H.R. 855

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 855 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 855

To establish an Office of Housing Innovation in the Department of 
Housing and Urban Development to assist in exploring and developing new 
approaches for increasing and diversifying the supply of housing and 
for meeting the challenges of housing shortages, housing affordability, 
and traffic congestion, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

January 31, 2025

Mr. DeSaulnier introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To establish an Office of Housing Innovation in the Department of 
Housing and Urban Development to assist in exploring and developing new 
approaches for increasing and diversifying the supply of housing and 
for meeting the challenges of housing shortages, housing affordability, 
and traffic congestion, 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 ``Housing Innovation Act''.

SEC. 2. FINDINGS.

The Congress finds that--
(1) housing should be considered a critical component of 
our national infrastructure;
(2) existing shortages of affordable housing options in 
many regions are contributing to long commutes, financial 
stress, environmental pollution, and public health risk;
(3) new approaches in the planning, design, and 
construction of housing need to be explored for diversifying 
housing options available to the workforce; and
(4) greater coordination of existing Federal resources 
across agencies could significantly expand and diversify the 
supply of housing.

SEC. 3. OFFICE OF HOUSING INNOVATION; ASSISTANT SECRETARY.

(a) Assistant Secretary for Housing Innovation.--Section 4(a) of 
the Department of Housing and Urban Development Act (42 U.S.C. 3533(a)) 
is amended--
(1) in paragraph (1), by striking ``7 Assistant 
Secretaries'' and inserting ``9 Assistant Secretaries''; and
(2) by adding at the end the following new subsection:
``(i) Office of Housing Innovation.--
``(1) Assistant secretary.--There shall be in the 
Department an Assistant Secretary for Housing Innovation, who 
shall be appointed by the President.
``(2) Establishment.--There is established in the 
Department the Office of Housing Innovation, which shall be 
headed by the Assistant Secretary for Housing Innovation.
``(3) Functions.--The Assistant Secretary of Housing 
Innovation shall have primary responsibility within the 
Department for--
``(A) accumulating and disseminating information 
regarding innovative practices and successful case 
studies of new approaches for increasing and 
diversifying the supply of housing, especially in urban 
metropolitan regions and surrounding rural regions that 
are facing challenges of housing shortages, housing 
affordability, and traffic congestion;
``(B) carrying out activities, including 
administering the grant programs under the Housing 
Innovation Act, to encourage partnerships in exploring 
and developing innovative solutions to the challenges 
to housing supply referred to in subparagraph (A);
``(C) coordinating with other offices within the 
Department, including the Office of Housing, the Office 
of Policy Development and Research, and the Office of 
Community Planning and Development, and other Federal 
agencies, including the Department of Transportation, 
to recommend policies that address workforce housing 
needs; and
``(D) providing technical assistance to local 
governments in undertaking or preparing for planning 
and policy reforms to increase housing units and 
housing supply diversity.
``(4) Detailees.--The Secretary shall ensure that the staff 
of the Office of Housing Innovation includes, at all times--
``(A) two detailees from the Department of 
Transportation, who shall include--
``(i) one having expertise in transit 
issues or active transportation issues, or 
both; and
``(ii) one from the Build America Bureau 
having expertise on the Transportation 
Infrastructure Finance and Innovation Act 
(TIFIA) program and the Railroad Rehabilitation 
and Improvement Financing (RRIF) program;
``(B) one detailee from the Environmental 
Protection Agency having expertise on the public health 
impacts of housing and community development; and
``(C) one detailee from the Department of Energy 
having expertise on renewable energy and energy 
efficiency upgrades for low- and moderate-income 
communities.
The Secretary shall consult with the heads of the agencies 
referred to in this paragraph to provide for such details and 
such details shall be made on a reimbursable basis.''.
(b) Amendments to Title 5, United States Code.--
(1) Positions at level iv of executive schedule.--Section 
5315 of title 5, United States Code, is amended in the 
undesignated item relating to Assistant Secretaries of Housing 
and Urban Development by striking ``(8)'' and inserting 
``(9)''.
(c) Conforming Amendment.--Paragraph (1) of section 4(a) of the 
Department of Housing and Urban Development Act (42 U.S.C. 3533(a)(1)) 
is amended by striking ``7'' and inserting ``8''.
(d) Authorization of Appropriations.--There is authorized to be 
appropriated for necessary salaries and expenses of the Office of 
Housing Innovation of the Department of Housing and Urban Development 
$50,000,000 for fiscal year 2026 and each fiscal year thereafter.

SEC. 4. GRANTS FOR LOCAL PLANNING FOR HOUSING.

(a) Authority.--The Secretary of Housing and Urban Development (in 
this Act referred to as the ``Secretary''), acting through the 
Assistant Secretary of Housing Innovation, shall carry out a program to 
make grants under this section to eligible localities for undertaking 
planning efforts and associated regulatory reforms that address the 
housing needs of such areas.
(b) Eligible Localities.--For purposes of this section, the term 
``eligible locality'' means a unit of general local government that is 
located within an urbanized area, as such term is defined by the United 
States Census Bureau of the Department of Commerce.
(c) Goals.--Local plans developed using amounts from grants under 
this section shall address all of the following goals:
(1) Increasing the supply of housing units within the 
jurisdiction of the grantee or within certain defined areas 
within such jurisdiction, including neighborhoods around 
existing or planned transit facilities and job centers.
(2) Improving the affordability of the housing supply 
within the jurisdiction of the grantee or within certain 
defined areas within such jurisdiction, including neighborhoods 
around existing or planned transit facilities and job centers.
(3) Diversifying the housing supply within the jurisdiction 
of the grantee or within certain defined areas within such 
jurisdiction to include more multifamily housing options or 
newer and less common forms of housing, such as multifamily 
housing focused on smaller private spaces and more shared 
amenities, micro-unit housing, housing developments that 
incorporate co-working spaces, and housing for students.
(4) Improving commute times to job sites, reducing 
congestion, or reducing vehicle miles traveled within the 
region in which the locality is located.
(d) Use.--The Secretary shall ensure that amounts from a grant 
under this section shall be used only for costs associated with a 
housing planning process that addresses the goals in subsection (c), 
including public outreach, community meetings, preparation of planning 
documents, and research and studies in support of such planning 
efforts.
(e) Selection.--The Secretary shall award grants to eligible 
localities submitting applications under subsection (g) that are 
selected to receive grants under a competition based on criteria 
established by the Secretary, which shall include the following 
criteria:
(1) The extent to which the eligible locality outlines a 
planning process that will facilitate progress toward the goals 
under subsection (c), including the potential changes or 
updates to local policies and regulations (such as zoning 
ordinances, parking requirements, general plans, and specific 
plans) that such a planning process will aim to affect.
(2) The extent to which the eligible locality demonstrates 
how the planning process will address the needs of the 
metropolitan region within which the eligible locality is 
located by providing housing for the existing and projected 
workforce demand.
(3) The extent to which the eligible locality provides 
details of the planning actions it intends to take, including 
public outreach activities and actions for consideration for 
formal policy adoption of planning elements and 
recommendations.
(4) The extent to which the eligible locality specifies a 
timeline for completion of its planning process, including 
potential dates for consideration for formal policy adoption by 
the local governing body.
(5) The extent to which the eligible locality demonstrates 
collaboration with regional planning efforts and coordination 
with the relevant metropolitan planning organization that 
manages regional planning for the area within which the 
locality is located.
(f) Limitation on Amount.--A grant under this section for an 
eligible locality may not exceed $2,000,000.
(g) Applications.--The Secretary shall provide for eligible 
localities to submit applications to the Secretary for grants under 
this section, which shall contain such information as the Secretary may 
require.

SEC. 5. GRANTS FOR RESEARCH AND PILOT PROJECTS.

(a) Authority.--The Secretary, acting through the Assistant 
Secretary of Housing Innovation, shall carry out a program to make 
grants under this section to eligible partnerships for the purposes of 
carrying out research and pilot studies to support, inform, and advise 
local governments on their plans for new housing and community 
development.
(b) Eligible Partnerships.--For purposes of this section, the term 
``eligible partnership'' means a partnership of entities and 
institutions that includes at least one of the following entities:
(1) A unit of local government.
(2) A college, university, or other research institution.
(3) A nonprofit organization.
(c) Use.--Amounts from a grant under this section may only be used 
for research and pilot studies that are designed to study and 
investigate activities and measures for improving housing and commuting 
for the workforce in a community, including--
(1) measures to improve the commuting experience between 
transit stations and homes (commonly referred to as the ``last 
mile'');
(2) programs for accommodating higher education students 
within the community;
(3) programs for facilitating home-sharing for elderly 
residents;
(4) plans and measures for integrating business and 
commercial activity with residential neighborhoods;
(5) plans and measures for increasing transportation 
options improving mobility within residential neighborhoods;
(6) programs for learning and disseminating information 
about modular building techniques and other approaches to 
reducing housing construction costs;
(7) plans or programs for improving public health through 
changes in the built environment, such as safer streets that 
are more conducive and welcoming to pedestrian activity;
(8) measures to evaluate the impact of housing development 
in the community on the long-term social mobility and economic 
prospects of residents; and
(9) such other measures, plans, and activities as 
applicants may propose, but only if the Secretary approves such 
proposals as consistent with the goals under section 4(c).
(d) Limitations on Amount.--A grant under this section for an 
eligible partnership may not exceed the lesser of--
(1) $500,000; or
(2) in the case only of an eligible partnership that has 
previously received a grant under this section, the amount that 
the eligible partnership certifies, as the Secretary shall 
require, that the partnership will contribute from non-Federal 
sources for activities described in subsection (c) that are 
assisted with such grant amounts.

SEC. 6. GRANTS FOR EDUCATION ACTIVITIES.

(a) In General.--The Secretary, acting through the Assistant 
Secretary of Housing Innovation, shall carry out a program under this 
section to make grants to partnerships that include at least one 
academic institution for providing support for educational and 
community outreach programs that are focused on issues related to 
housing, community development, and regional planning.
(b) Limitations on Amount.--A grant under this section for a 
partnership may not exceed the lesser of--
(1) $200,000; or
(2) in the case only of a partnership that has previously 
received a grant under this section, the amount that the 
partnership certifies, as the Secretary shall require, that the 
partnership will contribute from non-Federal sources for 
educational and community outreach programs described in 
subsection (a) that are assisted with such grant amounts.

SEC. 7. GAO REVIEW.

Not later than the expiration of the 3-year period beginning on the 
date of the enactment of this Act, the Comptroller General of the 
United States shall conduct a review of grant programs under sections 
4, 5, and 6 of this Act to analyze the effectiveness of such programs 
and shall submit a report containing the results of such review and any 
conclusions resulting from such review to the Committee on Financial 
Services of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate.

SEC. 8. REGULATIONS.

The Secretary may issue any regulations necessary to carry out this 
Act.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

(a) Funding.--There are authorized to be appropriated to the 
Secretary of Housing and Urban Development to carry out this Act 
$100,000,000 for each of fiscal years 2026 through 2032 of which, in 
each fiscal year--
(1) 90 percent shall be available only for grants under 
section 4;
(2) 5 percent shall be available only for grants under 
section 5; and
(3) 5 percent shall be available only for grants under 
section 6.
(b) Source of Funding.--It is the sense of the Congress that the 
funding to carry out this Act provided pursuant to subsection (a) 
should not result in a reduction of Federal funding for any existing 
affordable housing program or programs.
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