[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5938 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5938
To establish a grant program to increase the local housing supply, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 7, 2025
Mr. Cleaver (for himself and Ms. Pressley) introduced the following
bill; which was referred to the Committee on Financial Services, and in
addition to the Committees on Transportation and Infrastructure, and
Energy and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish a grant program to increase the local housing supply, 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 ``Innovation Fund Act''.
SEC. 2. INNOVATION FUND.
(a) Definitions.--In this section:
(1) Attainable housing.--The term ``attainable housing''
means housing that--
(A) serves--
(i) a majority of households with income
not greater than 80 percent of area median
income; and
(ii) households with income not greater
than 100 percent of area median income; or
(B) serves--
(i) a majority of households with income
not greater than 60 percent of area median
income; and
(ii) households with income not greater
than 120 percent of area median income.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a metropolitan city or urban county, as those
terms are defined in section 102 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302),
that has demonstrated an objective improvement in
housing supply growth, as determined by the Secretary,
whose methodology for determining such growth is
published in the Federal Register to allow for public
comment not less than 90 days before date on which the
notice of funding opportunity is made available; or
(B) a unit of general local government or Indian
tribe, as those terms are defined in section 102 of the
Housing and Community Development Act of 1974 (42
U.S.C. 5302), that has demonstrated an objective
improvement in housing supply growth, as determined by
the Secretary, whose methodology for determining such
improvement is published in the Federal Register to
allow for public comment not less than 90 days before
the date on which the notice of funding opportunity is
made available.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Establishment of a Grant Program.--
(1) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a program
to award grants on a competitive basis to eligible entities
that have increased their local housing supply.
(2) List of eligible entities.--The Secretary shall make a
list of eligible entities publicly available on the website of
the Department of Housing and Urban Development.
(3) Eligible purposes.--An eligible entity receiving a
grant under this section may use funds to--
(A) carry out any of the activities described in
section 105 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5305);
(B) carry out any of the activities permitted under
the Local and Regional Project Assistance Program
established under section 6702 of title 49, United
States Code;
(C) serve as matching funds under a State revolving
fund program related to a clean water or drinking water
program administered by the Environmental Protection
Agency in which the eligible entity is the grantee
under that program, unless otherwise determined by the
Secretary; and
(D) carry out initiatives of the eligible entity
that facilitate the expansion of the supply of
attainable housing and that supplement initiatives the
eligible entity has carried out, or is in the process
of carrying out, as specified in the application
submitted under paragraph (4).
(4) Application.--
(A) In general.--An eligible entity seeking a grant
under this section shall submit to the Secretary an
application that provides--
(i) a description of each purpose for which
the eligible entity will use the grant, and an
attestation that the grant will be used only
for 1 or more eligible purposes described in
paragraph (3);
(ii) data on characteristics of increased
housing supply during the 3-year period ending
on the date on which the application is
submitted, which may include whether such
housing--
(I) serves households at a range of
income levels; and
(II) has improved the quality and
affordability of housing in the
jurisdiction of the eligible entity;
(iii) a description of how each eligible
purpose described in clause (i) may address a
community need or advance an objective, or an
aspect of an objective, included in the
comprehensive housing affordability strategy
and community development plan of the eligible
entity under part 91 of title 24, Code of
Federal Regulations, or any successor
regulation (commonly referred to as a
``consolidated plan''); and
(iv) a description of how the eligible
entity has carried out, or is in the process of
carrying out, initiatives that facilitate the
expansion of the supply of housing.
(B) Initiatives.--Initiatives that meet the
criteria described in paragraph (3)(D) include--
(i) increasing by-right uses, including
duplex, triplex, quadplex, and multifamily
buildings, in areas of opportunity;
(ii) revising or eliminating off-street
parking requirements to reduce the cost of
housing production;
(iii) revising minimum lot size
requirements, floor area ratio requirements,
set-back requirements, building heights, and
bans or limits on construction to allow for
denser and more affordable development;
(iv) instituting incentives to promote
dense development;
(v) passing zoning overlays or other
ordinances that enable the development of
mixed-income housing;
(vi) streamlining regulatory requirements
and shortening processes, increasing code
enforcement and permitting capacity, reforming
zoning codes, or other initiatives that reduce
barriers to increasing housing supply and
affordability;
(vii) eliminating restrictions against
accessory dwelling units and expanding their
by-right use;
(viii) using local tax incentives or public
financing to promote development of attainable
housing;
(ix) streamlining environmental
regulations;
(x) eliminating unnecessary manufactured-
housing regulations and restrictions;
(xi) minimizing the impact of
overburdensome energy and water efficiency
standards on housing costs; and
(xii) other activities that reduce cost of
construction, as determined by the Secretary.
(5) Grants.--
(A) In general.--The Secretary shall make not fewer
than 25 grants on an annual basis (unless amounts
appropriated to provide grant amounts consistent with
subsection (b) are insufficient, in which case fewer
grants may be awarded), with strong consideration of
different geographical areas and a relatively even
spread of rural, suburban, and urban communities.
(B) Limitations on awards.--No grant awarded under
this paragraph may be--
(i) more than $10,000,000; or
(ii) less than $250,000.
(C) Priority.--When awarding grants under this
paragraph, the Secretary shall give priority to an
eligible entity that has--
(i) demonstrated the use of innovative
policies, interventions, or programs for
increasing housing supply, including adoption
of any of the frameworks developed under
section 203; and
(ii) demonstrated a marked improvement in
housing supply growth.
(D) Grant administration and terms.--Projects
assisted under this section for activities described in
sector 23 of the North American Industry Classification
System shall be treated as projects assisted under the
Community Development Block Grant program under title I
of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.).
(c) Rules of Construction.--Nothing in this section shall be
construed--
(1) to authorize the Secretary to mandate, supersede, or
preempt any local zoning or land use policy; or
(2) to affect the requirements of section 105(c)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12705(c)(1)).
(d) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $200,000,000 for each of fiscal years
2027 through 2031.
(2) Adjustment.--The amount authorized to be appropriated
under paragraph (1) shall be adjusted for inflation based on
the Consumer Price Index.
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