US HB3952

Authorizes HUD to award competitive grants to local governments, public housing agencies, and nonprofit entities to transform severely distressed public and assisted housing in neighborhoods of extreme poverty into sustainable mixed-income communities

Requires one-for-one replacement of all demolished or disposed public and assisted housing units, with at least one-third built on or near the original site and a minimum 30-year affordability period for replacement housing

Guarantees displaced residents the right to return to revitalized housing, provides relocation assistance including Section 8 vouchers, moving costs, and 150-day housing search periods, and requires ongoing monitoring of displaced households

Authorizes $1 billion for fiscal year 2026 for grants (with at least 80% for public housing), plus additional funding for rental assistance, with up to 10% available for planning grants and 5% for technical assistance

Mandates transformation plans include supportive services promoting self-sufficiency, connections to educational opportunities and public transportation, energy-efficient design, and resident involvement throughout planning and implementation