HR4660-119

What This Bill Does

The Unlocking Housing Supply Through Streamlined and Modernized Reviews Act directs the HUD Secretary to use Administrative Procedure Act and NEPA rulemaking to reclassify housing-related environmental review categories. It defines infill projects as municipal projects served by existing utilities and public services, on previously disturbed land of no more than five acres, substantially surrounded by residential or commercial development, repurposing vacant or underused parcels or abandoned structures, and serving residential or commercial purposes. HUD must treat several activities as equivalent or substantially similar to exempt activities under 24 C.F.R. 58.34, including tenant-based rental assistance, supportive services, operating costs, economic development not tied to construction or expansion, homebuyer assistance for existing or under-construction units, affordable housing predevelopment without physical impact, supplemental assistance to previously approved projects, and emergency homeowner or renter utility-related assistance. HUD must also treat other activities as equivalent or substantially similar to categorical exclusions not subject to section 58.5 or certain Federal authorities, including small public facility work, one-to-four unit rehabilitation, small scattered-site actions, and same-use acquisitions or leases. Additional categories are treated as categorical exclusions subject to section 58.5 or comparable part 50 authorities if they do not materially alter environmental conditions or exceed original scope, including certain open-space or residential acquisitions, office-to-residential conversions with unit and size limits, five-to-fifteen unit projects, scattered-site larger housing, five-to-fifteen unit rehabilitation, and infill projects. Starting two years after enactment, HUD must submit annual reports for five years to Senate Banking and House Financial Services leaders on review-time reductions, administrative-cost reductions, affordable housing impacts, and recommendations for future categorical exclusions or exemptions.

Who Benefits and How

Affordable housing developers benefit from faster HUD environmental review for predevelopment, rehabilitation, infill, and office-conversion activities. HUD grantees using tenant-based rental assistance benefit from exempt-like treatment for rental assistance activities. Homebuyers receiving HUD assistance benefit if closing cost, down payment, and interest-rate assistance move through review faster. Infill project sponsors benefit from categorical treatment for qualifying disturbed parcels of five acres or less.

Who Bears the Burden and How

HUD must conduct rulemaking to expand and reclassify exempt and categorically excluded housing activities. Environmental review officials must apply new categories and determine whether projects materially alter environmental conditions or exceed scope. Senate Banking and House Financial Services committees must review five annual HUD reports. Environmental advocacy organizations may face fewer full reviews for covered housing-related activities.

Key Provisions

• Defines infill projects on previously disturbed municipal parcels of five acres or less served by existing utilities and public services.
• Directs HUD to classify listed rental assistance, supportive services, operating costs, homebuyer assistance, predevelopment, and emergency assistance as exempt-like activities.
• Directs HUD to classify listed small facility, rehabilitation, scattered-site, and same-use acquisition activities as categorical exclusions not subject to section 58.5.
• Directs HUD to classify listed open-space, office-conversion, five-to-fifteen unit, scattered-site, rehabilitation, and infill activities as categorical exclusions subject to section 58.5.
• Requires five annual HUD reports on review-time reductions, administrative-cost reductions, affordable housing impacts, and future recommendations.