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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4460 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 4460

   To reduce regulatory barriers to housing, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 5, 2024

 Mr. Fetterman introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
   To reduce regulatory barriers to housing, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reducing Regulatory Barriers to 
Housing Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) As of 2021 in the United States, there was an estimated 
        housing shortage of 3,890,000 homes. This housing supply 
        shortage has resulted in a record number of cost-burdened 
        households across regions and spanning the large and small 
        cities, towns, and coastal and rural communities of the United 
        States.
            (2) Several factors contribute to the undersupply of 
        housing in the United States, particularly workforce housing, 
        including rising costs of construction, a shortage of labor, 
        supply chain disruptions, and a lack of reliable funding 
        sources.
            (3) Regulatory barriers at the State and local levels, such 
        as zoning and land use regulations, also inhibit the creation 
        of new housing to meet local and regional housing needs.
            (4) State and local governments are proactively exploring 
        solutions for reforming regulatory barriers, but additional 
        resources, data, and models are needed to adequately address 
        these challenges.
            (5) While land use regulation is the responsibility of 
        State and local governments, Federal support for necessary 
        reforms is not a preemption of existing authority, and there is 
        a need for the Federal Government to provide support and 
        assistance to State and local governments that wish to 
        undertake necessary reforms in a manner that fits their 
        communities' needs.
            (6) It is the policy of the United States to provide for 
        fair housing throughout the country, and it is in the regional 
        and national interest to have a supply of housing that is fair, 
        affordable, adequate, and near opportunity.
            (7) Therefore, zoning ordinances or systems of land use 
        regulation that have the intent or effect of restricting 
        housing opportunities based on economic status or income 
        without interests that are substantial, legitimate, 
        nondiscriminatory and that outweigh the regional need for 
        housing are contrary to the regional and national interest.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Assistant secretary.--The term ``Assistant Secretary'' 
        means the Assistant Secretary for Policy Development and 
        Research of the Department of Housing and Urban Development.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 4. LAND USE AND PLANNING.

    (a) In General.--Section 4 of the Department of Housing and Urban 
Development Act (42 U.S.C. 3533) is amended by adding at the end the 
following:
    ``(i) Land Use and Planning.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Affordable housing.--The term `affordable 
                housing' means housing for which the monthly payment is 
                less than 30 percent of the monthly income of a 
                household.
                    ``(B) Local zoning framework.--The term `local 
                zoning framework' means the local zoning codes and 
                other ordinances, procedures, and policies governing 
                zoning and land-use at the local level.
                    ``(C) State zoning framework.--The term `State 
                zoning framework' means the State legislation or State 
                agency and department procedures enabling local 
                planning and zoning authorities and establishing and 
                guiding related policies and programs.
                    ``(D) Unit of general local government.--The term 
                `unit of general local government'--
                            ``(i) has the meaning given the term in 
                        section 102 of the Housing and Community 
                        Development Act of 1974 (42 U.S.C. 5302); and
                            ``(ii) includes regional planning entities.
            ``(2) Land use and planning.--The Secretary, acting through 
        the Assistant Secretary, shall--
                    ``(A) provide technical assistance upon request to 
                States and localities on zoning and planning to--
                            ``(i) eliminate discriminatory land use 
                        policies and reduce barriers to housing 
                        construction, including construction of housing 
                        attainable for low-income and moderate-income 
                        renters and homeowners; and
                            ``(ii) promote sustainable and resilient 
                        land development;
                    ``(B) work across the Department and with the 
                Department of the Treasury, the Department of Justice, 
                the Department of Transportation, the Department of 
                Agriculture, the Department of Health and Human 
                Services, the Environmental Protection Agency, the 
                Department of Energy, the Department of the Interior, 
                and the Council on Environmental Quality to--
                            ``(i) coordinate efforts relating to or 
                        impacting housing development; and
                            ``(ii) as relevant, streamline permitting, 
                        including by aligning the implementing 
                        procedures of those agencies under the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4321 et seq.) to promote housing production and 
                        transit-oriented development;
                    ``(C) conduct, support, and disseminate research on 
                local zoning and planning measures to improve access to 
                affordable housing and increase housing supply across a 
                range of urban, suburban, exurban, and rural 
                communities, including by establishing a research 
                program to perform research, collect data, and 
                evaluate--
                            ``(i) best practices in zoning and planning 
                        to expand opportunities for housing 
                        affordability and fair housing across a range 
                        of housing types, sizes, and affordability;
                            ``(ii) the effects of land-use reform 
                        measures on--
                                    ``(I) neighborhood, jurisdictional, 
                                and regional housing conditions;
                                    ``(II) residential stability; and
                                    ``(III) access to affordable 
                                housing at all incomes levels;
                            ``(iii) methods of community engagement to 
                        improve the public engagement process to reform 
                        land-use planning and regulatory practices;
                            ``(iv) systems and standards for data 
                        collection; and
                            ``(v) other topics related to zoning and 
                        planning as determined by the Secretary; and
                    ``(D) develop the necessary expertise and capacity 
                within the Office to carry out this paragraph; and
                    ``(E) not preempt local zoning.
            ``(3) Guidelines on state zoning frameworks.--
                    ``(A) Establishment.--Not later than 3 years after 
                the date of enactment of this subsection, the Assistant 
                Secretary shall publish a document outlining guidelines 
                and best practices for State zoning frameworks to 
                support production of adequate housing to meet the 
                needs of communities and provide housing opportunities 
                for individuals at every income level across 
                communities.
                    ``(B) Consultation; public comment.--During the 1-
                year period beginning on the date of enactment of this 
                subsection, in developing the guidelines and best 
                practices required under subparagraph (A), the 
                Assistant Secretary shall--
                            ``(i) publish draft guidelines in the 
                        Federal Register for public comment; and
                            ``(ii) establish a task force for the 
                        purpose of providing consultation with the 
                        Department of the draft guidelines published 
                        under clause (i), the members of which shall 
                        include--
                                    ``(I) planners and architects;
                                    ``(II) advocates with experience in 
                                affordable housing, community 
                                development efforts, and fair housing;
                                    ``(III) housing developers, 
                                including affordable and market-rate 
                                housing developers, manufactured 
                                housing developers, and other business 
                                interests;
                                    ``(IV) community engagement experts 
                                and community members impacted by 
                                zoning decisions;
                                    ``(V) public housing authorities 
                                and transit authorities;
                                    ``(VI) members of local zoning and 
                                planning boards and local and regional 
                                transportation planning organizations;
                                    ``(VII) State officials responsible 
                                for housing or land use, including 
                                members of State zoning boards of 
                                appeals; and
                                    ``(VIII) academic researchers.
                    ``(C) Contents.--The guidelines and best practices 
                required under subparagraph (A) shall--
                            ``(i) outline potential models for updated 
                        State enabling legislation or State agency and 
                        department procedures;
                            ``(ii) include recommendations regarding--
                                    ``(I) the reduction or elimination 
                                of parking minimums;
                                    ``(II) the increase in maximum 
                                floor area ratio requirements and 
                                maximum building heights and the 
                                reduction in minimum lot size and 
                                setback requirements;
                                    ``(III) the elimination of 
                                restrictions against accessory dwelling 
                                units;
                                    ``(IV) increasing by-right uses, 
                                including duplex, triplex, or quadplex 
                                buildings, across cities or 
                                metropolitan areas, including 
                                mechanisms, such as proximity to 
                                transit, to determine the 
                                jurisdictional level for rezoning and 
                                ensures development that does not 
                                disproportionately burden residents of 
                                economically distressed areas;
                                    ``(V) provisions regarding review 
                                of by-right development proposals to 
                                streamline review and reduce 
                                uncertainty, including non-
                                discretionary, ministerial review;
                                    ``(VI) the reduction of obstacles 
                                to a range of housing types at all 
                                levels of affordability, including 
                                manufactured and modular housing;
                                    ``(VII) State model codes for 
                                directing local reforms, including 
                                mechanisms to encourage adoption;
                                    ``(VIII) provisions to encourage 
                                transit-oriented development, including 
                                but not limited to, increased 
                                permissible units per structure and 
                                reduced minimum lot sizes near existing 
                                or planned public transit stations;
                                    ``(IX) improvements to the public 
                                engagement processes, including--
                                            ``(aa) meaningful access 
                                        for limited English proficient 
                                        persons and effective 
                                        communication improvements for 
                                        persons with disabilities;
                                            ``(bb) leveraging of 
                                        virtual meeting technologies; 
                                        and
                                            ``(cc) proactive outreach 
                                        in communities;
                                    ``(X) the elimination of or reforms 
                                to protest petition statutes;
                                    ``(XI) the standardization, 
                                reduction, or elimination of impact 
                                fees;
                                    ``(XII) the standardization of 
                                building codes;
                                    ``(XIII) models for community 
                                benefit agreements;
                                    ``(XIV) mechanisms to preserve 
                                affordability, limit disruption of low-
                                income communities, and prevent 
                                displacement of existing residents;
                                    ``(XV) a model for a State zoning 
                                appeals process, which would--
                                            ``(aa) create a process for 
                                        developers or builders 
                                        requesting a variance, 
                                        conditional use, or zoning 
                                        district change or otherwise 
                                        petitioning a local zoning or 
                                        planning board for a project 
                                        including a State-defined 
                                        amount of affordable housing to 
                                        appeal a rejection to a State 
                                        body or regional body empowered 
                                        by the State;
                                            ``(bb) establish 
                                        qualifications for communities 
                                        to be exempted from the appeals 
                                        process based on their 
                                        available stock of affordable 
                                        housing; and
                                            ``(cc) establish a State 
                                        zoning appeals board to 
                                        consider appeals to a variance 
                                        rejection and objectively 
                                        evaluate petitions based on the 
                                        potential for environmental 
                                        damage and infrastructural 
                                        capacity;
                                    ``(XVI) best practices on the 
                                disposition of land owned by State 
                                governments for affordable housing 
                                development; and
                                    ``(XVII) other land use measures 
                                that promote access to new housing 
                                opportunities identified by the 
                                Secretary; and
                            ``(iii) consider--
                                    ``(I) local housing needs, 
                                including ways to set and measure 
                                housing goals and targets;
                                    ``(II) a range of affordability for 
                                rental units, with a prioritization of 
                                units attainable to extremely low-
                                income, low-income, and moderate-income 
                                residents;
                                    ``(III) a range of affordability 
                                for homeownership units attainable to 
                                low-income and moderate-income 
                                residents;
                                    ``(IV) distinctions between States 
                                providing constitutional or statutory 
                                home rule authority to municipalities 
                                and States operating under the Dillon 
                                rule, as articulated in Hunter v. 
                                Pittsburgh, 207 U.S. 161 (1907);
                                    ``(V) accountability measures;
                                    ``(VI) the long-term cost to 
                                residents and businesses if more 
                                housing is not constructed;
                                    ``(VII) barriers to individuals 
                                seeking to access affordable housing in 
                                growing communities and communities 
                                with economic opportunity;
                                    ``(VIII) consistency with respect 
                                to fair housing and civil rights 
                                requirements;
                                    ``(IX) coordination between 
                                infrastructure investments and housing 
                                planning;
                                    ``(X) statewide mechanisms to 
                                preserve existing affordability over 
                                the long term, including support for 
                                land banks and community land trusts;
                                    ``(XI) guidance to States on 
                                collecting and maintaining proactive 
                                data on the current rental housing 
                                market and rental registries; and
                                    ``(XII) other considerations, as 
                                identified by the Secretary.
            ``(4) State zoning frameworks.--
                    ``(A) In general.--Not later than 180 days after 
                the date on which the Assistant Secretary receives a 
                request from a State for technical assistance, the 
                Assistant Secretary may provide technical assistance to 
                States that seek to adopt a State zoning framework that 
                incorporates, in whole or in part, the guidelines and 
                best practices described in paragraph (4).
                    ``(B) Guidance.--In adopting a State zoning 
                framework under subparagraph (A), the Assistant 
                Secretary shall not provide technical assistance to 
                include measures the net effect of which would promote 
                exclusionary zoning practices, restrict net production, 
                or otherwise increase barriers to housing construction.
            ``(5) Guidelines on local zoning frameworks.--
                    ``(A) Establishment.--Not later than 3 years after 
                the date of enactment of this subsection, the Assistant 
                Secretary shall publish best practices for local zoning 
                frameworks using the same public comment and 
                consultation process described in paragraph (3)(B) with 
                respect to State zoning frameworks.
                    ``(B) Contents.--The best practices required under 
                subparagraph (A) shall--
                            ``(i) include recommendations regarding--
                                    ``(I) the simplification and 
                                standardization of existing zoning 
                                codes;
                                    ``(II) the reduction or elimination 
                                of parking minimums;
                                    ``(III) the increase in maximum 
                                floor area ratio requirements and 
                                maximum building heights and the 
                                reduction in minimum lot size and 
                                setback requirements;
                                    ``(IV) the elimination of 
                                restrictions against accessory dwelling 
                                units;
                                    ``(V) increasing by-right uses, 
                                including duplex, triplex, or quadplex 
                                buildings;
                                    ``(VI) the reduction of obstacles 
                                to a range of housing types, including 
                                manufactured and modular housing;
                                    ``(VII) provisions to encourage 
                                transit-oriented development, including 
                                increased permissible units per 
                                structure and reduced minimum lot sizes 
                                near existing or planned public transit 
                                stations;
                                    ``(VIII) improvements to the public 
                                engagement processes, including--
                                            ``(aa) meaningful access 
                                        for limited English proficient 
                                        persons and effective 
                                        communication improvements for 
                                        persons with disabilities;
                                            ``(bb) leveraging of 
                                        virtual meeting technologies; 
                                        and
                                            ``(cc) proactive outreach 
                                        in communities;
                                    ``(IX) provisions regarding review 
                                of by-right development proposals to 
                                streamline review and reduce 
                                uncertainty, including non-
                                discretionary, ministerial review;
                                    ``(X) recommendations regarding 
                                maximum review timelines;
                                    ``(XI) models for standardized 
                                community benefit agreements;
                                    ``(XII) best practices on the 
                                disposition of land owned by local 
                                governments and transit authorities for 
                                affordable housing development;
                                    ``(XIII) mechanisms and incentives 
                                to preserve affordability, limit 
                                disruption of low-income communities, 
                                and prevent or reduce displacement of 
                                existing residents;
                                    ``(XIV) other regulatory reforms to 
                                increase housing construction and 
                                reduce housing costs; and
                                    ``(XV) other land use measures that 
                                promote access to new housing 
                                opportunities identified by the 
                                Secretary; and
                            ``(ii) consider--
                                    ``(I) local housing needs;
                                    ``(II) a range of affordability for 
                                rental units, with a prioritization of 
                                units attainable to extremely low-
                                income, low-income, and moderate-income 
                                residents;
                                    ``(III) a range of affordability 
                                for homeownership units attainable to 
                                low- and moderate-income residents;
                                    ``(IV) the long-term cost to 
                                residents and businesses if more 
                                housing is not constructed;
                                    ``(V) barriers to accessing 
                                affordable housing in growing 
                                communities and communities with 
                                economic opportunities; and
                                    ``(VI) other policies or methods, 
                                as identified by the Secretary.
                    ``(C) Technical assistance.--Not later than 180 
                days after the date on which the Assistant Secretary 
                receives a request for technical assistance from a 
                local government or regional planning entity, the 
                Assistant Secretary may provide technical assistance to 
                those entities seeking to rehaul, reform, or otherwise 
                update local zoning frameworks in line with the 
                guidelines described in paragraph (3), including 
                assisting in hosting community engagement sessions.
                    ``(D) Guidance.--In adopting a local zoning 
                framework in accordance with guidance issued under 
                subparagraph (A), the Assistant Secretary shall not 
                provide technical assistance to a local government or a 
                regional planning entity to include measures the net 
                effect of which would promote exclusionary zoning 
                practices, restrict net production, or otherwise 
                increase barriers to housing construction.
            ``(6) Reporting.--Not later than 2 years after the date on 
        which the Assistant Secretary publishes the guidelines and best 
        practices described in paragraphs (3) and (5), the Assistant 
        Secretary shall submit to Congress a report describing--
                    ``(A) the States that have adopted a version of the 
                guidelines and best practices, including those that 
                developed and adopted a State zoning framework;
                    ``(B) the localities that have adopted a version of 
                the guidelines;
                    ``(C) a summary of the modifications that each such 
                State made in their State zoning framework; and
                    ``(D) a general summary of the types of updates 
                localities have made to their local zoning framework.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated $10,000,000 to carry out the 
        technical assistance in paragraphs (4)(A) and (5)(C), and 
        $10,000,000 to carry out this section, for each of fiscal years 
        2025 through 2029.''.
    (b) Abolishment of Regulatory Barriers Clearinghouse.--
            (1) In general.--The Regulatory Barriers Clearinghouse 
        established pursuant to section 1205 of the Housing and 
        Community Development Act of 1992 (42 U.S.C. 12705d) is 
        abolished.
            (2) Repeal.--Section 1205 of the Housing and Community 
        Development Act of 1992 (42 U.S.C. 12705d) is repealed.

SEC. 5. QUALIFIED ALLOCATION PLANS.

     The selection criteria under a qualified allocation plan under 
section 42 of the Internal Revenue Code of 1986) shall not include 
consideration of--
            (1) any opposition with respect to the project from local 
        or elected officials; or
            (2) any local government contribution to the project, 
        except to the extent such contribution is taken into account as 
        part of a broader consideration of the project's ability to 
        leverage outside funding sources, and is not prioritized over 
        any other source of outside funding.

SEC. 6. NATIONAL ZONING MAPPING.

    (a) In General.--The Secretary shall establish a grant program 
under which the Secretary provides funding to academic institutions, 
research collaboratives, nonprofit organizations, or other entities to 
conduct zoning-district-level digitization of zoning codes.
    (b) Priority.--In awarding grants under this section, the Secretary 
shall prioritize projects that will--
            (1) create a plan to maintain the database for such 
        information;
            (2) establish a portal for State entities and local 
        governments to input zoning-related information;
            (3) prioritize mapping areas whose zoning has not 
        previously been digitized;
            (4) coordinate with State or local government entities, 
        provide a plan for long-term maintenance of the database, and 
        establish a protocol for data sharing; and
            (5) develop tools to test the impact of various zoning and 
        land use regulation reforms on the overall supply of new 
        housing.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $3,500,000 for 
fiscal years 2025 through 2027.

SEC. 7. GRANTS FOR ESTABLISHING PRE-APPROVED DESIGNS FOR AFFORDABLE 
              HOUSING.

    (a) Definitions.--In this section:
            (1) Covered structure.--The term ``covered structure'' 
        means--
                    (A) a low-rise or mid-rise structure with between 2 
                and 8 dwelling units; and
                    (B) includes--
                            (i) an accessory dwelling unit;
                            (ii) a duplex;
                            (iii) a triplex;
                            (iv) a fourplex;
                            (v) a cottage court;
                            (vi) a courtyard building; and
                            (vii) any other structure the Secretary 
                        considers appropriate.
            (2) Eligible entity.--The term ``eligible entity'' means a 
        unit of general local government.
    (b) Authority.-- The Secretary may award grants to eligible 
entities to establish and implement designs for use of covered 
structures in the jurisdiction of the eligible entity that the eligible 
entity preapproves as affordable housing.
    (c) Set-Aside for Smaller or Rural Areas.--Of the amount made 
available in each fiscal year for grants under this section, the 
Secretary shall ensure that not less than 10 percent shall be used for 
grants to eligible entities that are smaller eligible entities or are 
located in rural areas.
    (d) Reports.--The Secretary shall require eligible entities 
receiving grants under this section to report on--
            (1) the impacts of the activities carried out using such 
        grant amounts in improving the production and supply of 
        affordable housing;
            (2) the pre-approved designs established and implemented 
        using such grant amounts in their communities; and
            (3) the impact of the activities funded with grant amounts.
    (e) Availability of Information.--The Secretary shall--
            (1) make publicly available information on the pre-approved 
        designs submitted by eligible entities receiving grants under 
        this section, including information on the benefits of use of 
        such designs; and
            (2) collect, identify, and disseminate best practices 
        regarding such designs to interested localities and parties.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $10,000,000 for 
fiscal years 2025 through 2027.
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