Workforce Housing Development Act

Bill: 118-hr-5733
Sponsor: full_name: Rep. Slotkin, Elissa [D-MI-7]
Introduced: 2023-09-26
Policy area: Housing and Community Development
Subjects: Congressional oversight

Housing and community development funding

Housing finance and home ownership

Housing supply and affordability
Latest action: action_date: 2023-09-26
text: Referred to the House Committee on Financial Services.

Summaries:

tv_txt: I 118th CONGRESS 1st Session H. R. 5733 IN THE HOUSE OF REPRESENTATIVES September 26, 2023 Ms. Slotkin introduced the following bill; which was referred to the Committee on Financial Services A BILL To establish a competitive grant program at the Department of Housing and Urban Development to support the construction, preservation, or rehabilitation of affordable workforce housing in areas with shortages of affordable housing units for sale, and for other purposes.

1. Short title This Act may be cited as the Workforce Housing Development Act . 2. Competitive grant program to support workforce housing units (a) Definitions In this section: (1) Affordable The term affordable , with respect to a workforce housing unit, means that the total housing costs for the unit do not exceed 30 percent of the income of the buyer of the workforce housing unit. (2) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Banking, Housing, and Urban Affairs of the Senate; and (B) the Committee on Financial Services of the House of Representatives. (3) Dwelling The term dwelling means any building, structure, or portion thereof that is occupied as, or designed or intended for occupancy as, a residence by 1 or more individuals. (4) Eligible entity The term eligible entity means— (A) a State or unit of local government; (B) a nonprofit housing developer; (C) an agency or instrumentality of a State; (D) a public housing agency; (E) a community development financial institution, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4702 ); (F) a resident-owned community; and (G) any other entity that supports housing development, as determined by the Secretary. (5) First-time homebuyer The term first-time homebuyer has the meaning given the term in section 104 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12704 ). (6) Nonprofit housing developer The term nonprofit housing developer means a nonprofit organization having as one of its principal purposes the creation, development, or preservation of housing, including a subsidiary of a public housing agency. (7) Program The term Program means the grant program established under this section. (8) Public housing agency; State The terms public housing agency and State have the meanings given those terms in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) ). (9) Secretary The term Secretary means the Secretary of Housing and Urban Development. (10) Total housing costs The term total housing costs means mortgage principal and interest, taxes, and insurance. (11) Workforce housing unit The term workforce housing unit means a 1- to 4-unit dwelling— (A) that is the primary residence of the buyer; (B) in which none of the units are rented; and (C) that is affordable to buyers with incomes of not more than 100 percent of the area median income. (b) Establishment The Secretary shall establish a competitive grant program to award grants to eligible entities to increase the supply of affordable workforce housing units. (c) Use of funds A recipient of a grant under the Program shall use grant funds for the construction, preservation, or rehabilitation of workforce housing units, which shall remain affordable for a period of not less than 5 years from the sale of the workforce housing unit. (d) Application and selection process (1) Application An eligible entity desiring a grant under the Program shall submit to the Secretary an application at such time, in such manner, and containing— (A) a description of the construction, preservation, or rehabilitation projects to be supported by the grant; and (B) any additional information as the Secretary may require. (2) Selection of grantees (A) In general The Secretary shall establish criteria to award grants under the Program on a competitive basis, which may include consideration of whether— (i) the median price of workforce housing units in the area to be served by the grant is increasing; (ii) the supply of available workforce housing units in the area to be served by the grant is decreasing; and (iii) whether employers in the area to be served by the grant are struggling to recruit employees due to the lack of affordable housing options. (B) Priority The Secretary shall prioritize awarding grants to eligible entities that demonstrate a lack of affordable workforce housing units in the area to be served by the grant. (e) Report to Congress Not later than 1 year after the date of enactment of this Act, and each year thereafter, the Secretary shall submit to the appropriate congressional committees a report on the implementation of the Program, which shall include— (1) a list of grant recipients and the amount awarded to each grant recipient; (2) a description of the projects assisted using grant funds, including the number of affordable workforce housing units created, preserved, and rehabilitated under the Program; (3) a description of the households that purchased homes assisted under the Program, including the number of first-time homebuyers; and (4) any other metrics that the Secretary determines necessary. (f) Workforce Housing Development Fund (1) In general There is established in the Treasury a fund to be known as the Workforce Housing Development Fund to carry out the Program. (2) Authorization of appropriations There is authorized to be appropriated and deposited into the fund established under paragraph (1) such sums as may be necessary for fiscal year 2024 and each fiscal year thereafter.