RESIDE Act
- Bill Number
- S. 2460
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-07-24: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-12-16T16:29:18Z
AI-Generated Summary
Purpose
The RESIDE Act (S. 2460) aims to address housing shortages and urban blight by establishing a temporary pilot program that repurposes vacant and abandoned commercial or industrial buildings—such as warehouses, factories, malls, or hotels—into attainable housing. "Attainable housing" refers to homes affordable to households earning up to 100% or 120% of the local area median income, with a focus on lower-income groups. The program runs from fiscal years 2027 through 2031 and uses excess funding from the existing HOME Investment Partnerships Program (a federal initiative for affordable housing and community development) to fund conversions.
Key Provisions
- Funding and Eligibility: If annual funding for the HOME program exceeds $1.35 billion, up to $100 million of the surplus can be allocated competitively to "eligible entities" (states, local governments, or other participating jurisdictions under the HOME program). Grants range from $1 million to $10 million per recipient when full funding is available; with less funding, the focus shifts to awarding more smaller grants.
- Definition of Target Buildings: Focuses on "vacant and abandoned buildings" that are unsafe (per code inspections), where owners have ignored notices for at least 90 days, or that are under court-ordered receivership or nuisance abatement due to abandonment under state or local law.
- Priorities for Awards: Preference goes to projects in economically distressed areas, qualified opportunity zones (federally designated low-income areas for economic incentives), those aligning with local housing plans (called "consolidated plans"), or jurisdictions that have reduced non-safety regulations to ease property conversions.
- Allowed Uses of Funds:
- Acquiring properties.
- Demolishing unsafe structures.
- Remediating health hazards (e.g., removing toxins like lead or asbestos).
- Preparing sites for development.
- Constructing, renovating, or rehabilitating buildings into housing.
- Supporting community land trusts (nonprofit organizations that hold land to keep housing affordable long-term).
- Requirements and Flexibility: Converted housing must follow HOME program rules for renting, selling, and reselling to ensure affordability. The Secretary of Housing and Urban Development (HUD) can waive or modify certain federal rules (excluding fair housing, nondiscrimination, labor standards, or environmental protections) if there's good cause, to streamline the process.
- Evaluation: HUD must study the program's effects and report to Congress within 180 days after it ends, assessing benefits like improved local tax revenues, better access to affordable housing (especially for elderly, disabled, and veteran households), increased homeownership, and blight reduction.
Significant Changes to Existing Law
- Introduces a new "Blighted Building to Housing Conversion Program" as a pilot add-on to the HOME Investment Partnerships Program, without altering HOME's core formula-based funding allocations to jurisdictions.
- Allows repurposing of excess HOME funds specifically for commercial-to-residential conversions, which isn't a standard use under current HOME rules.
- Provides HUD with targeted waiver authority for administrative hurdles, promoting faster conversions while preserving key protections.
Potential Impacts
- Government Agencies: HUD gains responsibility for administering grants, prioritizing awards, and conducting evaluations, potentially increasing workload but also leveraging existing HOME infrastructure. Local governments (eligible entities) receive extra funding without reducing their baseline HOME allocations.
- Citizens: Could expand affordable housing options for low- and moderate-income households, including vulnerable groups like seniors, people with disabilities, and veterans, helping address shortages in high-cost or blighted areas. May boost homeownership rates through conversions.
- Communities: Aims to revitalize declining neighborhoods by removing eyesores (blight), improving safety, and enhancing local tax bases through new housing and economic activity. No direct international relations impacts, as this is a domestic housing initiative.
- Broader Economy: Supports development in opportunity zones and distressed areas, potentially spurring job creation in construction and maintenance.
Main Stakeholders Affected
- Eligible Entities: State and local governments, including cities and counties participating in the HOME program, who apply for and manage grants.
- Low-Income Households: Primary beneficiaries, gaining access to attainable housing in converted buildings.
- Communities in Blighted Areas: Residents and businesses in economically distressed or opportunity zones, who may see improved environments and economic revitalization.
- HUD and Federal Government: Oversees implementation, funding, and reporting.
- Property Owners and Developers: Indirectly affected through acquisition or receivership processes for abandoned buildings; community land trusts as potential fund users.
Notable Legal, Constitutional, or Political Implications
- Legal: Builds on the Cranston-Gonzalez National Affordable Housing Act (which governs HOME) without major overhauls, ensuring continuity. Waiver authority could accelerate projects but requires public justification to avoid arbitrary decisions; maintains safeguards for fair housing (preventing discrimination) and environmental reviews.
- Constitutional: Aligns with Congress's spending power under the Constitution to promote general welfare through housing programs; no apparent conflicts with property rights, as it targets already-abandoned or unsafe properties under existing state/local laws.
- Political: Represents a bipartisan effort (introduced by Senators Banks and Warner) to tackle urban decay and housing affordability amid national shortages. The pilot's time-limited nature allows testing before potential expansion, but funding dependency on HOME surpluses could limit scalability if budgets tighten. May encourage states and localities to reform zoning (reducing barriers) to compete for grants, influencing local policy debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-07-24: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-07-24: Introduced in Senate
Bill Versions
- Revitalizing Empty Structures Into Desirable Environments Act — issued 2025-07-24 — PDF (7 pages)