S 2390119th CongressIn Committee

Unlocking Housing Supply Through Streamlined and Modernized Reviews Act

Introduced: Jul 23, 2025

Sponsor: Sen. Rounds, Mike [R-SD] (R-South Dakota)

Housing & Urban Development

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Unlocking Housing Supply Through Streamlined and Modernized Reviews Act would require HUD to reclassify a broad set of housing-related activities under the National Environmental Policy Act (NEPA) so they are treated with much lighter environmental review—essentially exempt or similar to categorical exclusions. The goal is to speed up housing development, especially affordable and infill projects, by reducing time and costs associated with NEPA analyses. The bill provides specific categories of housing activities that would receive this streamlined treatment, including tenant-based rental assistance, supportive services, operating costs, homebuyer assistance, and various levels of construction and rehabilitation, depending on project size and characteristics. The act also requires an annual five-year reporting process on the impact of these changes. In short, if enacted, the bill would significantly accelerate certain HUD housing activities by moving many projects into exemptions or minimal environmental review, while still aiming to limit environmental impact to the extent possible through defined thresholds and site criteria.

Key Points

1NEPA reclassification for HUD housing activities: HUD must expand and reclassify housing-related actions under NEPA so they receive exemption-like or similar treatment to reduce review time and costs.
2Broad set of activities covered: Includes tenant-based rental assistance, supportive services, operating costs, economic development tied to housing, homebuyer assistance, pre-development costs, supplemental project protections, and emergency assistance for utilities.
3Multiple tiers of exemptions based on activity type and scale:
4- Some activities would be treated as exemptions similar to what existed in 24 CFR 58.34 as of Jan 1, 2025 (e.g., certain non-structural or non-site-changing actions).
5- Other activities would be treated as categorical exclusions that do not materially alter environmental conditions or exceed original project scope (with specific size/impact thresholds).
6- Additional activities would be subject to categoricals with more conditions, including limits on unit counts, site limits, density, and the nature of the project (e.g., infill, scattered-site development, open-space conversions, buyouts in disaster-impacted areas).
7Infill project definition: Defines infill as development within a municipality, on previously disturbed land of up to 5 acres, surrounded by existing development, served by utilities, and repurposing land or structures for residential or commercial use.
8Specific unit-count thresholds and site rules:
9- Rehab or redevelopment up to 4 housing units (or related small-scale improvements) may qualify under simpler exclusions.
10- New construction or acquisition on small scales (up to 4 scattered-site units; 5-15 units with a cap per site; 15+ units on scattered sites with spacing requirements) have defined thresholds.
11- Certain conversions (e.g., office-to-residential) and rehabilitation of 5-15 unit buildings with density limits are covered under tailored exclusions.
12Buyouts in disaster-impacted areas: The bill includes a provision for buyouts of properties in floodways, floodplains, or other disaster-affected areas to relocate residents, within the streamlined framework.
13Reporting requirement: The Secretary must deliver an annual report for five years (beginning two years after enactment) to Congress detailing reductions in review times and administrative costs, with emphasis on the affordable housing sector, and provide recommendations on future changes to exclusions or exemptions under CFR regulations.

Impact Areas

Primary group/area affected- HUD programs and housing developers/builders engaged in affordable housing, new construction, rehabilitation, and homebuyer assistance.- Local governments and municipalities implementing HUD-funded housing projects, since streamlined NEPA review could shorten project timelines.Secondary group/area affected- Tenants, homebuyers, and residents benefiting from faster delivery of affordable housing and housing-related services.- Environmental compliance and advocacy communities concerned about potential reductions in NEPA scrutiny and public participation.Additional impacts- Public costs and timelines: Potentially lower upfront planning costs and shorter development timelines for eligible housing projects.- Environmental oversight: A shift toward lighter NEPA review for certain housing activities may reduce formal environmental assessments, feedback opportunities, and documented environmental protections for those projects.- Administrative and regulatory alignment: Requires HUD to adopt CFR-based categories as of 2025, which may necessitate updates to agency implementing regulations and interagency coordination.- Accountability and monitoring: The annual reporting requirement aims to track the impact on review times and costs and guide future policy adjustments.NEPA basics: NEPA requires federal agencies to assess environmental effects of proposed actions. Exemptions and categorical exclusions are formal mechanisms to avoid full environmental impact statements or environmental assessments when projects have minimal potential for significant environmental impact. This bill leverages those mechanisms to speed housing delivery.Baseline references: The bill uses “as in effect on January 1, 2025” CFR provisions for exemptions and exclusions, meaning the current regulatory framework as of that date serves as the benchmark for the reclassification.

Generated by gpt-5-nano on Oct 8, 2025