The Pro-Housing Act of 2025 would create a federal program through the Department of Housing and Urban Development (HUD) to support local housing policy planning and implementation. It authorizes planning grants, implementation grants, and direct loans to eligible entities (states, substate jurisdictions, coalitions, Indian tribes, and Native Hawaiian organizations) to develop and carry out housing policy plans aimed at increasing housing supply and affordability while avoiding displacement. The bill emphasizes leveraging transit access, coordinating with transportation and workforce partners, rehabilitating existing properties, and pursuing regional approaches to distribute affordable housing more equitably. It also requires HUD to provide guidance, establish a learning network, and require reporting and external study on the program’s outcomes. In addition, the bill would authorize a General Services Administration (GSA) pilot to transfer unused federal real property to state and local authorities for mixed-use or affordable housing development, with a five-year sunset. The legislation would fund these activities with about $200 million per year from fiscal years 2026–2031 and include matching requirements for grant recipients, as well as a rural/exurban set-aside. It defines key terms (such as “housing policy plan,” “eligible entity,” and “cost-burdened household”) and creates a framework for evaluating and reporting on progress and impact, including a congressionally mandated study after several years.
Key Points
- 1Local Housing Policy Grant and Loan Pilot Program: HUD must start planning grants, implementation grants, and direct loans within 120 days of enactment to help eligible entities develop and implement housing policy plans.
- 2Rural/Exurban Set-Aside and Priorities: At least 20% of funding must go to rural or exurban areas; priority in funding decisions will go to entities that plan to increase supply/affordability, reduce development barriers, avoid displacement, leverage other funding sources, and coordinate with transit, workforce, and regional planning.
- 3Matching and Financing Terms: Grants require non-Federal matching contributions that vary by the population of the jurisdiction (ranging roughly from 15% to 45%). Direct loans must have favorable terms, including a low interest rate set by HUD and conditions determined by HUD.
- 4Uses of Funds and Reporting: Grantees must spend funds to prepare housing policy plans (planning grants) or to implement plans (implementation grants/direct loans), including needs assessments, displacement considerations, community engagement, and action plans. Recipients must report expenditures and progress, with quarterly updates for three years, plus a longer-term study by HUD on program impact.
- 5Learning Network and Guidance: HUD must issue guidance within 90 days on policies to expand housing supply, affordability, and reduce segregation, and within a year establish a learning network to share best practices and help grantees solve problems.
- 6Transfer of Unused Federal Real Property: A GSA pilot would transfer unused federal land or buildings to eligible entities to support mixed-use or affordable housing development, with the program ending five years after enactment.