Freedom to Build Act

The Freedom to Build Act creates a voluntary designation for local governments that adopt specific reforms to reduce barriers to housing construction. To qualify, a locality must either implement at least three reforms in each of three categories - such as allowing modern building methods, setting strict permit timelines, and eliminating rent control - or demonstrate sustained growth in its housing supply relative to local affordability. The Department of Housing and Urban Development will maintain a public list of these designated areas and review the required reforms every five years. Localities that lose their designation due to reversing reforms or failing supply targets receive a 180-day grace period to correct the issue before revocation. Additionally, the bill directs the Department to prioritize these designated communities when awarding competitive federal grants for housing and community development projects.