Strengthening Housing Supply Act

Summary#

This bill would change the Community Development Block Grant (CDBG) program rules to allow CDBG funds to pay for new construction of affordable housing. It adds a new eligible activity to section 105(a) of the Housing and Community Development Act of 1974 to authorize "the new construction of affordable housing" as defined in 42 U.S.C. 12745. It also changes the low- and moderate-income requirement in section 105(c)(3) to cover new construction as well as acquisition and rehabilitation. The change would apply only to CDBG amounts appropriated after the bill becomes law. The bill was introduced on August 29, 2025, and was referred to the House Committee on Financial Services.

What it means for you#

  • Local governments that receive CDBG funds may be able to use those funds to build new affordable housing if they meet the program's low- and moderate-income rules.
  • People seeking affordable housing could see more locally funded housing projects if jurisdictions choose to use CDBG money this way.
  • Developers and nonprofit builders could partner with CDBG grantees to build new affordable units where local officials approve such use of funds.
  • Nothing in the bill itself guarantees new construction will happen; it only changes what CDBG funds are allowed to pay for.

Expenses#

No publicly available information on estimated costs or budgetary effects. The bill amends which activities are eligible for CDBG funding but does not appropriate money. Any spending would depend on future CDBG appropriations made after the bill becomes law.

Proponents' View#

No publicly available information beyond the bill text describing the bill's purpose to authorize new construction of affordable housing under the CDBG program.

Opponents' View#

No publicly available information on specific objections or opposition to the bill in the provided materials.