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Standard Summary
Comprehensive overview in 1-2 paragraphs
The Project Turnkey Act would create a new program under the HOME Investment Partnerships Act called the Project Turnkey Program. Its purpose is to rapidly repurpose vacant hotels and motels (and other eligible buildings) to increase affordable housing and shelter capacity across the nation. The bill would provide federal funding—an authorization of $1 billion per year through 2035—to eligible entities (states, local governments, housing agencies, nonprofit housing providers, community development corporations, CDFIs, and certain project sponsors) to acquire, rehabilitate, convert, or operate non-congregate shelter units and affordable housing, including the conversion of vacant hotels and motels. The program would emphasize leveraging existing housing activities, require funds to supplement (not replace) state/local dollars, and permit waivers to expedite use of funds. It also creates a broad definition of eligible activities and qualifying beneficiaries, while relaxing several standard HOME program requirements for amounts received under this new program.
Key Points
- 1Establishment and purpose
- 2- Creates the Project Turnkey Program within the HOME Investment Partnerships Act to leverage vacant hotels and motels for housing and shelter capacity; authorizes federal funding and sets aims to accelerate use of vacant properties for affordable housing or shelter.
- 3Funding terms and administration
- 4- Authorized $1,000,000,000 annually for the program, with funds remaining available through 2035.
- 5- Availability and prioritization settings include allocation to grantees that received allocations under section 217 in FY 2025, plus dedicated amounts for capacity building/technical assistance ($25 million) and administration ($ up to $50 million).
- 6- Administrative costs capped at 15% of awarded amounts; up to 5% may cover operating expenses of community housing development organizations (CHDOs) and nonprofits, conditioned on capacity-building criteria and compliance with other HOME limits.
- 7Use of funds and activities
- 8- Eligible activities include rental assistance, investments described under HOME section 212(a), supportive services (including housing counseling and homeless prevention), acquisition/development/operation of non-congregate shelters or affordable housing, rehabilitation/retrofitting/conversion of vacant properties (including hotels/motels, schools, hospitals, office buildings) for housing or shelter, and expansion/repair of shelters to preserve bed capacity.
- 9- Special emphasis on converting vacant hotels and motels to housing or shelter options.
- 10Eligibility and administration
- 11- Eligible entities: states/local governments, public housing agencies, Continuum of Care project sponsors or combinations thereof, nonprofits that provide housing, community development corporations, and community development financial institutions.
- 12- Eligible activities include rental assistance (payments, security deposits, utility deposits/payments) and other eligible uses under HOME.
- 13- The Secretary may contract with service providers to cover total program costs and administrative overhead “to the extent practicable.”
- 14Waivers, flexibility, and special rules
- 15- The Secretary may waive or modify certain provisions of the Cranston-Gonzalez National Affordable Housing Act and McKinney-Vento Act (except for fair housing, nondiscrimination, labor standards, and environmental protections) to expedite use of funds.
- 16- Several standard HOME program rules are not applicable to amounts appropriated under this section (cost limits, commitment requirements, matching, and CHDO set-aside).
- 17- Definitions provided for key terms (qualifying individuals/families, eligible entities, eligible activities) and specific definitions for hotels and motels as per the Americans with Disabilities Act language (i.e., properties “no longer affecting commerce”).
Impact Areas
Primary group/area affected- Homeless individuals and families, people at risk of homelessness, survivors of domestic violence, and youth experiencing homelessness who may access new or expanded affordable housing or shelter options created by repurposed hotels, motels, or other vacant properties.Secondary group/area affected- Local and state governments, public housing agencies, Continuum of Care networks, nonprofits and CHDOs, and Community Development Financial Institutions that administer or partner in housing and shelter programs; communities facing vacancy issues or hotel/motel closures.Additional impacts- Federal budget and program administration: creates a significant new funding stream with a 2035 sunset, introduces capacity-building and technical-assistance components, and broad waivers of some standard HOME requirements to speed delivery.- Policy and oversight considerations: expanded use of vacant properties for housing could raise local planning, environmental, labor, and fair housing questions; the bill provides for broad Secretary discretion to waive certain rules to expedite use, which may affect accountability and program durability without strong guardrails.- Market and community impacts: potential effects on local housing markets, neighborhood integration, and displacement risk will depend on project design, selection of properties (especially hotels/motels), and long-term affordability commitments.
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