Freedom to Build Act

Summary#

This bill would require the Secretary of Housing and Urban Development (HUD) to create a "Freedom to Build" designation for localities that voluntarily qualify. HUD must set up the program within 18 months, publish a list of designated localities, and make each designation effective for 5 years with the possibility of renewal. A locality can qualify in one of two ways: (1) adopt a set of local reforms from three categories (construction innovation, faster permitting and approvals, and limits on certain local mandates) with the Secretary setting specific required reforms by rule; or (2) meet a housing supply growth target set by HUD using an affordability-adjusted formula and public data sources. HUD must review the rules and formula at least every 5 years. HUD may revoke a designation if a locality reverses qualifying reforms or fails to meet the supply target, after providing at least 180 days to cure.

The bill also directs HUD to prioritize applicants located in or serving designated localities for HUD competitive grants related to housing development, community development, or projects that build, modify, rehabilitate, or preserve housing. A "sense of Congress" section encourages other federal agencies that run infrastructure or community development grant programs to consider designation as a positive factor.

What it means for you#

• Local officials: A locality may choose to apply for the designation by adopting HUD-defined reforms or by meeting a HUD supply-growth target. Application is voluntary. Designation lasts 5 years and can be revoked if the locality backtracks or stops meeting targets.
• Builders and developers: The bill lists possible local reforms that could affect builders, such as allowing off-site construction methods, by-right approvals for projects that meet codes and zoning, set timelines for permit decisions and inspections, and limits on certain local requirements.
• Grant applicants: HUD must give priority to applicants located in or serving designated localities for HUD competitive grants tied to housing and community development.
• Renters and property owners: The bill describes reforms that may be required of qualifying localities, including a prohibition on rent control or rent stabilization for new dwellings issued a certificate of occupancy after the date of designation (the bill text allows localities to exempt existing dwellings). Exact local effects depend on which reforms a locality adopts.

Expenses#

No publicly available information.

Proponents' View#

The bill text states that removing regulatory barriers and speeding approvals will help housing supply, make federal investments in infrastructure and development more effective, and produce greater returns on federal housing tax incentives and programs. It says the Freedom to Build designation would serve as a verifiable indicator that a community supports housing supply growth.

Opponents' View#

No publicly available information.