US HB891

HUD Secretary must establish within 120 days a competitive grant and loan pilot program for local housing policy development, with $200 million authorized annually for fiscal years 2026-2031

Three funding mechanisms available to states, localities, tribes, and coalitions: planning grants for developing housing policy plans, implementation grants for executing plans, and direct loans at below-Treasury interest rates

At least 20% of funds must go to rural and exurban areas, with matching requirements ranging from 15-45% based on population size (smaller jurisdictions require lower matches)

Priority given to applicants whose plans increase housing supply near transit and job centers, leverage existing infrastructure, coordinate regionally, reduce barriers to development, and minimize displacement of low-income residents

GSA Administrator must establish a 5-year pilot program to transfer unused federal real property to state and local housing authorities for affordable housing or mixed-use neighborhood development