I 119th CONGRESS 1st Session H. R. 5651 IN THE HOUSE OF REPRESENTATIVES September 30, 2025 Mr. Neguse introduced the following bill; which was referred to the Committee on Financial Services A BILL To establish a waiver program to allow for ZIP Code localization area median income calculations, and for other purposes.

1. Short title This Act may be cited as the Affordability and Fairness for Mountain Communities Act of 2025 . 2. Waiver program for ZIP Code localization of area median income calculations (a) In general Not later than 90 days after the date of enactment of this Act, the Secretary of Housing and Urban Development shall establish a waiver program to be known as the Area Median Income Localization Waiver (in this Act referred to as the waiver program ). (b) The Waiver Program The waiver program established by the Secretary pursuant to subsection (a) shall allow a county government, or corresponding functional unit of government, to calculate area median income for covered programs using— (1) a ZIP Code as the area for calculation; and (2) a group of counties that each share a border with such county as the area for calculation. (c) Application A county government, or a corresponding functional unit of government, may apply to participate in the waiver program by submitting an application to the Secretary at such time and in such manner as the Secretary may reasonably require. (d) Selection The Secretary shall grant a waiver to each county government, or corresponding functional unit of government, that submits an application pursuant to subsection (c). (e) Use of Waiver A county government, or corresponding functional unit of government, that receives a waiver under subsection (d) may, with respect to a covered program, calculate area median income using— (1) a ZIP Code as the area for calculation; (2) a group of counties that each share a border with such county as the area for calculation; or (3) the original means for calculation provided by law for the program. (f) Covered program defined In this section, the term covered program means the following programs administered by the Secretary of Housing and Urban Development or the Secretary of Agriculture: (1) The public housing program under the United States Housing Act of 1937 ( 42 U.S.C. 1437 et seq. ). (2) The program for rental assistance under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ). (3) The HOME Investment Partnerships program under title II of the Cranton-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12721 et seq. ). (4) The programs under Title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11360 et seq. ). (5) The Housing Trust Fund program under section 1338 of the Housing and Community Development Act of 1992 ( 12 U.S.C. 4568 ). (6) The program for supportive housing for the elderly under section 202 of the Housing Act of 1959 ( 12 U.S.C. 1701q ). (7) The program for supportive housing for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 8013 ). (8) The AIDS Housing Opportunities program under subtitle D of title VIII of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12901 et seq. ). (9) The program for Native American housing under the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4101 et seq. ). (10) The program for housing assistance for Native Hawaiians under title VIII of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4221 et seq. ). (11) The programs for assistance for rural rental housing under title V of the Housing Act of 1949 ( 42 U.S.C. 1471 et seq. ). 3. Assessment regarding optimizing use of area median income to support affordable housing in mountain communities (a) In general The Secretary shall conduct a study designed to— (1) identify— (A) alternative methods for calculating area median income; and (B) alternative metrics that would make housing more affordable for low-income families residing in mountain communities; and (2) evaluate how factoring roommates into area median income calculations for seasonal workers would impact housing assistance. (b) Report (1) In general The Secretary of Housing and Urban Development shall, not later than 2 years after the date of the enactment of this Act, submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, and make publicly available, a report that describes the findings of the study conducted pursuant to subsection (a). (2) Report contents The report submitted pursuant to subparagraph (1) shall include— (A) a summary of all significant findings; (B) recommendations found in any prior reports about the use of area median income; (C) an assessment of the extent and impacts of the affordable housing crisis in mountain communities nationwide, particularly within jurisdictions for which the Secretary has applied a high housing cost adjustment, including a comparison of rent burdens for very low-income households and seasonal workers in jurisdictions with and without high housing cost adjustments; (D) an assessment of the effects that high housing cost adjustments have had on income limits and rent prices in mountain communities for which the Secretary has applied such an adjustment, including any effects on maximum rents allowed under sections 42 and 142 of the Internal Revenue Code of 1986 for tax-subsidized units; (E) recommendations for reforming or eliminating the use of area median income for the purposes of making housing more affordable for low-income and seasonal workers in mountain communities; and (F) recommendations for using existing authorities of the Secretary to make housing more affordable for low-income and seasonal workers in mountain communities, particularly in areas for which the Secretary has applied a high housing cost adjustment. 4. Definitions In this Act: (1) Area median income The term area median income means median income for an area, as such term is used in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) ), median family income, and any other substantively similar metric that the Secretary uses to refer to the median income level for a given area or jurisdiction for purposes of any program administered by the Secretary. (2) High housing cost adjustment The term high housing cost adjustment is an adjustment for high housing costs, high construction costs, or high costs of living, or any substantively similar adjustment that the Secretary may use to increase income limits for areas where the cost of housing is abnormally high compared to the median income for such area. (3) Secretary The term Secretary means the Secretary of Housing and Urban Development. (4) Mountain communities The term mountain communities means any rural area, as defined in section 1490 of title 42, United States Code, located in the Mountain Division within the Census Bureau’s Western Region.