Build HUBS Act
- Bill Number
- H.R. 7062
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Transportation and Public Works
- Status
- Introduced
- Latest Action
- 2026-01-15: Referred to the Subcommittee on Highways and Transit.
- Last Updated
- 2026-06-03T08:08:52Z
AI-Generated Summary
Purpose
The Build Housing, Unlock Benefits and Services Act (Build HUBS Act), H.R. 7062, aims to address the U.S. housing affordability crisis by enhancing federal financing programs for transit-oriented development (TOD) projects. These are developments near public transit that include housing, commercial spaces, or mixed uses to increase access to affordable homes, boost economic growth, and support transit ridership. The bill modifies existing transportation financing programs to make them more efficient and accessible, particularly for smaller communities and projects focused on attainable housing (affordable options for lower- and moderate-income households).
Key Provisions
- Program Extensions: Extends funding and authorization for the Transportation Infrastructure Finance and Innovation Act (TIFIA) program (under Title 23, U.S. Code) and the Railroad Rehabilitation and Improvement Financing (RRIF) program (under Title 49, U.S. Code) through fiscal years 2027–2031.
- New Definitions:
- Transit-oriented development (TOD) project: A development within a half-mile walk of fixed-guideway transit (e.g., rail or bus rapid transit), passenger rail stations, or multimodal facilities. It must include residential, commercial, or mixed-use elements; involve private investment; and generate new revenue (e.g., via increased ridership or leases) for transit services.
- Transportation-oriented development project: Similar to TOD but specifically tied to rail services under RRIF.
- Attainable housing project: A TOD or transportation-oriented project serving households up to 120% of area median income, with most units affordable to those at or below 80% of area median income.
- Investment-creditworthiness assessment alternative: A way to prove a project's financial stability without needing a full investment-grade credit rating (e.g., joint liability with a state/local government or certification for smaller loans up to $150 million).
- Eligibility and Selection Rules (for both TIFIA and RRIF):
- Projects must coordinate with metropolitan planning organizations (regional groups that plan transportation) by sharing details on impacts and mitigation.
- Evidence of alignment with local or state transportation plans is required.
- For attainable housing projects, at least 75% of TIFIA assistance must go toward residential components.
- Financing Adjustments:
- Allows loans up to 75% of project costs for TODs with significant housing or partnerships (e.g., with transit agencies or nonprofits).
- Offers reduced interest rates: Half the U.S. Treasury rate for attainable housing projects.
- Permits lines of credit and loan guarantees without requiring investment-grade ratings if alternatives are used.
- Prohibits most fees for RRIF loans, with public disclosure of any applicable ones.
- Streamlined Processes:
- Establishes delegated origination and underwriting programs for TOD and transportation-oriented projects, modeled on the Department of Housing and Urban Development's (HUD) Multifamily Accelerated Processing system. Approved private lenders (originator-servicers) can handle loan approvals and servicing under Department of Transportation (DOT) oversight, reducing processing time.
- Requires DOT to issue regulations within 180 days, including interagency agreements with HUD for efficiency.
- Public guidance on requirements like debt coverage ratios (how well a project can repay loans) and loan-to-value thresholds (loan size relative to project worth).
- Environmental Streamlining:
- Exempts pre-award land acquisition from the National Environmental Policy Act (NEPA, a law requiring environmental reviews) for most TOD projects, except publicly owned components.
- Provides categorical exclusions (automatic NEPA waivers) for activities like rehabilitating existing buildings or building on previously disturbed transportation land.
- Other Requirements: TOD projects must meet transit labor standards (e.g., fair wages under Section 5333 of Title 49). The bill includes a savings clause preserving state and local zoning laws.
Significant Changes to Existing Law
- From Prior Authorizations: Builds on the Fixing America's Surface Transportation (FAST) Act (2015) and Infrastructure Investment and Jobs Act (2021), which already allowed TIFIA and RRIF to finance TOD with housing but imposed strict credit rating requirements and lengthy processes. This bill removes or alternatives those ratings, extends timelines beyond 2026, and adds delegated lending to speed up approvals.
- Credit and Risk Standards: Replaces mandatory investment-grade ratings with flexible alternatives, lowering barriers for smaller or non-traditional projects.
- Interest Rates and Loan Limits: Introduces subsidized rates for affordable housing and caps assistance at 75% for housing-focused TODs, differing from prior uniform rates.
- New Programs: Creates dedicated delegated underwriting tracks for TOD under both TIFIA (new Section 612 of Title 23) and RRIF (new subsection in Section 22402 of Title 49), inspired by HUD models.
- NEPA Adjustments: Expands exemptions beyond current rules, focusing on urban redevelopment to accelerate housing near transit.
Potential Impacts
- On Government Agencies: DOT gains efficiency through delegated lending and HUD partnerships, potentially reducing administrative burdens and processing times (e.g., from years to months). However, it must implement new regulations and oversight, increasing short-term workload.
- On Citizens: Improves access to affordable housing near transit, benefiting lower-income households (up to 120% of area median income) by spurring development in underserved areas. Could enhance community vitality, job access, and transit use, but benefits depend on local adoption.
- On International Relations: None directly; the bill focuses on domestic transportation and housing.
- Broader Effects: Encourages public-private partnerships, potentially accelerating housing production nationwide, especially in smaller communities. May reduce environmental review delays but could raise concerns about oversight in land use.
Main Stakeholders Affected
- Federal Agencies: DOT (administers TIFIA and RRIF), HUD (provides lending model and interagency support).
- State and Local Governments: Metropolitan planning organizations, transit agencies, and units of local government involved in coordination, liability agreements, and project approvals.
- Private Sector: Developers, private investors, and approved originator-servicers (lenders) who can now access faster financing for TOD projects.
- Citizens and Communities: Low- and moderate-income households gaining affordable housing options; transit users benefiting from increased ridership and revenue; neighborhoods near transit stations seeing revitalization.
- Nonprofits: Housing and community development groups partnering on attainable housing projects.
Notable Legal, Constitutional, or Political Implications
- Legal: Streamlines NEPA without fully repealing it, potentially reducing litigation over environmental reviews while maintaining exemptions for public lands. The savings provision avoids federal preemption of local zoning, respecting state authority under the 10th Amendment (which reserves powers to states). Labor standards ensure compliance with federal transit protections.
- Constitutional: No direct challenges; promotes interstate commerce (via transportation) and general welfare (affordable housing) under Congress's powers, without infringing on property rights.
- Political: Advances bipartisan goals of housing affordability and infrastructure investment, but could spark debate on environmental deregulation or favoritism toward urban transit over rural needs. Encourages equity by prioritizing attainable housing, aligning with broader policy pushes for inclusive development.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Friedman, Laura [D-CA-30]
Cosponsors (3)
Rep. Lawler, Michael [R-NY-17], Rep. Garbarino, Andrew R. [R-NY-2], Rep. Peters, Scott H. [D-CA-50]
Recent Actions
- 2026-01-15: Referred to the Subcommittee on Highways and Transit.
- 2026-01-15: Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
- 2026-01-14: Referred to the House Committee on Transportation and Infrastructure.
- 2026-01-14: Introduced in House
- 2026-01-14: Introduced in House
Bill Versions
- Build Housing, Unlock Benefits and Services Act — issued 2026-01-14 — PDF (29 pages)