The ROAD sections below will change certain program requirements for CDBG, HOME, ESG, and CDBG-DR. There are also changes to NEPA environmental review requirements for small and infill housing projects.
Section 104 requires CDBG grantees to “maintain, on a publicly accessible website, a searchable database that identifies all parcels of undeveloped land owned by the grantee.” It also creates a new eligible activity that allows grantees to fund the “creation and maintenance” of these databases.
It is not immediately clear how HUD will apply this new requirement to non-entitlement CDBG programs. COSCDA is gathering more information.
Section 204 adds a new eligible activity to allow for the construction of affordable housing within the CDBG program – “the new construction of affordable housing, within the meaning given such term under section 215 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745), and which shall not exceed 20 percent of the amounts allocated to the recipient.”
Note that there’s a cap of 20% on this activity type and that affordable housing construction must comply with the affordability requirements under section 215 of Cranston-Gonzalez.
Section 206 streamlines NEPA environmental review requirements for small and “infill” housing. It defines “infill” for the purpose of this section. The bill expands and re-classifies the level of review required for certain activities. For example, “acquisition, repair, improvement, reconstruction, or rehabilitation of public facilities” is now classified under the categorically excluded, not subject to part 50/part 58 level of NEPA review.
Section 501 reauthorizes and modernizes the HOME Investment Partnerships Program. Congress has not made any substantial changes to the HOME program since they first authorized it in 1990. This section makes many updates to HOME, including:
COSCDA is working with the HOME Coalition to produce more resources that outline what’s included in this section.
Section 503 allows ESG grantees to request a waiver of the 60% cap on emergency shelter and street outreach activities. Grantees must submit a waiver request to HUD with a justification. Waivers are only authorized for Fiscal Years 2027 – 2030, though Congress may decide to renew this waiver authorization in the future.
Section 504 authorizes the CDBG-DR program for a period of 3 years. This is the first time the program has been authorized by statute. This section also establishes an Office of Disaster Management and Resiliency within HUD. To implement the program’s authorization, HUD must publish proposed rules within 6 months of enactment, allow for a 90-day comment period, and publish final rules within one year of enactment.
COSCDA plans to work with members to develop strong comments and recommendations in response to HUD’s proposed rules. Although the program is only authorized for 3 years, Congress can choose to extend the authorization in the future.
ROAD authorizes many new pilot grant programs. State agencies would be eligible to apply for the programs in the sections below. However, Congress will need to appropriate funding for these pilot programs before HUD can award any grants.
Within 18 months of enactment, HUD must issue guidelines to “facilitate the permitting of point-access block residential buildings.” HUD can also establish a grant program for “pilot projects that evaluate, demonstrate, or validate the safety, feasibility, or cost-effectiveness of point-access block residential buildings.” States would be eligible to apply for these grants.
Section 202 authorizes the “Whole-Home Repairs Program.” The main purpose of this pilot program would be to provide grants “to eligible homeowners to implement whole-hole repairs not covered by other Federal home repair programs up to a maximum amount per unit.”
States can qualify as eligible “implementing organizations” for this program if:
Section 207 directs HUD to establish a program “to award grants on a competitive basis to eligible entities to assist planning and implementation activities associated with affordable housing, except that such grant awards may not be used for construction, alteration, or repair work.”
States are listed as eligible entities.
Section 210 establishes a sub-grant of the HOME program to award grants “to eligible entities to convert vacant and abandoned buildings into attainable housing.” If Congress funds this program, grants would range between $1 million and $10 million. HUD is provided with waiver authority to streamline requirements that make it more difficult to accomplish building conversions.
Section 304 officially authorizes the Preservation and Reinvestment for Community Enhancement (PRICE) grant program. Congress has already funded this program in the past, but it was not authorized in statute. States have received PRICE grants and will still be eligible to apply for any new funding. The program’s authorization expires after 7 years.
The sections below aim to expand Congressional oversight of HUD and to better coordinate housing programs between Federal agencies such as HUD, the Department of Agriculture (USDA), and the Department of Veterans Affairs (VA).
Section 701 requires HUD’s Secretary to testify annually before both the House and Senate. The testimony must include information about:
Section 703 updates reporting requirements for the United States Interagency Council on Homelessness (USICH). USICH must now submit an annual report to Congress and the President and testify annually before Congress if requested.
Section 801 directs HUD, the USDA, and the VA to establish an MOU to “share relevant housing-related research and market data that facilitate evidence-based policymaking.” These agencies must submit a report to Congress within 180 days (6 months) of enactment that outlines how they can better coordinate on housing projects. The report will be posted to the Federal Register for a 30-day public comment period.
Section 802 directs HUD and the USDA to establish an MOU to help streamline NEPA environmental review requirements for jointly funded projects. Within one year of enactment, the agencies must submit a report to Congress detailing their progress and recommendations for legislative / regulatory reform.
The sections below do not require anything new from state agencies, but they might be important for COSCDA members to know. Some sections will result in new HUD resources or impact grant programs (but exclude states from these impacts).
Section 107 directs HUD’s Office of Policy Development & Research (PD&R) to produce housing supply framework documents within 3 years of enactment. These documents should outline “guidelines and best practices to support production of adequate housing to meet the needs of communities and provide housing opportunities for individuals at every income level across communities.” HUD will specifically produce both State and local resources.
Section 201 allows HUD to “give additional weight to applicants with proposed activities or projects that are located in or substantially and directly benefit a community designated as a qualified opportunity zone.” This section only applies to competitive grants – it would not impact block grants, formula grants, or disaster recovery grants. However, it’s important to note for states that plan to apply for competitive pilot program funding for CoC funding.
Section 208 establishes the “Innovation Fund” and authorizes $200 million per year to carry out the program (Congress would still need to appropriate this funding). Grant funding would be awarded to applicants that have improved their “housing supply growth.” Funding can be used for the same eligible activities as the CDBG program, Local and Regional Project Assistance Program, and more.
States are not eligible to apply for Innovation Fund grants.
Section 209 authorizes a pilot grant program to “select prereviewed designs of covered structures of mixed-income housing for use in the jurisdiction of the eligible entity.” The goal is to make it easier for local governments to approve permitting for housing projects and to streamline development.
States are not considered eligible entities for the purpose of these grants.
Section 213 would direct HUD to alter a small portion of CDBG formula grants based on a new “housing growth improvement rate” calculation. With some exceptions, CDBG entitlements below the median rate would lose 10% of their allocation. Entitlements above the median would receive bonus CDBG funding. The goal is to motivate entitlement communities to pass pro-growth housing policies.
State CDBG programs are excluded from the Build Now Act and its formula alterations.