S. 2460: Revitalizing Empty Structures Into Desirable Environments Act

This bill, known as the Revitalizing Empty Structures Into Desirable Environments Act, aims to establish a pilot program to convert vacant and abandoned buildings into housing that is affordable and accessible to families and individuals with low to moderate incomes. Here’s a breakdown of its main components:

Purpose

The primary goal of the Act is to create more attainable housing by repurposing properties that are no longer in use. This can potentially address housing shortages while revitalizing communities.

Definitions

• Attainable housing: Housing designated for households earning a specified percentage of the area median income, ensuring a part of the housing units is affordable for those with lower incomes.
• Converted housing unit: A housing unit created through the funding from this program.
• Covered grant: Grants provided under this pilot program to assist eligible entities in their conversions.
• Eligible entity: Jurisdictions participating under the program that meet specific qualifications.
• Vacant and abandoned building: Properties constructed for commercial use that pose safety risks and have not been maintained.

Grant Program

For the fiscal years 2027 through 2031, the Secretary of Housing and Urban Development will have the authority to allocate up to $100 million annually from excess funds of the HOME Investment Partnerships Program to this pilot program. The program will provide competitive grants to eligible entities to facilitate the conversion of vacant and abandoned buildings into attainable housing.

Grant Amounts

• The grants will range from $1 million to $10 million, depending on the availability of funds.
• If less than $100 million is available for the program in a fiscal year, the Secretary will attempt to maximize the number of grants awarded.

Grant Conditions

The legislation specifies priorities for awarding grants, which include:

• Projects in economically distressed areas.
• Developments in qualified opportunity zones as defined by tax law.
• Projects which align with community housing strategies.
• Local ordinances that reduce barriers to converting commercial buildings into housing.

Use of Funds

Grant funds can be used for various purposes related to the conversion process, which include:

• Acquisition of property.
• Demolition of existing structures.
• Remediation of health hazards.
• Site preparation for development.
• Construction, renovation, or rehabilitation of housing.
• Support for community land trusts.

Compliance and Reporting

The bill stipulates that the requirements of the existing HOME Investment Partnerships Program will apply to the rental, sale, and resale of housing units developed through this program. Additionally, the Secretary has the authority to modify certain regulatory requirements for administering grants, provided that it does not compromise fair housing and environmental standards. A study must be conducted after the program ends to assess its impact on local communities, affordable housing access, homeownership, and blight reduction.

Relevant Companies

• None found