age dry type, or medium voltage dry type dis-
tribution transformer is greater than trial 
standard level 2 (as described in table V.1 in 
the proposed rule entitled ‘Energy Conservation 
Program: Energy Conservation Standards for 
Distribution Transformers’ (88 Fed. Reg. 1722 
(January 11, 2023))). 
‘‘(D) EFFECTIVE
DATE
FOR
CERTAIN 
RULES.—Any rule finalized by the Secretary 
under which the efficiency level of a liquid-im-
mersed type, low voltage dry type, or medium 
voltage dry-type distribution transformer is trial 
standard level 1 or 2 (as described in table V.1 
in the proposed rule entitled ‘Energy Conserva-
tion Program: Energy Conservation Standards 
for Distribution Transformers’ (88 Fed. Reg. 
1722 (January 11, 2023))) shall not take effect 
until 10 years after the date on which the rule 
is finalized.’’. 
SEC. 104. INCENTIVIZING ZONING REFORM. 
(a) PURPOSE.—The purpose of this section is to dis-
courage the use of discriminatory land use policies and 
remove barriers to making housing more affordable in 
order to further the original intent of the Community De-
velopment Block Grant program. 
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(b) LAND USE PLAN.— 
(1) IN GENERAL.—Section 104 of the Housing 
and Community Development Act of 1974 (42 
U.S.C. 5304) is amended by adding at the end the 
following: 
‘‘(n) PLAN TO TRACK DISCRIMINATORY LAND USE 
POLICIES.— 
‘‘(1) IN GENERAL.—Prior to receipt in any fis-
cal year of a grant from the Secretary under sub-
section (b), (d)(1), or (d)(2)(B) of section 106, each 
recipient shall have prepared and submitted, not less 
frequently than once during the preceding 5-year pe-
riod, in accordance with this subsection and in such 
standardized form as the Secretary shall, by regula-
tion, prescribe, with respect to each land use policy 
described in paragraph (2) that is applicable to the 
jurisdiction served by the recipient, a description 
of— 
‘‘(A) whether the recipient has already 
adopted the policy in the jurisdiction served by 
the recipient; 
‘‘(B) the plan of the recipient to implement 
the policy in that jurisdiction; or 
‘‘(C) the ways in which adopting the policy 
will benefit the jurisdiction. 
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‘‘(2) LAND
USE
POLICIES.—The policies de-
scribed in this paragraph are as follows: 
‘‘(A) Enacting high-density single-family 
and multifamily zoning. 
‘‘(B) Expanding by-right multifamily zoned 
areas. 
‘‘(C) 
Allowing 
duplexes, 
triplexes, 
or 
fourplexes in areas zoned primarily for single- 
family residential homes. 
‘‘(D) Allowing manufactured homes in 
areas zoned primarily for single-family residen-
tial homes. 
‘‘(E) Allowing multifamily development in 
retail, office, and light manufacturing zones. 
‘‘(F) Allowing single-room occupancy de-
velopment wherever multifamily housing is al-
lowed. 
‘‘(G) Reducing minimum lot size. 
‘‘(H) Ensuring historic preservation re-
quirements and other land use policies or re-
quirements are coordinated to encourage cre-
ation of housing in historic buildings and his-
toric districts. 
‘‘(I) Increasing the allowable floor area 
ratio in multifamily housing areas. 
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‘‘(J) Creating transit-oriented development 
zones. 
‘‘(K) Streamlining or shortening permit-
ting processes and timelines, including through 
one-stop and parallel-process permitting. 
‘‘(L) Eliminating or reducing off-street 
parking requirements. 
‘‘(M) Ensuring impact and utility invest-
ment fees accurately reflect required infrastruc-
ture needs and related impacts on housing af-
fordability are otherwise mitigated. 
‘‘(N) Allowing prefabricated construction. 
‘‘(O) Reducing or eliminating minimum 
unit square footage requirements. 
‘‘(P) Allowing the conversion of office units 
to apartments. 
‘‘(Q) Allowing the subdivision of single- 
family homes into duplexes. 
‘‘(R) Allowing accessory dwelling units, in-
cluding detached accessory dwelling units, on all 
lots with single-family homes. 
‘‘(S) Establishing density bonuses. 
‘‘(T) Eliminating or relaxing residential 
property height limitations. 
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‘‘(U) Using property tax abatements to en-
able higher density and mixed-income commu-
nities. 
‘‘(V) Donating vacant land for affordable 
housing development. 
‘‘(3) EFFECT OF SUBMISSION.—A submission 
under this subsection shall not be binding with re-
spect to the use or distribution of amounts received 
under section 106. 
‘‘(4) ACCEPTANCE
OR
NONACCEPTANCE
OF 
PLAN.—The acceptance or nonacceptance of any 
plan submitted under this subsection in which the 
information required under this subsection is pro-
vided is not an endorsement or approval of the plan, 
policies, or methodologies, or lack thereof.’’. 
(2) 
EFFECTIVE
DATE.—The 
requirements 
under subsection (n) of section 104 of the Housing 
and Community Development Act of 1974 (42 
U.S.C. 5304), as added by paragraph (1), shall— 
(A) take effect on the date that is 1 year 
after the date of enactment of this Act; and 
(B) apply to recipients of a grant under 
subsection (b), (d)(1), or (d)(2)(B) of section 
106 of the Housing and Community Develop-
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ment Act of 1974 (42 U.S.C. 5306) before, on, 
and after such date. 
SEC. 
105. 
DECREASING 
THE 
EQUITY 
PENALTY 
AND 
INCENTIVIZING MORE LONG-TERM OWNERS 
TO SELL HOMES. 
(a) INCREASE OF EXCLUSION OF GAIN FROM SALE 
OF PRINCIPAL RESIDENCE.—Section 121(b) of the Inter-
nal Revenue Code of 1986 is amended— 
(1) by striking ‘‘$250,000’’ and inserting 
‘‘$500,000’’ each place it appears, 
(2) by striking ‘‘500,000’’ and inserting 
‘‘$1,000,000’’ each place it appears, 
(3) in paragraph (2)(A), in the heading, by 
striking ‘‘$500,000’’ and inserting ‘‘$1,000,000’’, and 
(4) by adding at the end the following new 
paragraph: 
‘‘(5) ADJUSTMENT
FOR
INFLATION.—In the 
case of a taxable year beginning after 2024, the 
$500,000 and $1,000,000 amounts in paragraphs 
(1), (2), and (4) shall be increased by an amount 
equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
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(b) REPORT TO CONGRESS.—Not later than 180 days 
after the date of the enactment of this Act, the Comp-
troller General of the United States shall submit to the 
Congress a report that— 
(1) identifies issues with housing affordability 
for America’s middle-income homeowners and rent-
ers, including identifying geographically where hous-
ing is the most unaffordable for these populations; 
(2) identifies Federal housing programs, includ-
ing Federal tax credits, grants, credit programs, and 
other programs that currently benefit lower-income 
households, which are not available to middle-income 
households; 
(3) identifies any gaps in the inclusion of mid-
dle-income households in Federal housing programs 
designed to promote affordability; 
(4) sets forth recommendations for a definition 
of ‘‘workforce housing’’ based on income parameters 
in order to assist Federal agencies in including mid-
dle-income households under existing Federal pro-
grams; and 
(5) analyzes how such a definition could relate 
to incentives for workforce housing development 
through Federal programs, policies, and other initia-
tives. 
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SEC. 202. SUPPORTING AFFORDABILITY AND SAFETY FOR 
PUBLIC SERVANTS. 
Section 3(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(a)) is amended— 
(1) in paragraph (1), by striking ‘‘Except as 
provided in paragraph (2)’’ and inserting ‘‘Except as 
provided in paragraphs (2) and (4)’’; and 
(2) in paragraph (4)— 
(A) in the heading, by striking ‘‘OCCU-
PANCY
BY
POLICE
OFFICERS’’ and inserting, 
‘‘OCCUPANCY
BY
POLICE
OFFICERS, 
FIRE-
FIGHTERS, AND EMERGENCY MEDICAL TECHNI-
CIANS’’; 
(B) by redesignating subparagraph (C) as 
subparagraph (D); 
(C) by inserting after subparagraph (B) 
the following: 
‘‘(C) 
RENTAL
PAYMENTS.—Notwith-
standing paragraph (1), a family of which one 
or more members are a police officer, fire-
fighter, or emergency medical technician shall 
pay as rent for a dwelling unit assisted under 
this Act the highest of the following amounts, 
rounded to the nearest dollar: 
‘‘(i) 15 per centum of the family’s 
monthly adjusted income; or 
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‘‘(ii) 5 per centum of the family’s 
monthly income’’; and 
(D) by amending subparagraph (D), as so 
redesignated, to read as follows: 
‘‘(D) DEFINITIONS.—In this paragraph: 
‘‘(i) POLICE OFFICER.—The term ‘po-
lice officer’ means any person determined 
by a public housing agency to be, during 
the period of residence of that person in 
public housing, employed on a full-time 
basis as a duly licensed professional police 
officer by a Federal, State, or local govern-
ment or by any agency thereof (including 
a public housing agency having an accred-
ited police force). 
‘‘(ii) FIREFIGHTER.—The term ‘fire-
fighter’ means any person determined by a 
public housing agency to be, during the pe-
riod of residence of that person in public 
housing, employed on a full-time basis as 
a firefighter by a fire department or emer-
gency medical services responder unit of 
the Federal Government, a State, unit of 
general local government, or an Indian 
tribal government. 
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‘‘(iii) EMERGENCY MEDICAL TECHNI-
CIAN.—The term ‘emergency medical tech-
nician’ means any person determined by a 
public housing agency to be, during the pe-
riod of residence of that person in public 
housing, employed on a full-time basis as 
an emergency medical technician by a fire 
department or emergency medical services 
responder unit of the Federal Government, 
a State, unit of general local government, 
or an Indian tribal government.’’. 
SEC. 203. EXPANDING PROGRAMS SUPPORTING HOMEOWN-
ERSHIP FOR THOSE SERVING THE COMMU-
NITY. 
(a) ELIGIBILITY FOR GOOD NEIGHBORS NEXT DOOR 
SALES PROGRAM.—Members of the Armed Forces, fire-
fighters, and law enforcement officers shall be eligible to 
purchase eligible properties under the Good Neighbor 
Next Door Sales Program of the Secretary of Housing and 
Urban Development, as provided under subsection (b). 
(b) ELIGIBLE PROPERTIES.—Notwithstanding sec-
tion 204 of the National Housing Act (12 U.S.C. 1710), 
part 291 of the regulations of the Secretary of Housing 
and Urban Development (24 C.F.R. part 291), or any 
other provision of law, regulation, guideline, order, or no-
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tice, in carrying out the Good Neighbor Next Door Sales 
Program for single-unit properties acquired by the Sec-
retary, properties shall be made available for purchase 
under the Program by members of the Armed Forces, by 
firefighters, and by law enforcement officers without re-
gard to whether or not they are located in a revitalization 
area. 
(c) REGULATIONS.—The Secretary of Housing and 
Urban Development shall amend the regulations of the 
Secretary as necessary to carry out subsections (a) and 
(b). 
SEC. 204. IMPROVING VOLUNTEER FIRST RESPONDER 
HOUSING. 
(a) DEFINITIONS.—In this section: 
(1) BONA
FIDE
VOLUNTEER; ELIGIBLE
EM-
PLOYER; QUALIFIED SERVICES.—The terms ‘‘bona 
fide volunteer’’, ‘‘eligible employer’’, and ‘‘qualified 
services’’ have the meanings given those terms in 
section 457(e) of the Internal Revenue Code of 
1986. 
(2) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 
has the meaning given the term ‘‘Indian tribe’’ in 
section 501(b) of the Housing Act of 1949 (42 
U.S.C. 1471(b)). 
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