(D) Acquisitions (including leasing) or dis-
position of, or equity loans on an existing struc-
ture, or acquisition (including leasing) of vacant 
land if the structure or land acquired, financed, 
or disposed of will be retained for the same use. 
(3) The following housing-related activities shall 
be subject to regulations equivalent or substantially 
similar to the regulations entitled, (i) ‘‘categorical 
exclusions subject to section 58.5’’ and (ii) ‘‘categor-
ical exclusions subject to the Federal laws and au-
thorities cited in sections 50.4’’ in section 58.35(a) 
and section 50.20, respectively, of title 24, Code of 
Federal Regulations, as in effect on January 1, 
2025, if such activities do not materially alter envi-
ronmental conditions and do not materially exceed 
the original scope of the project: 
(A) Acquisitions of open space or residen-
tial property, where such property will be re-
tained for the same use or will be converted to 
open space to help residents relocate out of an 
area designated as a high-risk area by the Sec-
retary. 
(B) Conversion of existing office buildings 
into residential development, subject to— 
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(i) a maximum number of units to be 
determined by the Secretary; and 
(ii) a limitation on the change in 
building size to not more than 20 percent. 
(C) New construction, development, demo-
lition, acquisition, or disposition on 5 to 15 
dwelling units where there is a maximum of fif-
teen units on any 1 site. The units can be 15 
1-unit buildings or 1 15-unit building, or any 
combination in between. 
(D) New construction, development, demo-
lition, acquisition, or disposition on 15 or more 
housing units developed on scattered sites when 
there are not more than 15 housing units on 
any 1 site, and the sites are more than a set 
number of feet apart as determined by the Sec-
retary. 
(E) Rehabilitation of buildings and im-
provements in the case of a building for resi-
dential use with 5 to 15 units, if the density is 
not increased beyond 15 units and the land use 
is not changed. 
(F) Infill projects consisting of new con-
struction, rehabilitation, or development of resi-
dential housing units. 
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(G) Buyouts, defined as the voluntary ac-
quisition of properties properties located in a (i) 
floodway, (ii) floodplain, or (iii) other area, 
clearly delineated by the grantee, that has been 
impacted by a predictable environmental threat 
to the safety and wellbeing of program bene-
ficiaries caused or exacerbated by a Federally 
declared disaster. 
SEC. 4. REPORT. 
The Secretary shall submit to the chairs and ranking 
members of the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives an annual 
report during the 5-year period beginning on the date that 
is 2 years after the date of enactment of this Act that 
provides a summary of findings of reductions in review 
times and administrative cost reduction, with a particular 
focus on the affordable housing sector, as a result of the 
actions set forth in this Act, and any recommendations 
of the Secretary for future congressional action with re-
spect to revising categorical exclusions or exemptions 
under title 24, Code of Federal Regulations. 
Æ 
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