Identifying Regulatory Barriers to Housing Supply Act
- Bill Number
- S. 2416
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-07-23: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-12-05T21:42:37Z
AI-Generated Summary
Purpose
The Identifying Regulatory Barriers to Housing Supply Act aims to address the U.S. housing shortage by encouraging local governments to identify and reduce overly restrictive land use rules (such as zoning laws that limit housing development). It supports the original goals of the Community Development Block Grant (CDBG) program, which provides federal funding to communities for housing and development projects, by promoting policies that make housing more affordable without mandating specific changes.
Key Provisions
- Submission Requirement: Before receiving certain CDBG grants in any fiscal year, grantees (typically local governments or states) must submit a plan at least once every five years. This plan describes specific land use policies in their jurisdiction, including:
- Whether the policy has already been adopted in the past five years.
- Plans to adopt and implement it.
- Expected benefits to the community.
- List of Covered Policies: The plan must address a standardized set of 22 policies designed to ease housing development barriers, such as:
- Allowing multifamily housing (e.g., apartments) in areas zoned for single-family homes.
- Permitting duplexes, triplexes, or fourplexes in single-family zones.
- Reducing minimum lot sizes or parking requirements.
- Streamlining permitting processes (e.g., one-stop approvals).
- Allowing accessory dwelling units (small secondary homes on the same lot as a primary home).
- Other options like transit-oriented development zones or converting offices to apartments.
- Non-Binding Nature: Submissions do not commit grantees to action and cannot be used for enforcement or as official approval by the federal government.
- Oversight: The Department of Housing and Urban Development (HUD) will prescribe a standardized form via regulations and must maintain staffing to support implementation and assist communities.
Significant Changes to Existing Law
This bill amends Section 104 of the Housing and Community Development Act of 1974 (which outlines CDBG eligibility and planning requirements) by adding a new subsection (n). It introduces a proactive tracking mechanism for land use reforms but does not impose penalties for non-adoption. The changes take effect one year after enactment and apply to all relevant CDBG recipients, regardless of when they received prior funding.
Potential Impacts
- On Government Agencies: HUD will need to develop regulations, process submissions, and provide technical assistance, potentially increasing administrative workload but without enforcement duties. Local grantees may face planning burdens but gain incentives to access federal funds.
- On Citizens: Could lead to more affordable housing options by reducing development barriers, benefiting low- and moderate-income households facing high costs. However, it might spark local debates over neighborhood changes.
- On International Relations: No direct impact, as the bill focuses on domestic housing policy.
Main Stakeholders Affected
- Local Governments and States: Primary grantees under CDBG programs, required to prepare and submit plans.
- U.S. Department of Housing and Urban Development (HUD): Responsible for regulating the process and supporting communities.
- Housing Developers and Builders: Benefit from potential policy reforms that simplify construction.
- Residents and Communities: Especially those in cost-burdened households (spending over 30% of income on housing), who may see improved affordability; property owners could face changes to local zoning.
Notable Legal, Constitutional, or Political Implications
- Legal: The non-binding, non-enforceable nature avoids direct federal overreach into local zoning (a power typically reserved for states and localities under the U.S. Constitution's 10th Amendment). Information from plans cannot trigger lawsuits or penalties, protecting grantees from federal coercion.
- Constitutional: Raises no major challenges, as it incentivizes rather than mandates reforms, aligning with federal spending powers to influence state/local actions without violating federalism principles.
- Political: Bipartisan support (introduced by senators from both parties) highlights housing affordability as a cross-aisle issue. It could encourage broader zoning deregulation debates but might face opposition from those concerned about preserving community character or property values. The bill's findings emphasize economic costs of shortages ($2 trillion annually in lost productivity), framing reforms as a national priority.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (5)
Sen. Schatz, Brian [D-HI], Sen. Cramer, Kevin [R-ND], Sen. Smith, Tina [D-MN], Sen. Lummis, Cynthia M. [R-WY], Sen. Warnock, Raphael G. [D-GA]
Recent Actions
- 2025-07-23: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-07-23: Introduced in Senate
Bill Versions
- Identifying Regulatory Barriers to Housing Supply Act — issued 2025-07-23 — PDF (7 pages)