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Congress·In Committee·5 months ago

Congress proposes HUD pilot grants to convert blighted empty buildings into attainable housing

Also known as: RESIDE Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(8)
Retiree
Neutral
Military Veteran
Neutral
Disability Benefits
Neutral
Chronic Illness
Neutral
Physical Disability
Neutral
Sensory Disability
Neutral
Cognitive Developmental
Neutral
Mental Health
Neutral
Positive Impacts(6)
Housing Assistance
Helps
Renter
Helps
Homeowner
Helps
Small Business Owner
Helps
Gig Worker
Helps
Union Member
Helps

Key Points

  • Creates a HUD pilot grant program to help cities and local housing agencies turn unsafe, empty commercial buildings into housing.
  • Funding could be up to $100 million each year from 2027 to 2031, but only if the broader housing grant program has funding above a set level.
  • Grants would generally run from $1 million to $10 million and can pay for buying property, demolition, cleanup, construction, and renovations.
  • HUD would prioritize places with economic distress, certain tax-favored investment zones, and communities that have reduced red tape for conversions while keeping safety rules.
  • After the pilot ends, HUD must report to Congress on results like more affordable housing, less blight, and impacts for seniors, people with disabilities, and veterans.
HousingInfrastructure

Milestones

2 milestones2 actions
Sep 26, 2025House

Referred to the House Committee on Financial Services.

Sep 26, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

After the bill becomes law and before FY2027 funds are awarded

HUD sets up the new competitive pilot grant process (rules, application, scoring).

Cities and counties that want funding will need to apply and show they can convert blighted buildings into income-restricted housing.

FY2027 (starts Oct. 1, 2026)

First year grants could be awarded if HOME funding for FY2027 exceeds $1.35 billion.

Communities that win could start buying buildings, cleaning hazards, and beginning design/construction for new housing.

Months after each grant is awarded

Redevelopment work begins on selected sites (acquisition, demolition, remediation, construction/rehab).

Nearby residents may see construction activity; local workers may see new jobs; future renters/homebuyers may gain new options later.

FY2031 (starts Oct. 1, 2030)

Final year of pilot funding (if HOME funding remains above the threshold).

Last round of communities could receive grants; projects may continue beyond the funding window as construction finishes.

Within 6 months after the pilot program terminates

HUD studies results and submits a report to Congress within 180 days after the pilot ends.

The report could influence whether Congress expands, changes, or ends the program based on housing supply, blight removal, and local tax-base changes.

Related News

2 articles
National Housing & Rehabilitation Association (NH&RA) – HousingOnline·about 1 month ago

House Committee on Financial Services Holds Hearing With HUD Secretary

Preview of a House Financial Services Committee hearing that specifically lists H.R. 5591 (RESIDE Act) among noticed legislative proposals and describes its HOME pilot for converting blighted buildings into housing.

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WPTA/21Alive News·7 months ago

Indiana Mayors Praise Senator Banks’ Bipartisan Bill to Revitalize Communities, Build More Homes

Local-TV coverage of the RESIDE Act describing grants (generally $1M–$10M) to help communities convert abandoned commercial properties (warehouses, hotels, strip malls) into housing.

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Source Information

Document Type

Congressional Bill

Official Title

RESIDE Act

Bill NumberHR 5591
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Financial Services.

Sponsor

Cosponsors

(4)
D: 2R: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.