FRAMER Act
- Bill Number
- H.R. 7282
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2026-01-30: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-02-24T09:06:02Z
AI-Generated Summary
Purpose
The FRAMER Act aims to promote affordable housing in designated "opportunity zones" (economically distressed areas targeted for investment) by discouraging states from adopting energy efficiency standards for residential buildings that exceed a federal baseline. It does this by requiring states to reimburse builders for extra costs if they want to continue receiving certain federal housing development funds, thereby reducing financial burdens on housing construction.
Key Provisions
- Reimbursement Requirement: Starting 90 days after enactment, states must reimburse builders of qualifying residential units (called "covered dwelling units," which are single-family homes or small multifamily buildings) in opportunity zones. The reimbursement covers the difference between the costs of complying with the state's energy code and the costs of meeting the U.S. Department of Housing and Urban Development's (HUD) Minimum Energy Standard (a basic federal guideline for energy efficiency in housing).
- Payments must be made within 30 days after the unit passes inspection and is certified for occupancy.
- HUD determines the cost differences.
- Exception: No reimbursement is required if the state's energy code is less expensive than HUD's standard.
- Disclosure to Buyers: Builders who receive or expect reimbursements must provide the first buyer with a standardized disclosure form (created by HUD). This form explains the cost difference between the state code and HUD's standard, and details any reimbursements received and how they affected the unit's price.
- Reporting: The U.S. Government Accountability Office (Comptroller General) must submit annual reports to Congress listing states that made payments, the amounts (broken down by cities, counties, states, and other local areas), and the cost differences in those areas.
- Temporary Nature: The new requirements sunset (expire) 7 years after enactment.
Significant Changes to Existing Law
- Amends Section 104 of the Housing and Community Development Act of 1974 (which governs the Community Development Block Grant program, providing federal funds to states and localities for housing and community projects).
- Adds a new subsection (n) that conditions a state's eligibility for these federal funds on complying with the reimbursement rule for opportunity zone projects. This is the primary change, linking federal funding to state energy code policies in specific zones.
Potential Impacts
- Government Agencies: States and local governments (e.g., cities and counties) may face increased administrative burdens and budget strains from reimbursing builders, potentially leading them to revise energy codes to match HUD's standard and avoid costs. HUD gains a role in calculating cost differences and creating disclosure forms. The Government Accountability Office must produce ongoing reports, adding to federal oversight.
- Citizens: Builders in opportunity zones benefit from reimbursements, which could lower construction costs and make new housing more affordable in underserved areas. Home buyers receive transparency about energy costs and any price reductions from reimbursements, aiding informed decisions. Overall, it may increase housing supply and affordability in targeted zones but could slow adoption of stricter state energy standards, affecting long-term energy savings for residents.
- International Relations: No direct impacts, as the bill focuses on domestic housing and energy policies.
Main Stakeholders Affected
- States and Local Governments: Must implement reimbursements or risk losing federal block grant funds; includes metropolitan cities, urban counties, and insular areas (U.S. territories).
- Housing Builders and Developers: Receive financial relief for excess energy code compliance costs in opportunity zones.
- Home Buyers and Residents: Gain potential affordability benefits and disclosures, particularly in low-income or revitalization areas.
- Federal Agencies: HUD (cost determinations and forms) and the Government Accountability Office (reporting).
Notable Legal, Constitutional, or Political Implications
- Legal: Ties federal funding to state compliance, a common congressional tool under the Spending Clause of the U.S. Constitution (which allows Congress to attach conditions to federal grants). However, it could invite lawsuits if states argue the requirements are overly burdensome or infringe on their traditional authority over building codes.
- Constitutional: Likely constitutional as a conditional spending program, but might raise Tenth Amendment concerns (reserving powers to states) if viewed as coercive federal overreach into local regulations.
- Political: Encourages deregulation of state energy policies to prioritize housing affordability over stricter environmental standards, potentially appealing to pro-business interests while drawing criticism from environmental advocates for weakening energy efficiency goals. The 7-year sunset provides a trial period for evaluation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Evans, Gabe [R-CO-8], Rep. Boebert, Lauren [R-CO-4]
Recent Actions
- 2026-01-30: Referred to the House Committee on Financial Services.
- 2026-01-30: Introduced in House
- 2026-01-30: Introduced in House
Bill Versions
- Freeing Residential Affordable Markets from Excess Regulation Act — issued 2026-01-30 — PDF (5 pages)