Housing Innovation Act

HR 855, the Housing Innovation Act, establishes a new Office of Housing Innovation within HUD, headed by a presidentially appointed Assistant Secretary. This office coordinates federal agencies to support local efforts addressing housing shortages, affordability, and transportation challenges through three grant programs: Section 4 grants ($2 million max per locality) for planning regulatory reforms in urban areas; Section 5 grants ($500,000 max) for research on innovative housing solutions like micro-units or "last-mile" transit access; and Section 6 grants ($200,000 max) for academic partnerships on housing education. The bill authorizes $100 million annually (2026-2032) for these programs, with 90% funding allocated to planning grants, and requires a GAO review after three years to assess effectiveness. It directly affects local governments, regional planners, and communities facing housing supply constraints.