H.R. 5591: Revitalizing Empty Structures Into Desirable Environments Act

This bill, known as the Revitalizing Empty Structures Into Desirable Environments Act (or RESIDE Act), aims to create a pilot program focused on converting vacant and abandoned buildings into attainable housing. The bill establishes a structured approach involving grants awarded to eligible entities for the purpose of this transformation. Here are the key components of the bill:

Blighted Building to Housing Conversion Program

• Definitions:
  • Attainable housing: Housing that is affordable for households earning up to 120% of the area median income, with specific affordability targets for lower-income groups.
  • Converted housing unit: A housing unit created using a grant provided under this program.
  • Covered grant: A grant awarded under the pilot program for the conversion of buildings.
  • Eligible entity: Jurisdictions approved to receive funding under existing housing laws.
  • Vacant and abandoned building: A property previously for commercial use that is unsafe and unmaintained, as determined by inspections or legal status.
• Grant Program:
  • From 2027 to 2031, if funding exceeds $1.35 billion for annual housing initiatives, up to $100 million can be allocated for this pilot program.
  • Grants will be competitive and will focus on converting designated vacant and abandoned buildings.
• Grant Amounts:
  • Each grant can range from $1 million to $10 million, depending on the funding available for that fiscal year.
  • If less than $100 million is available, the Secretary will aim to distribute as many grants as possible.
• Priority for Grants: Eligible entities that meet criteria for economic distress, are located in qualified opportunity zones, have a comprehensive housing strategy, or have reduced regulatory barriers will be prioritized for grant funding.
• Use of Funds: Grants can be utilized for a variety of purposes including:
  • Property acquisition
  • Demolition of unsafe structures
  • Health hazard remediation
  • Site preparation for construction
  • Renovation or rehabilitation of existing structures
  • Establishing or expanding community land trusts
• Compliance and Reporting:
  • Funds must comply with existing requirements related to rental and sales governed by other housing programs.
  • The Secretary has the authority to waive certain requirements unless they relate to fair housing or environmental standards.
  • A study will be conducted after the pilot program concludes to assess its effects on local tax bases, affordable housing access, homeownership rates, and blight removal.

Relevant Companies

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