H.R. 1981: Choice in Affordable Housing Act of 2025

The "Choice in Affordable Housing Act of 2025" aims to enhance the effectiveness of the Housing Choice Voucher program, which helps low-income families, elderly individuals, and persons with disabilities afford housing in the private market. The bill addresses the decline in landlord participation in the program by introducing various financial incentives and support systems to encourage more landlords to accept these vouchers, especially in neighborhoods with low poverty rates and better access to resources.

Key Provisions of the Bill

1. Incentives for Landlords

The bill proposes several financial incentives for landlords:

• One-Time Incentive Payments: Landlords who own qualifying properties (located in census tracts with less than 20% poverty and have not previously received housing assistance payments) can receive a one-time payment from public housing agencies to encourage them to enter rental contracts for voucher holders. The payment can be up to 200% of the monthly housing assistance payment for that unit.
• Security Deposit Payments: The Secretary shall assist public housing agencies in covering security deposits for tenants using vouchers, providing a substantial portion of the amount directly to landlords, enabling tenants to secure housing more easily.
• Landlord Liaison Bonus Payments: Public housing agencies can receive bonus payments if they employ or contract a dedicated liaison to support landlords. This liaison's responsibilities include outreach and education about the Housing Choice Voucher program.
• Herschel Lashkowitz Housing Partnership Fund: The bill establishes this fund to provide ongoing financial support for the aforementioned incentive payments, security deposit payments, and employer liaison bonuses, with a proposed budget of $100 million per fiscal year from 2025 to 2029.

2. Simplified Housing Quality Standards

The bill allows properties that have met inspection criteria under other housing programs (like the Low-Income Housing Tax Credit) to be considered satisfactory for the Housing Choice Voucher program, thereby streamlining the housing quality assessment process.

3. Enhanced Reporting and Monitoring

The Secretary of Housing and Urban Development (HUD) will be required to report annually on the effectiveness of the changes implemented under this Act. These reports will evaluate recruitment and retention efforts for landlords, especially in high-opportunity areas, and maintain data on the number of participating landlords and properties.

4. Use of Small Area Fair Market Rent

The bill requires HUD to utilize small area fair market rents (FMRs), determined by ZIP code rather than broader geographic areas, to better align assistance with local housing markets. This is expected to ensure that voucher holders have better access to suitable housing in diverse neighborhoods.

Objective of the Bill

The overarching goal of the legislation is to increase housing options for vulnerable populations by expanding the number of landlords willing to participate in the Housing Choice Voucher program, particularly in neighborhoods that offer enhanced opportunities for tenants.

Relevant Companies

• MA: Mastercard could be indirectly affected as increased landlord participation may lead to more financial transactions related to rents and housing payments.
• AMGN: Amgen may see impacts through potential increases in housing stability for populations that need their products, given the focus on vulnerable communities.
• LOW: Lowe's may notice changes in consumer behavior as housing stability becomes prioritized and improvements in home ownership or rentals affect home improvement sales.