I 118th CONGRESS 2d Session H. R. 10351 IN THE HOUSE OF REPRESENTATIVES December 11, 2024 Mr. Flood (for himself and Ms. Blunt Rochester ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To direct the Secretary of Housing and Urban Development, acting through the Assistant Secretary for Policy Development and Research, to publish guidelines and best practices for State zoning and local zoning frameworks, and for other purposes.

1. Short title This Act may be cited as the Housing Supply and Innovation Frameworks Act . 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 can help adequately address these challenges. (5) While land use regulation is the responsibility of State and local governments, there is Federal support for necessary reforms, and there is an opportunity 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) 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. 3. Definitions In this Act: (1) Affordable housing The term affordable housing means housing for which the monthly payment is not more than 30 percent of the monthly income of the household. (2) Assistant Secretary The term Assistant Secretary means the Assistant Secretary for Policy Development and Research of the Department of Housing and Urban Development. (3) Framework-related terms (A) 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. (B) State zoning framework The term State zoning framework means the State legislation or State agency and department procedures, or such legislation or procedures in an insular area of the United States, enabling local planning and zoning authorities and establishing and guiding related policies and programs. (4) Secretary The term Secretary means the Secretary of Housing and Urban Development. 4. Guidelines on State and local zoning frameworks (a) Establishment Not later than 3 years after the date of enactment of this section, the Assistant Secretary shall publish documents outlining guidelines and best practices to support production of adequate housing to meet the needs of communities and provide housing opportunities for individuals at every income level across communities with respect to— (1) State zoning frameworks; and (2) local zoning frameworks. (b) Consultation; public comment During the one-year period beginning on the date of enactment of this section, in developing the guidelines and best practices required under the previous subsection, the Assistant Secretary shall— (1) publish draft guidelines in the Federal Register for public comment; and (2) establish a task force for the purpose of providing consultation to draft guidelines published under the previous clause, the members of which shall include— (A) planners and architects; (B) advocates with experience in affordable housing, community development efforts, and fair housing; (C) housing developers, including affordable and market-rate housing developers, manufactured housing developers, and other business interests; (D) community engagement experts and community members impacted by zoning decisions; (E) public housing authorities and transit authorities; (F) members of local zoning and planning boards and local and regional transportation planning organizations; (G) State officials responsible for housing or land use, including members of State zoning boards of appeals; (H) academic researchers; and (I) home builders. (c) Contents The guidelines and best practices required under subsection (a) shall— (1) with respect to State zoning frameworks, outline potential models for updated State enabling legislation or State agency and department procedures; (2) include recommendations regarding— (A) the reduction or elimination of parking minimums; (B) the increase in maximum floor area ratio requirements and maximum building heights and the reduction in minimum lot sizes and set-back requirements; (C) the elimination of restrictions against accessory dwelling units; (D) 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; (E) provisions regarding review of by-right development proposals to streamline review and reduce uncertainty, including— (i) nondiscretionary, ministerial review; and (ii) entitlement and design review processes; (F) the reduction of obstacles to a range of housing types at all levels of affordability, including manufactured and modular housing; (G) State model zoning regulations for directing local reforms, including mechanisms to encourage adoption; (H) provisions to encourage transit-oriented development, including increased permissible units per structure and reduced minimum lot sizes near existing or planned public transit stations; (I) potential reforms to the public engagement process, including— (i) meaningful access for persons with limited English proficiency and effective communication improvements for persons with disabilities; (ii) leveraging of virtual meeting technologies; and (iii) proactive outreach in communities; (J) reforms to protest petition statutes; (K) the standardization, reduction, or elimination of impact fees; (L) cost effective and appropriate building codes; (M) models for community benefit agreements; (N) mechanisms to preserve affordability, limit disruption of low-income communities, and prevent displacement of existing residents; (O) with respect to State zoning frameworks, a model for a State zoning appeals process, which would— (i) 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; (ii) establish qualifications for communities to be exempted from the appeals process based on their available stock of affordable housing; and (iii) 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; (P) with respect to State zoning frameworks, best practices on the disposition of land owned by State governments for affordable housing development; (Q) with respect to local zoning frameworks— (i) the simplification and standardization of existing zoning codes; (ii) maximum review timelines; and (iii) best practices for the disposition of land owned by local governments; and (R) other land use measures that promote access to new housing opportunities identified by the Secretary; and (3) consider— (A) local housing needs, including ways to set and measure housing goals and targets; (B) a range of affordability for rental units, with a prioritization of units attainable to extremely low-income, low-income, and moderate-income residents; (C) a range of affordability for homeownership units attainable to low-income and moderate-income residents; (D) with respect to State zoning frameworks, 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)); (E) accountability measures; (F) the long-term cost to residents and businesses if more housing is not constructed; (G) barriers to individuals seeking to access affordable housing in growing communities and communities with economic opportunity; (H) consistency with respect to fair housing and civil rights requirements; (I) coordination between infrastructure investments and housing planning; (J) with respect to State zoning frameworks, statewide mechanisms to preserve existing affordability over the long term, including support for land banks and community land trusts; (K) with respect to State zoning frameworks, guidance to States on collecting and maintaining proactive data on the current rental housing market and rental registries; (L) public comments described in subsection (b)(1); and (M) other considerations as identified by the Secretary. 5. Reporting Not later than 2 years after the date on which the Assistant Secretary publishes the guidelines and best practices for State and local zoning frameworks, the Assistant Secretary shall submit to Congress a report describing— (1) the States that have adopted a version of the guidelines and best practices, including those that developed and adopted a State zoning framework; (2) the localities that have adopted a version of the guidelines; (3) a summary of the modifications that each State has made in their State zoning framework; and (4) a general summary of the types of updates localities have made to their local zoning framework. 6. Abolishment of regulatory barriers clearinghouse (a) 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. (b) Repeal Section 1205 of the Housing and Community Development Act of 1992 ( 42 U.S.C. 12705d ) is repealed. 7. Authorization of Appropriations There is authorized to be appropriated to the Secretary of Housing and Urban Development $5,000,000 for each of fiscal years 2025 through 2029.