RESIDE Act
- Bill Number
- H.R. 5591
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-09-26: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-06-11T23:26:31Z
AI-Generated Summary
Purpose of the Legislation
The RESIDE Act (H.R. 5591) aims to create a temporary pilot program to repurpose vacant and abandoned commercial or industrial buildings—often called "blighted" properties—into affordable housing. By using federal funds, it seeks to address urban decay, increase housing availability for moderate-income families, and revitalize communities without disrupting existing housing programs.
Key Provisions
- Pilot Program Structure: Known as the Blighted Building to Housing Conversion Program, it runs from fiscal years 2027 through 2031. If funding for the existing HOME Investment Partnerships Program (a federal initiative that provides grants for affordable housing and community development) exceeds $1.35 billion in a given year, up to $100 million of the excess can be used for competitive grants under this pilot.
- Eligibility and Grants: Grants go to "eligible entities," which are state and local governments or other participating jurisdictions already involved in the HOME program. Each grant ranges from $1 million to $10 million. If less than $100 million is available in a year, the focus shifts to awarding as many grants as possible. These grants are additional and do not reduce an entity's regular HOME funding.
- Definition of Key Terms:
- Attainable housing: Housing affordable to households earning up to 100% or 120% of the local area median income (AMI), with most units targeted at lower thresholds (80% or 60% of AMI). AMI is a measure of typical household income in a specific area.
- Vacant and abandoned building: Properties originally built for commercial or industrial use (e.g., warehouses, factories, malls, hotels) that are unsafe per code inspections, ignored by owners for at least 90 days after notice, or under court-ordered receivership (a legal process where a receiver manages a neglected property) due to abandonment.
- Converted housing unit: Any new housing created with pilot grant funds.
- Priorities for Awards: Preference is given to projects in economically distressed areas, qualified opportunity zones (designated low-income areas eligible for tax incentives to spur investment), locations addressing needs outlined in local housing plans (called "consolidated plans"), or places with local rules that ease conversion of commercial properties to housing without compromising safety standards.
- Allowed Uses of Funds: Grants can cover buying properties, demolition, fixing health hazards (like mold or contamination), preparing sites, building or renovating structures, or supporting community land trusts (nonprofit organizations that hold land to keep housing affordable long-term).
- Requirements and Flexibility: Converted units must follow HOME program rules for renting, selling, and reselling to ensure affordability. The Secretary of Housing and Urban Development (HUD) can waive or adjust certain federal rules (e.g., paperwork requirements) if there's good cause, but cannot waive protections for fair housing, nondiscrimination, worker rights, or environmental standards.
- Evaluation: After the program ends, HUD must study its effects and report to Congress within 180 days, covering improvements to local tax revenues, affordable housing access (especially for seniors, people with disabilities, and veterans), homeownership rates, and blight reduction.
Significant Changes to Existing Law
This bill introduces a new pilot program layered onto the HOME Investment Partnerships Program (established by the Cranston-Gonzalez National Affordable Housing Act of 1990), which funds affordable housing but does not specifically target blighted commercial conversions. Key changes include:
- Redirecting up to $100 million annually from excess HOME funds for this purpose, without cutting standard allocations.
- Adding priorities like opportunity zones and regulatory barrier reductions, which are not core to the original HOME framework.
- Granting HUD waiver authority for non-essential rules to speed up conversions, a flexibility not explicitly outlined in the base HOME law.
These additions expand HOME's scope temporarily but maintain its core affordability and oversight requirements.
Potential Impacts
- On Government Agencies: HUD gains responsibility for administering the pilot, including grant competitions, waivers, and a required study/report. This could strain resources if funding exceeds thresholds but also leverages existing HOME infrastructure. Local governments may see streamlined processes for housing projects.
- On Citizens: Increases supply of attainable housing in blighted areas, potentially benefiting moderate-income households (up to 120% AMI), including vulnerable groups like the elderly, disabled, and veterans, by providing more rental and ownership options. It could reduce unsafe conditions from abandoned buildings and boost neighborhood safety and property values.
- On International Relations: No direct impacts, as the bill focuses on domestic housing and urban policy.
- Broader Effects: Communities could experience economic uplift through blight removal and tax base growth, but success depends on local participation and funding availability.
Main Stakeholders Affected
- Eligible Entities: State and local governments participating in HOME, who apply for and manage grants.
- Low- and Moderate-Income Households: Primary beneficiaries, gaining access to affordable housing converted from underused buildings.
- Community Organizations: Including community land trusts and developers focused on revitalization.
- HUD and Federal Government: Oversees implementation and evaluation.
- Local Communities and Businesses: Impacted by reduced blight, improved tax revenues, and potential economic development in distressed or opportunity zones.
- Property Owners: May face incentives or pressures to address abandoned properties through conversions or legal actions like receivership.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Builds directly on the HOME Act, ensuring continuity in affordability rules while introducing targeted waivers to reduce bureaucratic hurdles—potentially accelerating projects but requiring public justification to avoid challenges. The focus on "attainable housing" aligns with federal affordable housing goals but uses flexible AMI thresholds that could invite scrutiny on equity.
- Constitutional Implications: Involves federal spending under Congress's spending power (Article I, Section 8), with no apparent conflicts to equal protection or property rights, as it emphasizes voluntary conversions and preserves safety/environmental standards. Court-ordered receiverships reference state laws, respecting federalism.
- Political Implications: Sponsored by bipartisan lawmakers, it addresses housing shortages and urban blight without mandating new spending, relying on excess funds to appeal across party lines. The pilot's time-limited nature and required congressional report allow for future adjustments based on results, potentially influencing broader housing policy debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Liccardo, Sam T. [D-CA-16]
Cosponsors (4)
Rep. Salazar, Maria Elvira [R-FL-27], Rep. Olszewski, Johnny [D-MD-2], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Sorensen, Eric [D-IL-17]
Recent Actions
- 2025-09-26: Referred to the House Committee on Financial Services.
- 2025-09-26: Introduced in House
- 2025-09-26: Introduced in House
Bill Versions
- Revitalizing Empty Structures Into Desirable Environments Act — issued 2025-09-26 — PDF (7 pages)