| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 855 |
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| 5 | 5 | | To establish an Office of Housing Innovation in the Department of Housing |
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| 6 | 6 | | and Urban Development to assist in exploring and developing new ap- |
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| 7 | 7 | | proaches for increasing and diversifying the supply of housing and for |
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| 8 | 8 | | meeting the challenges of housing shortages, housing affordability, and |
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| 9 | 9 | | traffic congestion, and for other purposes. |
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| 10 | 10 | | IN THE HOUSE OF REPRESENTATIVES |
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| 11 | 11 | | JANUARY31, 2025 |
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| 12 | 12 | | Mr. D |
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| 13 | 13 | | ESAULNIERintroduced the following bill; which was referred to the |
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| 14 | 14 | | Committee on Financial Services |
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| 15 | 15 | | A BILL |
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| 16 | 16 | | To establish an Office of Housing Innovation in the Depart- |
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| 17 | 17 | | ment of Housing and Urban Development to assist in |
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| 18 | 18 | | exploring and developing new approaches for increasing |
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| 19 | 19 | | and diversifying the supply of housing and for meeting |
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| 20 | 20 | | the challenges of housing shortages, housing afford- |
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| 21 | 21 | | ability, and traffic congestion, and for other purposes. |
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| 22 | 22 | | Be it enacted by the Senate and House of Representa-1 |
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| 23 | 23 | | tives of the United States of America in Congress assembled, 2 |
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| 24 | 24 | | SECTION 1. SHORT TITLE. 3 |
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| 25 | 25 | | This Act may be cited as the ‘‘Housing Innovation 4 |
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| 26 | 26 | | Act’’. 5 |
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| 30 | 30 | | SEC. 2. FINDINGS. 1 |
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| 31 | 31 | | The Congress finds that— 2 |
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| 32 | 32 | | (1) housing should be considered a critical com-3 |
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| 33 | 33 | | ponent of our national infrastructure; 4 |
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| 34 | 34 | | (2) existing shortages of affordable housing op-5 |
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| 35 | 35 | | tions in many regions are contributing to long com-6 |
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| 36 | 36 | | mutes, financial stress, environmental pollution, and 7 |
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| 37 | 37 | | public health risk; 8 |
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| 38 | 38 | | (3) new approaches in the planning, design, and 9 |
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| 39 | 39 | | construction of housing need to be explored for di-10 |
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| 40 | 40 | | versifying housing options available to the workforce; 11 |
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| 41 | 41 | | and 12 |
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| 42 | 42 | | (4) greater coordination of existing Federal re-13 |
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| 43 | 43 | | sources across agencies could significantly expand 14 |
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| 44 | 44 | | and diversify the supply of housing. 15 |
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| 45 | 45 | | SEC. 3. OFFICE OF HOUSING INNOVATION; ASSISTANT SEC-16 |
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| 46 | 46 | | RETARY. 17 |
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| 47 | 47 | | (a) A |
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| 48 | 48 | | SSISTANTSECRETARY FOR HOUSINGINNOVA-18 |
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| 49 | 49 | | TION.—Section 4(a) of the Department of Housing and 19 |
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| 50 | 50 | | Urban Development Act (42 U.S.C. 3533(a)) is amend-20 |
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| 51 | 51 | | ed— 21 |
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| 52 | 52 | | (1) in paragraph (1), by striking ‘‘7 Assistant 22 |
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| 53 | 53 | | Secretaries’’ and inserting ‘‘9 Assistant Secretaries’’; 23 |
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| 54 | 54 | | and 24 |
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| 55 | 55 | | (2) by adding at the end the following new sub-25 |
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| 56 | 56 | | section: 26 |
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| 60 | 60 | | ‘‘(i) OFFICE OFHOUSINGINNOVATION.— 1 |
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| 61 | 61 | | ‘‘(1) A |
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| 62 | 62 | | SSISTANT SECRETARY.—There shall be in 2 |
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| 63 | 63 | | the Department an Assistant Secretary for Housing 3 |
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| 64 | 64 | | Innovation, who shall be appointed by the President. 4 |
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| 65 | 65 | | ‘‘(2) E |
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| 66 | 66 | | STABLISHMENT.—There is established in 5 |
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| 67 | 67 | | the Department the Office of Housing Innovation, 6 |
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| 68 | 68 | | which shall be headed by the Assistant Secretary for 7 |
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| 69 | 69 | | Housing Innovation. 8 |
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| 70 | 70 | | ‘‘(3) F |
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| 71 | 71 | | UNCTIONS.—The Assistant Secretary of 9 |
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| 72 | 72 | | Housing Innovation shall have primary responsibility 10 |
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| 73 | 73 | | within the Department for— 11 |
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| 74 | 74 | | ‘‘(A) accumulating and disseminating in-12 |
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| 75 | 75 | | formation regarding innovative practices and 13 |
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| 76 | 76 | | successful case studies of new approaches for 14 |
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| 77 | 77 | | increasing and diversifying the supply of hous-15 |
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| 78 | 78 | | ing, especially in urban metropolitan regions 16 |
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| 79 | 79 | | and surrounding rural regions that are facing 17 |
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| 80 | 80 | | challenges of housing shortages, housing afford-18 |
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| 81 | 81 | | ability, and traffic congestion; 19 |
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| 82 | 82 | | ‘‘(B) carrying out activities, including ad-20 |
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| 83 | 83 | | ministering the grant programs under the 21 |
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| 84 | 84 | | Housing Innovation Act, to encourage partner-22 |
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| 85 | 85 | | ships in exploring and developing innovative so-23 |
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| 86 | 86 | | lutions to the challenges to housing supply re-24 |
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| 87 | 87 | | ferred to in subparagraph (A); 25 |
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| 91 | 91 | | ‘‘(C) coordinating with other offices within 1 |
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| 92 | 92 | | the Department, including the Office of Hous-2 |
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| 93 | 93 | | ing, the Office of Policy Development and Re-3 |
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| 94 | 94 | | search, and the Office of Community Planning 4 |
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| 95 | 95 | | and Development, and other Federal agencies, 5 |
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| 96 | 96 | | including the Department of Transportation, to 6 |
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| 97 | 97 | | recommend policies that address workforce 7 |
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| 98 | 98 | | housing needs; and 8 |
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| 99 | 99 | | ‘‘(D) providing technical assistance to local 9 |
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| 100 | 100 | | governments in undertaking or preparing for 10 |
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| 101 | 101 | | planning and policy reforms to increase housing 11 |
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| 102 | 102 | | units and housing supply diversity. 12 |
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| 103 | 103 | | ‘‘(4) D |
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| 104 | 104 | | ETAILEES.—The Secretary shall ensure 13 |
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| 105 | 105 | | that the staff of the Office of Housing Innovation 14 |
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| 106 | 106 | | includes, at all times— 15 |
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| 107 | 107 | | ‘‘(A) two detailees from the Department of 16 |
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| 108 | 108 | | Transportation, who shall include— 17 |
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| 109 | 109 | | ‘‘(i) one having expertise in transit 18 |
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| 110 | 110 | | issues or active transportation issues, or 19 |
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| 111 | 111 | | both; and 20 |
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| 112 | 112 | | ‘‘(ii) one from the Build America Bu-21 |
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| 113 | 113 | | reau having expertise on the Transpor-22 |
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| 114 | 114 | | tation Infrastructure Finance and Innova-23 |
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| 115 | 115 | | tion Act (TIFIA) program and the Rail-24 |
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| 117 | 117 | | ssavage on LAPJG3WLY3PROD with BILLS 5 |
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| 119 | 119 | | road Rehabilitation and Improvement Fi-1 |
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| 120 | 120 | | nancing (RRIF) program; 2 |
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| 121 | 121 | | ‘‘(B) one detailee from the Environmental 3 |
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| 122 | 122 | | Protection Agency having expertise on the pub-4 |
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| 123 | 123 | | lic health impacts of housing and community 5 |
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| 124 | 124 | | development; and 6 |
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| 125 | 125 | | ‘‘(C) one detailee from the Department of 7 |
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| 126 | 126 | | Energy having expertise on renewable energy 8 |
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| 127 | 127 | | and energy efficiency upgrades for low- and 9 |
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| 128 | 128 | | moderate-income communities. 10 |
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| 129 | 129 | | The Secretary shall consult with the heads of the 11 |
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| 130 | 130 | | agencies referred to in this paragraph to provide for 12 |
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| 131 | 131 | | such details and such details shall be made on a re-13 |
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| 132 | 132 | | imbursable basis.’’. 14 |
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| 133 | 133 | | (b) A |
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| 134 | 134 | | MENDMENTS TO TITLE5, UNITEDSTATES 15 |
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| 135 | 135 | | C |
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| 136 | 136 | | ODE.— 16 |
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| 137 | 137 | | (1) P |
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| 138 | 138 | | OSITIONS AT LEVEL IV OF EXECUTIVE 17 |
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| 139 | 139 | | SCHEDULE.—Section 5315 of title 5, United States 18 |
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| 140 | 140 | | Code, is amended in the undesignated item relating 19 |
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| 141 | 141 | | to Assistant Secretaries of Housing and Urban De-20 |
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| 142 | 142 | | velopment by striking ‘‘(8)’’ and inserting ‘‘(9)’’. 21 |
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| 143 | 143 | | (c) C |
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| 144 | 144 | | ONFORMINGAMENDMENT.—Paragraph (1) of 22 |
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| 145 | 145 | | section 4(a) of the Department of Housing and Urban De-23 |
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| 146 | 146 | | velopment Act (42 U.S.C. 3533(a)(1)) is amended by 24 |
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| 147 | 147 | | striking ‘‘7’’ and inserting ‘‘8’’. 25 |
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| 151 | 151 | | (d) AUTHORIZATION OFAPPROPRIATIONS.—There is 1 |
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| 152 | 152 | | authorized to be appropriated for necessary salaries and 2 |
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| 153 | 153 | | expenses of the Office of Housing Innovation of the De-3 |
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| 154 | 154 | | partment of Housing and Urban Development 4 |
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| 155 | 155 | | $50,000,000 for fiscal year 2026 and each fiscal year 5 |
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| 156 | 156 | | thereafter. 6 |
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| 157 | 157 | | SEC. 4. GRANTS FOR LOCAL PLANNING FOR HOUSING. 7 |
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| 158 | 158 | | (a) A |
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| 159 | 159 | | UTHORITY.—The Secretary of Housing and 8 |
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| 160 | 160 | | Urban Development (in this Act referred to as the ‘‘Sec-9 |
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| 161 | 161 | | retary’’), acting through the Assistant Secretary of Hous-10 |
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| 162 | 162 | | ing Innovation, shall carry out a program to make grants 11 |
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| 163 | 163 | | under this section to eligible localities for undertaking 12 |
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| 164 | 164 | | planning efforts and associated regulatory reforms that 13 |
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| 165 | 165 | | address the housing needs of such areas. 14 |
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| 166 | 166 | | (b) E |
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| 167 | 167 | | LIGIBLELOCALITIES.—For purposes of this 15 |
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| 168 | 168 | | section, the term ‘‘eligible locality’’ means a unit of gen-16 |
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| 169 | 169 | | eral local government that is located within an urbanized 17 |
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| 170 | 170 | | area, as such term is defined by the United States Census 18 |
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| 171 | 171 | | Bureau of the Department of Commerce. 19 |
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| 172 | 172 | | (c) G |
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| 173 | 173 | | OALS.—Local plans developed using amounts 20 |
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| 174 | 174 | | from grants under this section shall address all of the fol-21 |
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| 175 | 175 | | lowing goals: 22 |
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| 176 | 176 | | (1) Increasing the supply of housing units with-23 |
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| 177 | 177 | | in the jurisdiction of the grantee or within certain 24 |
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| 178 | 178 | | defined areas within such jurisdiction, including 25 |
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| 182 | 182 | | neighborhoods around existing or planned transit fa-1 |
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| 183 | 183 | | cilities and job centers. 2 |
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| 184 | 184 | | (2) Improving the affordability of the housing 3 |
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| 185 | 185 | | supply within the jurisdiction of the grantee or with-4 |
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| 186 | 186 | | in certain defined areas within such jurisdiction, in-5 |
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| 187 | 187 | | cluding neighborhoods around existing or planned 6 |
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| 188 | 188 | | transit facilities and job centers. 7 |
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| 189 | 189 | | (3) Diversifying the housing supply within the 8 |
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| 190 | 190 | | jurisdiction of the grantee or within certain defined 9 |
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| 191 | 191 | | areas within such jurisdiction to include more multi-10 |
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| 192 | 192 | | family housing options or newer and less common 11 |
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| 193 | 193 | | forms of housing, such as multifamily housing fo-12 |
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| 194 | 194 | | cused on smaller private spaces and more shared 13 |
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| 195 | 195 | | amenities, micro-unit housing, housing developments 14 |
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| 196 | 196 | | that incorporate co-working spaces, and housing for 15 |
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| 197 | 197 | | students. 16 |
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| 198 | 198 | | (4) Improving commute times to job sites, re-17 |
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| 199 | 199 | | ducing congestion, or reducing vehicle miles traveled 18 |
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| 200 | 200 | | within the region in which the locality is located. 19 |
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| 201 | 201 | | (d) U |
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| 202 | 202 | | SE.—The Secretary shall ensure that amounts 20 |
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| 203 | 203 | | from a grant under this section shall be used only for costs 21 |
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| 204 | 204 | | associated with a housing planning process that addresses 22 |
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| 205 | 205 | | the goals in subsection (c), including public outreach, com-23 |
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| 206 | 206 | | munity meetings, preparation of planning documents, and 24 |
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| 207 | 207 | | research and studies in support of such planning efforts. 25 |
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| 211 | 211 | | (e) SELECTION.—The Secretary shall award grants 1 |
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| 212 | 212 | | to eligible localities submitting applications under sub-2 |
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| 213 | 213 | | section (g) that are selected to receive grants under a com-3 |
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| 214 | 214 | | petition based on criteria established by the Secretary, 4 |
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| 215 | 215 | | which shall include the following criteria: 5 |
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| 216 | 216 | | (1) The extent to which the eligible locality out-6 |
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| 217 | 217 | | lines a planning process that will facilitate progress 7 |
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| 218 | 218 | | toward the goals under subsection (c), including the 8 |
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| 219 | 219 | | potential changes or updates to local policies and 9 |
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| 220 | 220 | | regulations (such as zoning ordinances, parking re-10 |
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| 221 | 221 | | quirements, general plans, and specific plans) that 11 |
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| 222 | 222 | | such a planning process will aim to affect. 12 |
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| 223 | 223 | | (2) The extent to which the eligible locality 13 |
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| 224 | 224 | | demonstrates how the planning process will address 14 |
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| 225 | 225 | | the needs of the metropolitan region within which 15 |
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| 226 | 226 | | the eligible locality is located by providing housing 16 |
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| 227 | 227 | | for the existing and projected workforce demand. 17 |
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| 228 | 228 | | (3) The extent to which the eligible locality pro-18 |
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| 229 | 229 | | vides details of the planning actions it intends to 19 |
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| 230 | 230 | | take, including public outreach activities and actions 20 |
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| 231 | 231 | | for consideration for formal policy adoption of plan-21 |
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| 232 | 232 | | ning elements and recommendations. 22 |
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| 233 | 233 | | (4) The extent to which the eligible locality 23 |
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| 234 | 234 | | specifies a timeline for completion of its planning 24 |
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| 235 | 235 | | process, including potential dates for consideration 25 |
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| 239 | 239 | | for formal policy adoption by the local governing 1 |
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| 240 | 240 | | body. 2 |
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| 241 | 241 | | (5) The extent to which the eligible locality 3 |
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| 242 | 242 | | demonstrates collaboration with regional planning 4 |
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| 243 | 243 | | efforts and coordination with the relevant metropoli-5 |
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| 244 | 244 | | tan planning organization that manages regional 6 |
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| 245 | 245 | | planning for the area within which the locality is lo-7 |
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| 246 | 246 | | cated. 8 |
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| 247 | 247 | | (f) L |
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| 248 | 248 | | IMITATION ONAMOUNT.—A grant under this 9 |
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| 249 | 249 | | section for an eligible locality may not exceed $2,000,000. 10 |
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| 250 | 250 | | (g) A |
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| 251 | 251 | | PPLICATIONS.—The Secretary shall provide for 11 |
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| 252 | 252 | | eligible localities to submit applications to the Secretary 12 |
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| 253 | 253 | | for grants under this section, which shall contain such in-13 |
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| 254 | 254 | | formation as the Secretary may require. 14 |
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| 255 | 255 | | SEC. 5. GRANTS FOR RESEARCH AND PILOT PROJECTS. 15 |
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| 256 | 256 | | (a) A |
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| 257 | 257 | | UTHORITY.—The Secretary, acting through the 16 |
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| 258 | 258 | | Assistant Secretary of Housing Innovation, shall carry out 17 |
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| 259 | 259 | | a program to make grants under this section to eligible 18 |
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| 260 | 260 | | partnerships for the purposes of carrying out research and 19 |
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| 261 | 261 | | pilot studies to support, inform, and advise local govern-20 |
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| 262 | 262 | | ments on their plans for new housing and community de-21 |
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| 263 | 263 | | velopment. 22 |
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| 264 | 264 | | (b) E |
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| 265 | 265 | | LIGIBLEPARTNERSHIPS.—For purposes of this 23 |
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| 266 | 266 | | section, the term ‘‘eligible partnership’’ means a partner-24 |
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| 270 | 270 | | ship of entities and institutions that includes at least one 1 |
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| 271 | 271 | | of the following entities: 2 |
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| 272 | 272 | | (1) A unit of local government. 3 |
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| 273 | 273 | | (2) A college, university, or other research insti-4 |
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| 274 | 274 | | tution. 5 |
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| 275 | 275 | | (3) A nonprofit organization. 6 |
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| 276 | 276 | | (c) U |
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| 277 | 277 | | SE.—Amounts from a grant under this section 7 |
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| 278 | 278 | | may only be used for research and pilot studies that are 8 |
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| 279 | 279 | | designed to study and investigate activities and measures 9 |
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| 280 | 280 | | for improving housing and commuting for the workforce 10 |
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| 281 | 281 | | in a community, including— 11 |
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| 282 | 282 | | (1) measures to improve the commuting experi-12 |
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| 283 | 283 | | ence between transit stations and homes (commonly 13 |
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| 284 | 284 | | referred to as the ‘‘last mile’’); 14 |
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| 285 | 285 | | (2) programs for accommodating higher edu-15 |
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| 286 | 286 | | cation students within the community; 16 |
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| 287 | 287 | | (3) programs for facilitating home-sharing for 17 |
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| 288 | 288 | | elderly residents; 18 |
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| 289 | 289 | | (4) plans and measures for integrating business 19 |
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| 290 | 290 | | and commercial activity with residential neighbor-20 |
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| 291 | 291 | | hoods; 21 |
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| 292 | 292 | | (5) plans and measures for increasing transpor-22 |
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| 293 | 293 | | tation options improving mobility within residential 23 |
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| 294 | 294 | | neighborhoods; 24 |
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| 298 | 298 | | (6) programs for learning and disseminating in-1 |
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| 299 | 299 | | formation about modular building techniques and 2 |
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| 300 | 300 | | other approaches to reducing housing construction 3 |
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| 301 | 301 | | costs; 4 |
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| 302 | 302 | | (7) plans or programs for improving public 5 |
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| 303 | 303 | | health through changes in the built environment, 6 |
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| 304 | 304 | | such as safer streets that are more conducive and 7 |
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| 305 | 305 | | welcoming to pedestrian activity; 8 |
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| 306 | 306 | | (8) measures to evaluate the impact of housing 9 |
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| 307 | 307 | | development in the community on the long-term so-10 |
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| 308 | 308 | | cial mobility and economic prospects of residents; 11 |
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| 309 | 309 | | and 12 |
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| 310 | 310 | | (9) such other measures, plans, and activities 13 |
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| 311 | 311 | | as applicants may propose, but only if the Secretary 14 |
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| 312 | 312 | | approves such proposals as consistent with the goals 15 |
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| 313 | 313 | | under section 4(c). 16 |
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| 314 | 314 | | (d) L |
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| 315 | 315 | | IMITATIONS ONAMOUNT.—A grant under this 17 |
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| 316 | 316 | | section for an eligible partnership may not exceed the less-18 |
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| 317 | 317 | | er of— 19 |
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| 318 | 318 | | (1) $500,000; or 20 |
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| 319 | 319 | | (2) in the case only of an eligible partnership 21 |
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| 320 | 320 | | that has previously received a grant under this sec-22 |
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| 321 | 321 | | tion, the amount that the eligible partnership cer-23 |
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| 322 | 322 | | tifies, as the Secretary shall require, that the part-24 |
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| 323 | 323 | | nership will contribute from non-Federal sources for 25 |
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| 327 | 327 | | activities described in subsection (c) that are as-1 |
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| 328 | 328 | | sisted with such grant amounts. 2 |
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| 329 | 329 | | SEC. 6. GRANTS FOR EDUCATION ACTIVITIES. 3 |
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| 330 | 330 | | (a) I |
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| 331 | 331 | | NGENERAL.—The Secretary, acting through the 4 |
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| 332 | 332 | | Assistant Secretary of Housing Innovation, shall carry out 5 |
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| 333 | 333 | | a program under this section to make grants to partner-6 |
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| 334 | 334 | | ships that include at least one academic institution for 7 |
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| 335 | 335 | | providing support for educational and community out-8 |
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| 336 | 336 | | reach programs that are focused on issues related to hous-9 |
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| 337 | 337 | | ing, community development, and regional planning. 10 |
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| 338 | 338 | | (b) L |
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| 339 | 339 | | IMITATIONS ONAMOUNT.—A grant under this 11 |
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| 340 | 340 | | section for a partnership may not exceed the lesser of— 12 |
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| 341 | 341 | | (1) $200,000; or 13 |
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| 342 | 342 | | (2) in the case only of a partnership that has 14 |
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| 343 | 343 | | previously received a grant under this section, the 15 |
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| 344 | 344 | | amount that the partnership certifies, as the Sec-16 |
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| 345 | 345 | | retary shall require, that the partnership will con-17 |
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| 346 | 346 | | tribute from non-Federal sources for educational 18 |
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| 347 | 347 | | and community outreach programs described in sub-19 |
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| 348 | 348 | | section (a) that are assisted with such grant 20 |
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| 349 | 349 | | amounts. 21 |
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| 350 | 350 | | SEC. 7. GAO REVIEW. 22 |
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| 351 | 351 | | Not later than the expiration of the 3-year period be-23 |
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| 352 | 352 | | ginning on the date of the enactment of this Act, the 24 |
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| 353 | 353 | | Comptroller General of the United States shall conduct 25 |
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| 355 | 355 | | ssavage on LAPJG3WLY3PROD with BILLS 13 |
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| 356 | 356 | | •HR 855 IH |
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| 357 | 357 | | a review of grant programs under sections 4, 5, and 6 1 |
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| 358 | 358 | | of this Act to analyze the effectiveness of such programs 2 |
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| 359 | 359 | | and shall submit a report containing the results of such 3 |
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| 360 | 360 | | review and any conclusions resulting from such review to 4 |
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| 361 | 361 | | the Committee on Financial Services of the House of Rep-5 |
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| 362 | 362 | | resentatives and the Committee on Banking, Housing, and 6 |
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| 363 | 363 | | Urban Affairs of the Senate. 7 |
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| 364 | 364 | | SEC. 8. REGULATIONS. 8 |
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| 365 | 365 | | The Secretary may issue any regulations necessary 9 |
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| 366 | 366 | | to carry out this Act. 10 |
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| 367 | 367 | | SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 11 |
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| 368 | 368 | | (a) F |
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| 369 | 369 | | UNDING.—There are authorized to be appro-12 |
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| 370 | 370 | | priated to the Secretary of Housing and Urban Develop-13 |
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| 371 | 371 | | ment to carry out this Act $100,000,000 for each of fiscal 14 |
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| 372 | 372 | | years 2026 through 2032 of which, in each fiscal year— 15 |
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| 373 | 373 | | (1) 90 percent shall be available only for grants 16 |
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| 374 | 374 | | under section 4; 17 |
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| 375 | 375 | | (2) 5 percent shall be available only for grants 18 |
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| 376 | 376 | | under section 5; and 19 |
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| 377 | 377 | | (3) 5 percent shall be available only for grants 20 |
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| 378 | 378 | | under section 6. 21 |
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| 379 | 379 | | (b) S |
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| 380 | 380 | | OURCE OFFUNDING.—It is the sense of the 22 |
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| 381 | 381 | | Congress that the funding to carry out this Act provided 23 |
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| 382 | 382 | | pursuant to subsection (a) should not result in a reduction 24 |
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| 385 | 385 | | •HR 855 IH |
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| 386 | 386 | | of Federal funding for any existing affordable housing 1 |
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| 387 | 387 | | program or programs. 2 |
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| 388 | 388 | | Æ |
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