S. 2361: Accelerating Home Building Act of 2025

This bill, known as the Accelerating Home Building Act of 2025, aims to address the housing supply crisis in the United States by providing grants to local governments for the development of mixed-income housing using pre-reviewed designs. Here are the key elements of the bill:

Background and Purpose

• The U.S. is experiencing a significant housing shortage, estimated at nearly 5 million units.
• A considerable percentage of households are financially burdened by housing costs, with many spending over 30% of their income on housing.
• Current regulations and permitting processes pose barriers to housing production and increase costs.
• Pre-reviewed designs are construction plans that have been pre-approved for compliance with local standards, which can help streamline the permit process.

Grants for Pre-reviewed Designs

The bill allows the Secretary of Housing and Urban Development to award grants to eligible entities, which include:

• Units of general local government
• Municipal membership organizations
• Indian tribes

These grants will be used to create designs for covered structures, which include various types of housing units such as:

• Accessory dwelling units
• Duplexes and triplexes
• Townhouses and apartment buildings

Considerations for Grant Applications

When reviewing grant applications, the Secretary will consider:

• The need for affordable housing in the applicant's area
• The availability of high-opportunity areas
• Coordination with relevant state and transportation planning authorities
• Any measures taken by the applicant to simplify housing development regulations

Special Provisions for Rural Areas

The bill mandates that at least 10% of the grant funds each year be allocated to rural areas to promote housing development in less populated regions.

Reporting and Accountability

Entities that receive grants will be required to report on:

• The effect of grant-funded activities on the availability of affordable housing
• The designs created using the grant
• The number of permits issued for these designs
• The total number of housing units produced

Information Sharing and Best Practices

The Secretary will also encourage localities to share information publicly about the pre-reviewed designs available through the grants, as well as collect and disseminate best practices for others to learn from.

Repayment Terms

If a grantee does not get the submitted designs approved within five years, they may be required to return the funds unless an extension is granted.

Funding Authorization

The bill authorizes $15 million in funding per year from 2027 to 2031 for these grants, with up to 10% of that amount designated for providing technical assistance to grant applicants and recipients.

Relevant Companies

• PHM - PulteGroup, Inc.: As a major homebuilder, PulteGroup may benefit from simplified regulations and increased housing supply due to this legislation.
• DHI - D.R. Horton, Inc.: D.R. Horton, being one of the largest homebuilders in America, could see increased business opportunities driven by expedited housing development.
• TOL - Toll Brothers, Inc.: Toll Brothers might be impacted positively by the introduction of mixed-income housing initiatives, allowing for diverse project opportunities.