Strengthening Housing Supply Act of 2025
The Strengthening Housing Supply Act of 2025 would expand the Community Development Block Grant (CDBG) program to explicitly allow the construction of new affordable housing as an eligible activity. It defines affordable housing in line with the Cranston-Gonzalez National Affordable Housing Act and adds new construction to the list of activities that can be funded with CDBG dollars. The bill also broadens the “low- and moderate-income” (LMI) activity requirement to cover new construction (in addition to rehabilitation). Importantly, these changes would apply only to funds appropriated after the enactment date, and the bill was introduced in the House by Representative Maxine Waters and referred to the Committee on Financial Services. In short, the bill seeks to use CDBG funds more directly to increase the supply of affordable housing by permitting and prioritizing new construction, rather than focusing solely on rehabilitation of existing housing, for any future appropriations.
Key Points
- 1Expands eligible CDBG activities to include new construction of affordable housing (defined by the NAHA standard referenced in the bill).
- 2Aligns the definition of affordable housing with federal law (Cranston-Gonzalez NAHA, 42 U.S.C. 12745) for purposes of CDBG eligibility.
- 3Updates the low- and moderate-income (LMI) requirement to include new construction alongside rehabilitation (i.e., activities funded with CDBG must principally benefit LMI households and may now include new construction).
- 4Applies the amendments only to amounts appropriated after the enactment date (not retroactively for funds already allocated).
- 5Maintains the overall structure of the CDBG program and HUD administration, with changes focused on eligible uses and income targeting.