I 

118TH CONGRESS 

2D SESSION H. R. 10179 

To direct the Secretary of Housing and Urban Development to award grants 

to States to develop and expand the industrialized construction of innovative residential dwelling units, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 20, 2024 

Ms. CARAVEO (for herself and Ms. PETTERSEN) introduced the following bill; 

which was referred to the Committee on Financial Services 

A BILL 

To direct the Secretary of Housing and Urban Development 

to award grants to States to develop and expand the 

industrialized construction of innovative residential dwelling units, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Innovative Housing 

5 Solutions and Affordability Act’’. 


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1 SEC. 2. GRANTS TO DEVELOP AND EXPAND THE INDUSTRI2 ALIZED CONSTRUCTION OF INNOVATIVE RES3 IDENTIAL DWELLING UNITS. 

4 (a) GRANTS FROM THE SECRETARY.— 

5 (1) IN GENERAL.—The Secretary of Housing 

6 and Urban Development (referred to in this section 

7 as the ‘‘Secretary’’) shall, not later than 1 year after 

8 the date of the enactment of this section, establish 

9 a program to award grants on a competitive basis to 

10 States to develop and expand the industrialized con11 struction of innovative residential dwelling units. 

12 (2) APPLICATION.—A State that seeks a grant 

13 under this subsection shall submit to the Secretary 

14 an application at such time and in such manner that 

15 the Secretary may require, and the application shall 

16 contain the following information: 

17 (A) A plan for the State to provide sub18 grants under subsection (b). 

19 (B) If the State intends to coordinate the 

20 provision of subgrants under subsection (b) 

21 with a Federal, State, or local program that is 

22 not established under this section, a plan for 

23 the State to coordinate the provision of the sub24 grants with the Federal, State, or local pro25 gram. 


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1 (C) The ability of the State to match the 

2 grant by making available non-Federal funds to 

3 provide subgrants under subsection (b). 

4 (D) Any other information that the Sec5 retary may require. 

6 (b) SUBGRANTS.— 

7 (1) IN GENERAL.—A State that has received a 

8 grant under subsection (a) shall provide subgrants 

9 on a competitive basis to eligible entities for any of 

10 the following purposes: 

11 (A) To reimburse not more than $350,000 

12 of the operating expenses of an eligible entity. 

13 (B) To provide, for each innovative resi14 dential dwelling unit that is constructed by an 

15 eligible entity, an incentive in an amount deter16 mined by the State— 

17 (i) that is not greater than $6,000 for 

18 each such unit that is not a unit of afford19 able housing and an energy-efficient unit; 

20 and 

21 (ii) that is greater than the incentive 

22 described in clause (i) for each such unit 

23 that is a unit of affordable housing and an 

24 energy-efficient unit. 


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1 (C) To provide a fixed incentive of $50,000 

2 if an eligible entity agrees to construct not less 

3 than 10 percent of the innovative residential 

4 dwelling units under a subgrant of the State as 

5 affordable housing. 

6 (D) Any other purpose that, as determined 

7 by the Secretary, would develop or expand the 

8 industrialized construction of innovative resi9 dential dwelling units. 

10 (2) APPLICATION.—An eligible entity that seeks 

11 a subgrant from a State under this subsection shall 

12 submit to the State an application at such time and 

13 in such manner as the State may require, and the 

14 application shall contain any information that the 

15 State may require. 

16 (3) LIMITATION ON SUBGRANT RECIPIENTS.— 

17 (A) DEADLINE.—Not later than 2 years 

18 after the date on which an eligible entity re19 ceives a subgrant under this subsection, the eli20 gible entity shall complete each activity for 

21 which the eligible entity received the subgrant. 

22 (B) POSTPONEMENT.—The Secretary may, 

23 on a case-by-case basis, postpone the deadline 

24 for an eligible entity to complete an activity 

25 under subparagraph (A). 


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1 (C) SANCTIONS.—If the Secretary deter2 mines, after reasonable notice and opportunity 

3 for a hearing, that an eligible entity has failed 

4 to complete an activity under subparagraph (A) 

5 by the deadline under subparagraph (A) or sub6 paragraph (B) (whichever is applicable), the 

7 Secretary may— 

8 (i) impose a civil monetary penalty on 

9 the entity; 

10 (ii) prohibit the entity from receiving 

11 another subgrant under this subsection for 

12 a period of time determined by the Sec13 retary; or 

14 (iii) take a combination of the actions 

15 described in clauses (i) and (ii). 

16 (D) CONSIDERATIONS.—In determining 

17 the extent of any penalty or prohibition to be 

18 imposed under subparagraph (C), the Secretary 

19 shall consider the severity of the eligible entity’s 

20 violation under this paragraph. 

21 (c) REPORTING REQUIREMENT.—Not later than 2 

22 years after the date on which a State first provides a 

23 subgrant under subsection (b), the State shall submit to 

24 the Secretary a report that includes the following informa25 tion with respect to the subgrants: 


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1 (1) The number of applications that the State 

2 has received for a subgrant. 

3 (2) The average cost to construct an innovative 

4 residential dwelling unit under a subgrant of the 

5 State. 

6 (3) The average cost to purchase such a unit. 

7 (4) The number of such units. 

8 (5) The number of such units that are afford9 able housing. 

10 (6) Any other information that the Secretary 

11 may require. 

12 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to the Secretary 

14 $75,000,000 for fiscal years 2025 through 2029 to carry 

15 out this section. 

16 (e) DEFINITIONS.—In this section: 

17 (1) AFFORDABLE HOUSING.—The term ‘‘afford18 able housing’’ means housing that is 1 or more of 

19 the following: 

20 (A) Compliant with the conditions set forth 

21 in section 215 of the Cranston-Gonzalez Na22 tional Affordable Housing Act (42 U.S.C. 

23 12745). 

24 (B) Eligible for financing under subpara25 graph (A) or (B) of section 10(j)(2) of the FedVerDate Sep 11 2014 03:02 Nov 21, 2024 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H10179.IH H10179

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1 eral Home Loan Bank Act (12 U.S.C. 

2 1430(j)(2)). 

3 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti4 ty’’ means an entity that— 

5 (A) employs fewer than 500 individuals; 

6 and 

7 (B) carries out— 

8 (i) industrialized construction of inno9 vative residential dwelling units; 

10 (ii) an innovative technology or proc11 ess that significantly reduces the on-site 

12 time and labor necessary to construct resi13 dential dwelling units, as determined by 

14 the Secretary; or 

15 (iii) a combination of the activities de16 scribed in clauses (i) and (ii). 

17 (3) ENERGY-EFFICIENT UNIT.—The term ‘‘en18 ergy-efficient unit’’ means a residential dwelling unit 

19 for which the annual household site energy consump20 tion is designed to be less than the average annual 

21 household site energy consumption for the cor22 responding type of residential dwelling unit in the 

23 census region where the residential dwelling unit is 

24 located, as measured by the most recent Residential 


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1 Energy Consumption Survey of the Energy Informa2 tion Administration. 

3 (4) INNOVATIVE RESIDENTIAL DWELLING

4 UNIT.—The term ‘‘innovative residential dwelling 

5 unit’’ means a residential dwelling unit that— 

6 (A) is modular, panelized, constructed with 

7 3–D printing technology, or constructed under 

8 a process approved by a State; and 

9 (B) is compliant with each building code 

10 that applies to the site on which the residential 

11 dwelling unit is to be located. 

12 (5) MODULAR.—The term ‘‘modular’’ means, 

13 with respect to a residential dwelling unit, being 

14 composed of not less than 2 modules built in a fac15 tory, transported to the site of the residential dwell16 ing unit, and attached to the foundation of the resi17 dential dwelling unit. 

18 (6) PANELIZED.—The term ‘‘panelized’’ means, 

19 with respect to a residential dwelling unit, being 

20 composed of panels built in a factory, transported to 

21 the site of the residential dwelling unit, and attached 

22 to the foundation of the residential dwelling unit. 

23 (7) STATE.—The term ‘‘State’’ means each 

24 State, each federally recognized Indian Tribe, the 


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1 District of Columbia, and each territory or posses2 sion of the United States. 

Æ 


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