Housing (Affordable Housing)

# Summary of "Renewing Opportunity in the American Dream to Housing Act of 2025" This comprehensive housing bill contains numerous provisions aimed at reforming and improving various housing programs across the United States. Key elements include: 1. **Housing Appraisal Standards**: Establishing new requirements for appraisals and modifying the Fair Housing Act. 2. **Rural Housing Reforms**: - Creating a permanent Housing Preservation and Revitalization Program - Modifying multifamily mortgage foreclosure procedures - Conducting a study on rural housing loans - Authorizing appropriations for staffing and IT upgrades - Establishing a Rural Community Development Initiative 3. **Moving to Work Demonstration Expansion**: - Creating a new "Economic Opportunity and Pathways to Independence Cohort" with up to 25 additional public housing agencies - Establishing specific requirements for participating agencies - Creating new reporting and oversight mechanisms 4. **Homelessness Reduction Initiatives**: - Amending the Continuum of Care program to include 2-year funding cycles - Modifying the Housing Choice Voucher program - Establishing demonstration projects to improve coordination between health care systems and housing services - Streamlining coordinated entry processes for homeless services 5. **Additional Provisions**: - Increasing administrative cost allowances for Emergency Solutions Grants - Allowing for more flexibility in income calculation verification - Creating a new rural housing voucher program - Establishing requirements for data collection and coordination The bill represents a broad effort to modernize housing programs, increase housing preservation, improve homelessness services, and provide more flexibility to local housing authorities while maintaining accountability through enhanced reporting requirements.

This bill creates two key programs to expand affordable rental housing on property owned by faith-based organizations and institutions of higher education. It provides $25 million in fiscal year 2026 for technical assistance to help these groups understand how to develop or preserve affordable housing (renting at or below 30% of household income), and $50 million annually from 2026-2031 for competitive challenge grants to local governments that remove barriers to such housing. The grants specifically target housing for households at or below 60% of area median income, homeless individuals/families (including veterans), people with disabilities, and intergenerational families. These programs directly affect faith-based groups, schools, and local governments seeking to increase affordable housing supply on their owned properties.

HR 4717 creates a refundable tax credit of up to 10% of a home's purchase price (capped at $15,000) for first-time homebuyers purchasing a principal residence in the United States. The credit is subject to limitations based on modified adjusted gross income (phased out if income exceeds 150% of the area median income) and home price relative to area median purchase prices in the buyer's location. Homebuyers must meet age requirements (at least 18 years old), not have owned a home in the past three years, and purchase with a federally backed mortgage. The credit is subject to a four-year recapture period if the home is sold within that timeframe, and taxpayers may transfer the credit to their mortgage lender as a down payment or closing cost assistance.

HR 2064 establishes a federal grant program through HUD to provide up to $30,000 in assistance per household for first-time homebuyers purchasing qualifying homes. The program helps low-to-moderate income individuals (earning ≤120% of local median income, or 150% in high-cost areas) cover down payments, closing costs, or home modifications needed for occupancy. Recipients must live in the home as a primary residence for 5 years; failure to do so requires partial repayment proportional to non-occupancy. The bill authorizes $6.7 billion annually (2026-2030), reserves 3% for tribes, and excludes assistance from federal taxation.

HR 5105, the UNLOCK Act, amends the Housing and Community Development Act of 1974 to expand eligibility for federal housing funds. It allows metropolitan cities, urban counties, states, local governments, insular areas, and tribal entities to use Section 106 funds for constructing new residential housing for low- and moderate-income residents, with or without nonprofit partnerships. The key change adds a new funding category (paragraph 27) to existing housing programs, streamlining access to resources for affordable housing projects. This bill directly affects local governments and tribal entities seeking to build or support affordable housing without requiring mandatory nonprofit involvement.

The Housing Stability for Dreamers Act prevents federal housing programs from denying mortgage insurance or loans to individuals based on their DACA (Deferred Action for Childhood Arrivals) status. It amends key housing laws - including the National Housing Act, Rural Housing Service programs, Fannie Mae, Freddie Mac, and VA loans - to prohibit eligibility restrictions tied to DACA status for single-family mortgages. The bill defines a "DACA recipient" as someone granted deferred action under the 2012 Department of Homeland Security memo. This directly affects DACA recipients seeking home loans through these federally backed programs, ensuring they cannot be denied based solely on immigration status.

The CONSTRUCTS Act of 2025 creates a federal grant program to fund training programs at community colleges and career schools focused on residential construction careers. It targets rural areas and underserved populations - including veterans, low-income individuals, and groups with historically low representation in construction - to develop skills in trades like carpentry, plumbing, electrical work, and HVAC. Grants, totaling $20 million annually from 2026-2030, require flexible scheduling, partnerships with construction employers, and plans to increase affordable housing supply through workforce development. The bill directly affects community colleges in rural or underserved regions and their students seeking residential construction careers.

This bill requires the Secretary of Housing and Urban Development to review Federal Housing Administration (FHA) construction financing programs for barriers preventing modular home developers from participating. The review will identify issues like payment timing during construction (draw schedules) and recommend changes to simplify access. Within one year, HUD must publish a report with these findings and potential policy adjustments. If changes are recommended, HUD would then propose a new payment schedule for modular home projects through a public comment process. The bill does not immediately change programs but sets a process to address existing obstacles for developers of modular homes.

HR 3459, the Empty Lots to Housing Act, allows local transportation agencies to transfer unused government-owned land (acquired with federal transportation funds) to develop affordable housing near transit. The bill requires that 40% of units built on this land must be affordable for households earning ≤60% of the area median income, with at least 20% reserved for those earning ≤30% of the median income. Transfers to third parties are permitted only if local entities can't take the land and the deal offers greater public benefit than government sale. This directly affects low- and moderate-income families by creating new affordable housing opportunities on previously underutilized public land.

The INCREASE Housing Affordability Act creates a new tax credit for converting commercial buildings (like offices) into residential housing. Property owners who convert eligible buildings can claim a tax credit equal to 15% of qualified conversion costs, with limits of $200,000 per residential unit or $10 million per building. The bill also provides bonus credits for projects with rent-restricted units for lower-income residents (10-20% more credit) and for paying prevailing wages (15% more credit). To qualify, buildings must have been nonresidential for at least 15 years and undergo substantial conversion (with expenditures exceeding adjusted basis or $15,000).