S. 4020: Housing Supply and Affordability Act

The Housing Supply and Affordability Act (S. 4020) aims to create a grant program to bolster affordable housing initiatives across various communities in the United States. Here’s a breakdown of what the bill entails:

Purpose of the Bill

The main goal of this legislation is to improve housing supply and affordability by providing funding to support planning and implementation activities related to housing. This includes creating new housing plans and strategies to address the current housing crisis.

Eligible Entities

Grants provided under this bill can be awarded to:

• States
• Insular areas (such as U.S. territories)
• Metropolitan cities
• Urban counties
• Regional planning agencies or consortia of such agencies

Definition of Housing Plans

A housing plan, as defined in the bill, must focus on:

• Increasing the availability of housing to meet demand
• Enhancing housing affordability
• Improving accessibility for individuals with disabilities
• Preserving or enhancing the quality of housing
• Reducing barriers to housing development
• Coordinating with transportation agencies

Grant Program Establishment

The bill mandates the Secretary of Housing and Urban Development to establish a competitive grant program within one year of its enactment. These grants will help eligible entities with the planning and implementation of affordable housing projects, but the funds cannot be used for construction, alterations, or repairs of any structures.

Use of Grant Funding

Depending on the type of eligible entity, grant funds can be used for various activities:

• Regional Planning Agencies:
  • Develop housing plans
  • Improve existing housing strategies
  • Create new regulatory processes
  • Update zoning codes
  • Enhance housing inspections
  • Lower barriers to housing supply
  • Develop community plans
• States, Insular Areas, Metropolitan Cities, and Urban Counties:
  • Administer housing strategies and plans
  • Address disparities in housing needs
  • Support community investments related to housing goals
  • Implement reformed zoning regulations
  • Conduct housing inspections
  • Develop community plans

Limitations on Use of Funds

Eligible entities can allocate no more than 10% of the grant funds for administrative costs, ensuring the majority of the funding is directed towards housing initiatives.

Coordination with Other Agencies

The Secretary is encouraged to coordinate with the Federal Transit Administration to align housing developments with transportation plans, further promoting sustainable community growth.

Program Duration

The authority to establish and award grants under this program will expire five years after the bill is enacted. Once this period ends, no new programs can be established, and the grant program will terminate at the conclusion of that five years.

Relevant Companies

• PHM - PulteGroup, Inc.: This company engages in residential construction and may experience changes in demand based on new affordable housing initiatives stemming from the bill.
• DHI - D.R. Horton, Inc.: As a homebuilder, D.R. Horton may see an increase in opportunities related to new affordable housing developments funded by grants.
• LEN - Lennar Corporation: Similar to other builders, Lennar may be positively impacted due to additional housing projects being funded through this legislation.