Freedom to Build Act

Key Points

• The bill creates a voluntary "Freedom to Build" designation that cities and towns can earn by cutting red tape on housing construction. The Department of Housing and Urban Development would set up and manage the program within 18 months of the bill becoming law.
• To qualify, localities must adopt at least 3 reforms in each of 3 categories: allowing modern construction methods like modular homes, speeding up the permit approval process with firm deadlines and by-right approvals, and protecting property rights by removing government mandates on what can be built.
• Alternatively, a locality can qualify by showing it is actually building enough new housing to keep up with demand. The formula would set higher targets for expensive markets and lower targets for affordable ones.
• Cities that earn the designation would get priority when competing for federal grants related to housing, community development, and construction. Congress also encourages transportation and other agencies to treat the designation as a positive factor in grant decisions.
• The qualifying reforms include controversial provisions like prohibiting rent control on new buildings, banning growth moratoria and construction caps, eliminating mandates for EV charging infrastructure, and barring rules that penalize car-dependent developments.
• The designation lasts 5 years and can be renewed if a locality keeps meeting the requirements. HUD can revoke it if a community backslides on reforms, but must give 180 days notice to fix the problem first.