HR1981-119

What This Bill Does

The Choice in Affordable Housing Act tries to make Housing Choice Vouchers easier for landlords to accept and more useful for families trying to rent in high-opportunity neighborhoods. It authorizes the Herschel Lashkowitz Housing Partnership Fund at $100 million for each of fiscal years 2025 through 2029. HUD would use the fund for one-time owner incentive payments of up to 200 percent of the monthly housing assistance payment for new eligible units in census tracts below 20 percent poverty, security-deposit payments on behalf of voucher tenants, bonus payments for public housing agencies that employ landlord liaisons, and other HUD-approved recruitment and retention uses. The bill also lets recent LIHTC, HOME, and USDA Rural Housing inspections satisfy voucher inspection requirements, allows pre-inspection for new landlords if a voucher lease starts within 60 days, directs a threefold expansion of mandatory small area fair market rent metropolitan areas with a hold-harmless rule for existing families, tells HUD to modernize Section 8 Management Assessment Program incentives, and requires five annual reports on landlord recruitment, accessible units, high-opportunity areas, and voucher use.

Who Benefits and How

Housing Choice Voucher families benefit because landlord incentives, security-deposit support, and small area fair market rents can open more units in low-poverty neighborhoods. Extremely low-income voucher tenants benefit because public housing agencies must prioritize them when making security-deposit payments. Private landlords in low-poverty census tracts benefit from one-time incentive payments of up to 200 percent of a monthly housing assistance payment. Public housing agencies benefit from landlord-liaison bonus payments and flexible Housing Partnership Fund uses approved by HUD. Native American veterans using Tribal HUD-VASH benefit indirectly because the bill keeps that program in view while defining the rental-assistance context.

Who Bears the Burden and How

HUD must establish and monitor the Housing Partnership Fund, designate more small area fair market rent metropolitan areas, and publish annual effectiveness reports. Public housing agencies must administer incentive payments, damage-claim processes, landlord liaison services, inspection substitutions, and tenant notifications. Landlords receiving security-deposit payments must document damage claims, return unused deposits, and may accept lease-duration conditions for incentive payments. Federal taxpayers fund the $100 million annual authorization and any added voucher-administration costs. Voucher tenants may still bear repair-cost responsibility if a public housing agency sets tenant liability after a security-deposit claim.

Key Provisions

• Creates the Herschel Lashkowitz Housing Partnership Fund at $100 million per year for fiscal years 2025 through 2029.
• Authorizes one-time landlord incentives for new eligible voucher units in census tracts below 20 percent poverty.
• Provides security-deposit payments, landlord-liaison bonuses, and HUD-approved landlord recruitment and retention uses.
• Amends inspection rules to recognize recent LIHTC, HOME, USDA Rural Housing, and new-landlord pre-inspections.
• Requires expanded small area fair market rent use, SEMAP modernization work, and five annual public reports.