Freedom to Build Act

Key Points

• The bill directs HUD to create a voluntary 'Freedom to Build' label for cities and towns that cut red tape around housing construction, with designated localities getting priority for competitive federal grants.
• To qualify by adopting reforms, a locality must pick from three categories: allowing modern construction methods, speeding up permit approvals, and removing mandates like rent control, wage rules, and certain energy requirements on new housing.
• As an alternative path, a locality can qualify simply by building enough new housing to meet a target that adjusts based on how expensive and fast-rising local housing costs are.
• Designated localities get moved to the front of the line for HUD's competitive housing and community development grants, and other agencies are encouraged, but not required, to do the same for infrastructure and transportation grants.
• One specific reform option lets localities ban rent control on newly built units as part of qualifying for the designation, though existing buildings can be left untouched.