II 119th CONGRESS 1st Session S. 2390 IN THE SENATE OF THE UNITED STATES July 23, 2025 Mr. Rounds (for himself and Mr. Kim ) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To require the Secretary of Housing and Urban Development to reclassify the application of certain requirements under the National Environmental Policy Act of 1969 for housing-related activities.

1. Short title This Act may be cited as the Unlocking Housing Supply Through Streamlined and Modernized Reviews Act . 2. Definitions In this Act: (1) Infill project The term infill project means a project that— (A) occurs within the geographic limits of a municipality; (B) is adequately served by existing utilities and public services as required under applicable law; (C) is located on a site of previously disturbed land of not more than 5 acres and substantially surrounded by residential or commercial development; (D) will repurpose a vacant or underutilized parcel of land, or a dilapidated or abandoned structure; and (E) will serve a residential or commercial purpose. (2) Secretary The term Secretary means the Secretary of Housing and Urban Development. 3. NEPA streamlining for hud housing-related activities (a) In general The Secretary shall, in accordance with section 553 of title 5, United States Code, and section 103 of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4333 ), expand and reclassify housing-related activities under the necessary administrative regulations as follows: (1) The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled exempt activities as set forth in section 58.34 of title 24, Code of Federal Regulations, as in effect on January 1, 2025: (A) Tenant-based rental assistance, as defined in section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ). (B) Supportive services, including health care, housing services, permanent housing placement, day care, nutritional services, short-term payment for rent, mortgage, or utility costs, and assistance in gaining access to Federal Government and State and local government benefits and services. (C) Operating costs, including maintenance, security, operation, utilities, furnishings, equipment, supplies, staff training, and recruitment and other incidental costs. (D) Economic development activities, including equipment purchases, inventory financing, interest subsidies, operating expenses, and similar costs not associated with construction or expansion of existing operations. (E) Activities to assist homebuyers to purchase existing dwelling units or dwelling units under construction, including closing costs and down payment assistance, interest rate buydowns, and similar activities that result in the transfer of title. (F) Affordable housing pre-development costs related to obtaining site options, project financing, administrative costs and fees for loan commitment, zoning approvals, and other related activities that do not have a physical impact. (G) Approval of supplemental assistance, including insurance or guarantee, to a project previously approved by the Secretary. (H) Emergency homeowner or renter assistance for HVAC, hot water heaters, and other necessary uses of existing utilities required under applicable law. (2) The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled, (i) categorical exclusions not subject to section 58.5 and (ii) categorical exclusions not subject to the Federal laws and authorities cited in sections 50.4 in section 58.35(b) and section 50.19, respectively of title 24, Code of Federal Regulations, as in effect on January 1, 2025, if such activities do not materially alter environmental conditions and do not materially exceed the original scope of the project: (A) Acquisition, repair, improvement, reconstruction, or rehabilitation of public facilities and improvements (other than buildings) if the facilities and improvements are in place and will be retained in the same use without change in size or capacity of more than 20 percent, including replacement of water or sewer lines, reconstruction of curbs and sidewalks, and repaving of streets. (B) Rehabilitation of 1-to-4 unit residential buildings, and existing housing-related infrastructure, such as repairs or rehabilitation of existing wells, septics, or utility lines that connect to that housing. (C) New construction, development, demolition, acquisition, or disposition on up to 4 scattered site existing dwelling units where there is a maximum of 4 units on any 1 site. (D) Acquisitions (including leasing) or disposition of, or equity loans on an existing structure, 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) categorical exclusions subject to the Federal laws and authorities 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 environmental conditions and do not materially exceed the original scope of the project: (A) Acquisitions of open space or residential property, where such property will be retained 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 Secretary. (B) Conversion of existing office buildings into residential development, subject to— (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, demolition, acquisition, or disposition on 5 to 15 dwelling units where there is a maximum of fifteen 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, demolition, 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 Secretary. (E) Rehabilitation of buildings and improvements in the case of a building for residential 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 construction, rehabilitation, or development of residential housing units. (G) Buyouts, defined as the voluntary acquisition 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 beneficiaries caused or exacerbated by a Federally-declared disaster. 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 Financial 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 respect to revising categorical exclusions or exemptions under title 24, Code of Federal Regulations.