Empty Lots to Housing Act
The Empty Lots to Housing Act would add a new provision to the federal highway program (Chapter 1 of title 23, U.S.C.). It authorizes the transfer of real property that was acquired in part with assistance under that chapter when the property is no longer needed for the original purpose. Eligible transfers could go to a local government authority, a nonprofit organization, or a third-party entity for the development of transit-oriented dwelling units (TOD). The transfer would be permitted only if certain conditions are met, including a determination that the transfer would provide greater overall public benefit than keeping the property with the government, and that the third-party recipient has a proven track record in affordable housing. The transferee must ensure, for 30 years, substantial affordability commitments: at least 40% of housing units must be reserved for households with income up to 60% of the area median income (AMI), with rents capped at 30% of the apartment-adjusted income; and at least 20% of all units within that 40% must be reserved for households at or below 30% of AMI. The transfer would be allowed with no further obligation to the federal government, and the property would be treated as a transfer for purposes of the chapter’s analysis.
Key Points
- 1Creates new Sec. 180 in Chapter 1 of title 23 (Transfer of real property no longer needed) permitting the transfer of idle property acquired with assistance to TOD-focused entities.
- 2Eligible recipients: (a) a local government authority or nonprofit organization, or (b) a third-party entity for TOD housing, provided specific conditions are met.
- 3Conditions for third-party transfers: (A) a local government or nonprofit cannot receive the property, (B) net public benefit justifies the transfer after considering fair market value and other factors, and (C) the third-party has demonstrated a satisfactory history of affordable housing development or operation.
- 430-year affordability covenant: transferee must require the entity to reserve at least 40% of units for households earning ≤60% AMI, with rents limited to 30% of the residents’ adjusted income; within that 40%, at least 20% of units must be for households earning ≤30% AMI.
- 5No ongoing obligation to the Government: once transferred, the property leaves the government’s direct obligation, subject to the 30-year affordability commitments.
- 6Clerical update: adds a new Sec. 180 to the Chapter 1 analysis, acknowledging this transfer provision in the statute.