[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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