H.R. 8171: Facilitating Accelerated Supply of Targeted Housing Act

This bill, titled the Facilitating Accelerated Supply of Targeted Housing Act (or FAST Housing Act), aims to address the growing need for workforce and affordable housing in areas experiencing significant workforce expansion. It proposes the establishment of a demonstration program by the Secretary of Housing and Urban Development (HUD) to facilitate this development. Here are the key components of the bill:

Establishment of a Grant Program

The bill requires HUD to set up a demonstration program within one year of its enactment, which would award up to 15 competitive grants to eligible entities, such as local governments or public housing agencies. These grants are intended to support the development of workforce housing and affordable housing in areas with a rapidly expanding workforce.

Application Requirements

• Eligible entities must submit an application to HUD detailing existing laws and policies that aid in workforce housing development.
• They must also propose new laws or policies that would facilitate this development and provide a timeline for implementation.

Types of Reforms for Housing Development

The proposed reforms may include:

• Upzoning to allow mixed-use and higher-density developments.
• Expedited permitting processes to shorten approval times.
• By-right zoning for multifamily projects near public transportation.
• Activities to ease the placement of manufactured or modular homes.
• Removal of parking minimum requirements.
• Reduction of minimum lot size requirements.

Grant Priority and Geographic Variety

HUD will prioritize grants for entities that demonstrate their regulatory reforms have successfully increased the availability of workforce housing. The selection process for recipients will also strive to ensure a variety of geographic locations are represented, encompassing urban, suburban, and rural areas.

Use of Grant Funds

Grant recipients must use the funds to finance:

• Conversion of commercial spaces into housing.
• Rehabilitation and physical improvements of existing housing.
• Providing technical assistance to housing developers.
• Identifying and acquiring properties suitable for housing development.

Importantly, a minimum of 30% of the units developed must be designated as affordable housing.

Housing Unit Requirements

Each housing unit created or improved with the grant funding must be maintained as workforce or affordable housing for at least five years post-construction or rehabilitation, adhering to any HUD-established requirements for those units.

Technical Assistance and Studies

HUD will offer technical assistance to grant recipients, helping them to coordinate with other federally funded housing programs. Additionally, the bill mandates that an effectiveness study of the demonstration program be conducted within 18 months of grant provision and annual thereafter. This study will evaluate the program's impact on housing approval timelines and construction rates.

Funding Sources

To implement this program, the bill proposes using 10% of unobligated COVID-19 relief funds, designated under various federal acts related to pandemic response, ensuring these amounts are available until fully spent.

Definitions of Key Terms

The bill clearly defines several terms:

• Affordable Housing: Housing costs that do not exceed 30% of the monthly income for households earning up to 80% of the area median income.
• Workforce Housing: Housing costs not exceeding 30% of 120% of the area median income.
• Eligible Entities: Local governments or public housing agencies demonstrating significant workforce expansion and housing supply shortages within their jurisdictions.

Relevant Companies

• PHM - PulteGroup may see increased demand for its housing projects due to new grants facilitating affordable housing development.
• DHI - D.R. Horton could be impacted positively as opportunities for housing construction are enhanced through this legislation.