Project Turnkey Act

Bill Number

H.R. 1042

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Housing and Community Development

Status

Introduced

Latest Action

2025-02-06: Referred to the House Committee on Financial Services.

Last Updated

2025-06-05T08:06:52Z

AI-Generated Summary

Purpose of the Legislation

The Project Turnkey Act aims to address homelessness and housing shortages by creating a new federal program that repurposes vacant hotels, motels, and other properties into affordable housing and shelter units. It amends the HOME Investment Partnerships Act (a law that provides federal funding for affordable housing) to establish the Project Turnkey Program, which funds activities to quickly increase shelter capacity and support vulnerable populations nationwide.

Key Provisions

• Program Establishment: The U.S. Department of Housing and Urban Development (HUD) Secretary will award grants through the Project Turnkey Program to eligible entities for specific housing and shelter activities.
• Fund Usage Limits:
• Up to 15% for administrative and planning costs.
• Up to 5% for operating expenses of community housing groups or nonprofits, but only to build their capacity and if they meet federal assistance limits.
• Contracts for supportive services (like counseling or health aid) must cover full program costs and overhead where possible.
• Subgrants and Funding Rules: Public entities can pass funds to others. Funds must supplement (add to), not replace, existing state or local funding.
• Funding Authorization: $1 billion per year is authorized, available until 2035.
• Allocation:
• Most funds distributed via a formula to entities that received HOME allocations in fiscal year 2025.
• $25 million for technical assistance and capacity building.
• Up to $50 million for HUD's administration.
• Waivers and Exemptions: HUD can waive or modify certain rules from related housing laws (like the Cranston-Gonzalez National Affordable Housing Act and McKinney-Vento Homeless Assistance Act) to speed up fund use, but not rules on fair housing, nondiscrimination, labor standards, or environmental protections. Exemptions also apply to cost limits, commitment timelines, matching funds, and set-asides for community groups.
• Definitions:
• Qualifying Individuals or Families: People who are homeless, at risk of homelessness, fleeing domestic violence/sexual assault/stalking/human trafficking, or homeless youth/children (using definitions from existing federal laws).
• Eligible Entities: States, cities, counties, territories, public housing agencies, Continuum of Care program sponsors, nonprofits providing housing, community development corporations, or community development financial institutions.
• Eligible Activities: Rental assistance (rent, security deposits, utilities); investments in affordable housing; supportive services (e.g., counseling, homelessness prevention); acquiring, developing, or operating non-congregate (private room) shelters or affordable rentals; rehabilitating or converting vacant properties (hotels, motels, schools, hospitals, offices) into housing/shelter; repairing/expanding shelters; or other HUD-approved uses.
• Hotels and Motels: Defined under the Americans with Disabilities Act as places no longer in active commerce (i.e., vacant or closed).

Significant Changes to Existing Law

• Adds a new section (272) to Subtitle E of the HOME Investment Partnerships Act, introducing a dedicated program with targeted funding for rapid property conversion—something not previously specified in the HOME Act.
• Exempts Project Turnkey funds from several HOME Act requirements (e.g., cost caps, matching funds, and timelines), allowing more flexibility than standard affordable housing programs.
• Incorporates waivers from parts of the McKinney-Vento Act (which funds homeless assistance) and other housing laws, enabling faster implementation without altering core protections like fair housing rules.
• Authorizes new, substantial annual funding ($1 billion) specifically for shelter expansion and property reuse, separate from general HOME appropriations.

Potential Impacts

• Government Agencies: HUD will gain new administrative responsibilities, including grant allocation, technical assistance, and waiver approvals, potentially increasing workload but with dedicated funding ($50 million annually). Local governments and public housing agencies may see streamlined processes for housing projects.
• Citizens: Could provide immediate housing relief for homeless individuals, families at risk, domestic violence survivors, and youth, increasing access to rental aid, shelters, and supportive services. May lead to more affordable units by converting underused properties, benefiting low-income communities.
• International Relations: No direct impacts, as the bill focuses on domestic housing policy.

Main Stakeholders Affected

• Eligible Entities: States, local governments, public housing agencies, nonprofits, community development groups, and financial institutions that can apply for and use funds.
• Qualifying Individuals and Families: Homeless people, those at risk of homelessness, victims of violence or trafficking, and homeless youth/children who may gain access to shelter, housing, and services.
• HUD and Federal Government: Oversees program implementation, funding distribution, and waivers.
• Property Owners: Owners of vacant hotels, motels, or other buildings may benefit from opportunities to sell or lease for conversion.

Notable Legal, Constitutional, or Political Implications

• Legal: Enhances flexibility in federal housing law by allowing waivers, which could accelerate responses to housing crises but requires HUD to justify them based on necessity. Maintains protections against discrimination and environmental harm, aligning with existing civil rights and regulatory standards.
• Constitutional: No apparent challenges; the bill operates within Congress's spending power under Article I and supports the general welfare by addressing homelessness—a public policy issue without infringing on individual rights.
• Political: Represents a targeted investment in social services amid ongoing debates on homelessness and affordable housing. The $1 billion annual authorization could spark discussions on federal spending priorities, potentially influencing future budgets or bipartisan support for urban development initiatives.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Bonamici, Suzanne [D-OR-1]

Cosponsors (15)

Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Tlaib, Rashida [D-MI-12], Rep. Salinas, Andrea [D-OR-6], Rep. Garcia, Robert [D-CA-42], Rep. Ramirez, Delia C. [D-IL-3], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Amo, Gabe [D-RI-1], Rep. Jacobs, Sara [D-CA-51], Rep. Cherfilus-McCormick, Sheila [D-FL-20], Rep. Ansari, Yassamin [D-AZ-3], Rep. Hoyle, Val T. [D-OR-4], Rep. Peters, Scott H. [D-CA-50], Rep. Balint, Becca [D-VT-At Large], Rep. Dexter, Maxine [D-OR-3], Rep. Hayes, Jahana [D-CT-5]

Recent Actions

• 2025-02-06: Referred to the House Committee on Financial Services.
• 2025-02-06: Introduced in House
• 2025-02-06: Introduced in House

Bill Versions

• Project Turnkey Act — issued 2025-02-06 — PDF (8 pages)