The U.S. Department of Housing and Urban Development (HUD) has announced the availability of $100 million in competitive grant funding aimed at reducing regulatory barriers, increasing housing production, and lowering housing costs. This initiative is part of the Biden-Harris Administration's broader effort to address housing affordability as outlined in a recent White House fact sheet.
“This funding is designed to cut red tape, and make sure that we’re building more homes, especially affordable homes, with urgency because people need help now,” said HUD Acting Secretary Adrianne Todman. “The Biden-Harris Administration has made it a priority to reduce housing costs by increasing our nation’s housing supply and our partnerships with local communities are critical to achieving this goal."
The Pathways to Removing Obstacles to Housing (PRO Housing) program will allow communities across the country to apply for grants ranging from $1 million to $7 million. These funds aim to help local governments, states, metropolitan planning organizations (MPOs), and multijurisdictional entities address restrictive land use or regulatory policies, improve housing strategies, and facilitate both new construction and repairs of existing homes.
This announcement marks the second round of the PRO Housing competition. Earlier this year, HUD awarded $85 million in grants across 19 states and the District of Columbia. The winners will update state and local housing plans, revise land use policies, streamline permitting processes for new constructions, preserve existing affordable units, provide development subsidies for new units, and increase access to homeownership.
Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development stated: “The communities who were awarded PRO Housing funding are already doing incredible work to modernize local policies, invest in communities, and build more homes. What makes this program unique is its ability to support and accelerate locally-driven planning, implementation, and development efforts.”
Applications for round two are due by October 15, 2024.
In addition to PRO Housing funding, HUD has launched a $250 million "Legacy Challenge" aimed at transformative housing investments through low-cost loans provided under the Community Development Block Grant program. This initiative seeks to enable communities to undertake projects that will revitalize neighborhoods.
“I’m challenging our nation’s mayors and governors to use this unique funding mechanism to build new housing,” said Acting Secretary Todman.
Funds from the Legacy Challenge can be used for adaptive reuse projects such as commercial-to-residential conversions; preservation and rehabilitation of existing units; infrastructure upgrades; manufactured housing facilities; mixed-use or transit-oriented development projects; or revolving loan pools supporting local development.
Communities expressing interest by November 1 will receive additional repayment flexibilities and waivers. A kickoff webinar scheduled for August 29 will provide further details about the Legacy Challenge.
