HR3459-119

What This Bill Does

The Empty Lots to Housing Act adds a title 23 provision for real property acquired with federal transportation assistance that is no longer needed for its original purpose. DOT may authorize transfer of the property, with no further obligation to the federal government, to a local governmental authority or nonprofit organization for transit-oriented dwelling units. DOT may also authorize transfer to a third-party entity if a local government or nonprofit cannot receive the property, the overall benefit of transfer outweighs the federal interest in selling the property after considering fair market value and other factors, and the third party has a satisfactory history of constructing or operating affordable housing. DOT may authorize transfer only if the recipient contractually requires the transferee, for 30 years, to reserve at least 40 percent of units developed on the property for families at or below 60 percent of area median income with rent not exceeding 30 percent of adjusted income, and to reserve at least 20 percent of those reserved units for families at or below 30 percent of area median income.

Who Benefits and How

Low-income renters benefit because transferred properties must reserve 40 percent of units for households at or below 60 percent of area median income. Very low-income families benefit because part of the reserved units must serve households at or below 30 percent of area median income. Local governments benefit from a pathway to convert unneeded transportation land into transit-oriented housing. Nonprofit housing developers benefit from access to surplus federally assisted transportation real estate.

Who Bears the Burden and How

Transportation grant recipients must impose 30-year affordability contracts before transferring property. DOT real estate staff must decide whether transfers meet federal-interest, fair-market-value, and affordable-housing history tests. Third-party developers must prove a satisfactory affordable housing record before receiving property when local governments or nonprofits cannot. Federal taxpayers may forgo sale proceeds when property transfers without further obligation to the government.

Key Provisions

• Authorizes transfer of unneeded federally assisted transportation property for transit-oriented dwelling units.
• Allows transfers to local governments, nonprofits, or qualified third parties when statutory tests are met.
• Requires 30-year affordability contracts for transferred property.
• Requires at least 40 percent of units to serve families at or below 60 percent of area median income.
• Requires part of the reserved units to serve families at or below 30 percent of area median income.