may result from the grantee 
selection process.
(2) Rental assistance.--Such sums as may be necessary for 
fiscal year 2026 and each subsequent fiscal year for providing 
tenant-based assistance for relocation and for rental 
assistance under section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f) for the purposes of complying with 
section 8(c) of this Act, but not to exceed the amount of 
assistance for the number of units demolished or disposed of 
under section 8(c)(1).

SEC. 17. REGULATIONS.

Not later than 180 days after the date of enactment of this Act, 
the Secretary shall issue regulations to carry out the following 
provisions of this Act:
(1) Paragraphs (5), (7), (12), (13), and (15) of section 2.
(2) Subsections (c) and (f) of section 6.
(3) Section 9(b).
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