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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4460 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4460
To reduce regulatory barriers to housing, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 5, 2024
Mr. Fetterman introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To reduce regulatory barriers to housing, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Reducing Regulatory Barriers to
Housing Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) As of 2021 in the United States, there was an estimated
housing shortage of 3,890,000 homes. This housing supply
shortage has resulted in a record number of cost-burdened
households across regions and spanning the large and small
cities, towns, and coastal and rural communities of the United
States.
(2) Several factors contribute to the undersupply of
housing in the United States, particularly workforce housing,
including rising costs of construction, a shortage of labor,
supply chain disruptions, and a lack of reliable funding
sources.
(3) Regulatory barriers at the State and local levels, such
as zoning and land use regulations, also inhibit the creation
of new housing to meet local and regional housing needs.
(4) State and local governments are proactively exploring
solutions for reforming regulatory barriers, but additional
resources, data, and models are needed to adequately address
these challenges.
(5) While land use regulation is the responsibility of
State and local governments, Federal support for necessary
reforms is not a preemption of existing authority, and there is
a need for the Federal Government to provide support and
assistance to State and local governments that wish to
undertake necessary reforms in a manner that fits their
communities' needs.
(6) It is the policy of the United States to provide for
fair housing throughout the country, and it is in the regional
and national interest to have a supply of housing that is fair,
affordable, adequate, and near opportunity.
(7) Therefore, zoning ordinances or systems of land use
regulation that have the intent or effect of restricting
housing opportunities based on economic status or income
without interests that are substantial, legitimate,
nondiscriminatory and that outweigh the regional need for
housing are contrary to the regional and national interest.
SEC. 3. DEFINITIONS.
In this Act:
(1) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary for Policy Development and
Research of the Department of Housing and Urban Development.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 4. LAND USE AND PLANNING.
(a) In General.--Section 4 of the Department of Housing and Urban
Development Act (42 U.S.C. 3533) is amended by adding at the end the
following:
``(i) Land Use and Planning.--
``(1) Definitions.--In this subsection:
``(A) Affordable housing.--The term `affordable
housing' means housing for which the monthly payment is
less than 30 percent of the monthly income of a
household.
``(B) Local zoning framework.--The term `local
zoning framework' means the local zoning codes and
other ordinances, procedures, and policies governing
zoning and land-use at the local level.
``(C) State zoning framework.--The term `State
zoning framework' means the State legislation or State
agency and department procedures enabling local
planning and zoning authorities and establishing and
guiding related policies and programs.
``(D) Unit of general local government.--The term
`unit of general local government'--
``(i) has the meaning given the term in
section 102 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302); and
``(ii) includes regional planning entities.
``(2) Land use and planning.--The Secretary, acting through
the Assistant Secretary, shall--
``(A) provide technical assistance upon request to
States and localities on zoning and planning to--
``(i) eliminate discriminatory land use
policies and reduce barriers to housing
construction, including construction of housing
attainable for low-income and moderate-income
renters and homeowners; and
``(ii) promote sustainable and resilient
land development;
``(B) work across the Department and with the
Department of the Treasury, the Department of Justice,
the Department of Transportation, the Department of
Agriculture, the Department of Health and Human
Services, the Environmental Protection Agency, the
Department of Energy, the Department of the Interior,
and the Council on Environmental Quality to--
``(i) coordinate efforts relating to or
impacting housing development; and
``(ii) as relevant, streamline permitting,
including by aligning the implementing
procedures of those agencies under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) to promote housing production and
transit-oriented development;
``(C) conduct, support, and disseminate research on
local zoning and planning measures to improve access to
affordable housing and increase housing supply across a
range of urban, suburban, exurban, and rural
communities, including by establishing a research
program to perform research, collect data, and
evaluate--
``(i) best practices in zoning and planning
to expand opportunities for housing
affordability and fair housing across a range
of housing types, sizes, and affordability;
``(ii) the effects of land-use reform
measures on--
``(I) neighborhood, jurisdictional,
and regional housing conditions;
``(II) residential stability; and
``(III) access to affordable
housing at all incomes levels;
``(iii) methods of community engagement to
improve the public engagement process to reform
land-use planning and regulatory practices;
``(iv) systems and standards for data
collection; and
``(v) other topics related to zoning and
planning as determined by the Secretary; and
``(D) develop the necessary expertise and capacity
within the Office to carry out this paragraph; and
``(E) not preempt local zoning.
``(3) Guidelines on state zoning frameworks.--
``(A) Establishment.--Not later than 3 years after
the date of enactment of this subsection, the Assistant
Secretary shall publish a document outlining guidelines
and best practices for State zoning frameworks to
support production of adequate housing to meet the
needs of communities and provide housing opportunities
for individuals at every income level across
communities.
``(B) Consultation; public comment.--During the 1-
year period beginning on the date of enactment of this
subsection, in developing the guidelines and best
practices required under subparagraph (A), the
Assistant Secretary shall--
``(i) publish draft guidelines in the
Federal Register for public comment; and
``(ii) establish a task force for the
purpose of providing consultation with the
Department of the draft guidelines published
under clause (i), the members of which shall
include--
``(I) planners and architects;
``(II) advocates with experience in
affordable housing, community
development efforts, and fair housing;
``(III) housing developers,
including affordable and market-rate
housing developers, manufactured
housing developers, and other business
interests;
``(IV) community engagement experts
and community members impacted by
zoning decisions;
``(V) public housing authorities
and transit authorities;
``(VI) members of local zoning and
planning boards and local and regional
transportation planning organizations;
``(VII) State officials responsible
for housing or land use, including
members of State zoning boards of
appeals; and
``(VIII) academic researchers.
``(C) Contents.--The guidelines and best practices
required under subparagraph (A) shall--
``(i) outline potential models for updated
State enabling legislation or State agency and
department procedures;
``(ii) include recommendations regarding--
``(I) the reduction or elimination
of parking minimums;
``(II) the increase in maximum
floor area ratio requirements and
maximum building heights and the
reduction in minimum lot size and
setback requirements;
``(III) the elimination of
restrictions against accessory dwelling
units;
``(IV) increasing by-right uses,
including duplex, triplex, or quadplex
buildings, across cities or
metropolitan areas, including
mechanisms, such as proximity to
transit, to determine the
jurisdictional level for rezoning and
ensures development that does not
disproportionately burden residents of
economically distressed areas;
``(V) provisions regarding review
of by-right development proposals to
streamline review and reduce
uncertainty, including non-
discretionary, ministerial review;
``(VI) the reduction of obstacles
to a range of housing types at all
levels of affordability, including
manufactured and modular housing;
``(VII) State model codes for
directing local reforms, including
mechanisms to encourage adoption;
``(VIII) provisions to encourage
transit-oriented development, including
but not limited to, increased
permissible units per structure and
reduced minimum lot sizes near existing
or planned public transit stations;
``(IX) improvements to the public
engagement processes, including--
``(aa) meaningful access
for limited English proficient
persons and effective
communication improvements for
persons with disabilities;
``(bb) leveraging of
virtual meeting technologies;
and
``(cc) proactive outreach
in communities;
``(X) the elimination of or reforms
to protest petition statutes;
``(XI) the standardization,
reduction, or elimination of impact
fees;
``(XII) the standardization of
building codes;
``(XIII) models for community
benefit agreements;
``(XIV) mechanisms to preserve
affordability, limit disruption of low-
income communities, and prevent
displacement of existing residents;
``(XV) a model for a State zoning
appeals process, which would--
``(aa) create a process for
developers or builders
requesting a variance,
conditional use, or zoning
district change or otherwise
petitioning a local zoning or
planning board for a project
including a State-defined
amount of affordable housing to
appeal a rejection to a State
body or regional body empowered
by the State;
``(bb) establish
qualifications for communities
to be exempted from the appeals
process based on their
available stock of affordable
housing; and
``(cc) establish a State
zoning appeals board to
consider appeals to a variance
rejection and objectively
evaluate petitions based on the
potential for environmental
damage and infrastructural
capacity;
``(XVI) best practices on the
disposition of land owned by State
governments for affordable housing
development; and
``(XVII) other land use measures
that promote access to new housing
opportunities identified by the
Secretary; and
``(iii) consider--
``(I) local housing needs,
including ways to set and measure
housing goals and targets;
``(II) a range of affordability for
rental units, with a prioritization of
units attainable to extremely low-
income, low-income, and moderate-income
residents;
``(III) a range of affordability
for homeownership units attainable to
low-income and moderate-income
residents;
``(IV) distinctions between States
providing constitutional or statutory
home rule authority to municipalities
and States operating under the Dillon
rule, as articulated in Hunter v.
Pittsburgh, 207 U.S. 161 (1907);
``(V) accountability measures;
``(VI) the long-term cost to
residents and businesses if more
housing is not constructed;
``(VII) barriers to individuals
seeking to access affordable housing in
growing communities and communities
with economic opportunity;
``(VIII) consistency with respect
to fair housing and civil rights
requirements;
``(IX) coordination between
infrastructure investments and housing
planning;
``(X) statewide mechanisms to
preserve existing affordability over
the long term, including support for
land banks and community land trusts;
``(XI) guidance to States on
collecting and maintaining proactive
data on the current rental housing
market and rental registries; and
``(XII) other considerations, as
identified by the Secretary.
``(4) State zoning frameworks.--
``(A) In general.--Not later than 180 days after
the date on which the Assistant Secretary receives a
request from a State for technical assistance, the
Assistant Secretary may provide technical assistance to
States that seek to adopt a State zoning framework that
incorporates, in whole or in part, the guidelines and
best practices described in paragraph (4).
``(B) Guidance.--In adopting a State zoning
framework under subparagraph (A), the Assistant
Secretary shall not provide technical assistance to
include measures the net effect of which would promote
exclusionary zoning practices, restrict net production,
or otherwise increase barriers to housing construction.
``(5) Guidelines on local zoning frameworks.--
``(A) Establishment.--Not later than 3 years after
the date of enactment of this subsection, the Assistant
Secretary shall publish best practices for local zoning
frameworks using the same public comment and
consultation process described in paragraph (3)(B) with
respect to State zoning frameworks.
``(B) Contents.--The best practices required under
subparagraph (A) shall--
``(i) include recommendations regarding--
``(I) the simplification and
standardization of existing zoning
codes;
``(II) the reduction or elimination
of parking minimums;
``(III) the increase in maximum
floor area ratio requirements and
maximum building heights and the
reduction in minimum lot size and
setback requirements;
``(IV) the elimination of
restrictions against accessory dwelling
units;
``(V) increasing by-right uses,
including duplex, triplex, or quadplex
buildings;
``(VI) the reduction of obstacles
to a range of housing types, including
manufactured and modular housing;
``(VII) provisions to encourage
transit-oriented development, including
increased permissible units per
structure and reduced minimum lot sizes
near existing or planned public transit
stations;
``(VIII) improvements to the public
engagement processes, including--
``(aa) meaningful access
for limited English proficient
persons and effective
communication improvements for
persons with disabilities;
``(bb) leveraging of
virtual meeting technologies;
and
``(cc) proactive outreach
in communities;
``(IX) provisions regarding review
of by-right development proposals to
streamline review and reduce
uncertainty, including non-
discretionary, ministerial review;
``(X) recommendations regarding
maximum review timelines;
``(XI) models for standardized
community benefit agreements;
``(XII) best practices on the
disposition of land owned by local
governments and transit authorities for
affordable housing development;
``(XIII) mechanisms and incentives
to preserve affordability, limit
disruption of low-income communities,
and prevent or reduce displacement of
existing residents;
``(XIV) other regulatory reforms to
increase housing construction and
reduce housing costs; and
``(XV) other land use measures that
promote access to new housing
opportunities identified by the
Secretary; and
``(ii) consider--
``(I) local housing needs;
``(II) a range of affordability for
rental units, with a prioritization of
units attainable to extremely low-
income, low-income, and moderate-income
residents;
``(III) a range of affordability
for homeownership units attainable to
low- and moderate-income residents;
``(IV) the long-term cost to
residents and businesses if more
housing is not constructed;
``(V) barriers to accessing
affordable housing in growing
communities and communities with
economic opportunities; and
``(VI) other policies or methods,
as identified by the Secretary.
``(C) Technical assistance.--Not later than 180
days after the date on which the Assistant Secretary
receives a request for technical assistance from a
local government or regional planning entity, the
Assistant Secretary may provide technical assistance to
those entities seeking to rehaul, reform, or otherwise
update local zoning frameworks in line with the
guidelines described in paragraph (3), including
assisting in hosting community engagement sessions.
``(D) Guidance.--In adopting a local zoning
framework in accordance with guidance issued under
subparagraph (A), the Assistant Secretary shall not
provide technical assistance to a local government or a
regional planning entity to include measures the net
effect of which would promote exclusionary zoning
practices, restrict net production, or otherwise
increase barriers to housing construction.
``(6) Reporting.--Not later than 2 years after the date on
which the Assistant Secretary publishes the guidelines and best
practices described in paragraphs (3) and (5), the Assistant
Secretary shall submit to Congress a report describing--
``(A) the States that have adopted a version of the
guidelines and best practices, including those that
developed and adopted a State zoning framework;
``(B) the localities that have adopted a version of
the guidelines;
``(C) a summary of the modifications that each such
State made in their State zoning framework; and
``(D) a general summary of the types of updates
localities have made to their local zoning framework.
``(7) Authorization of appropriations.--There are
authorized to be appropriated $10,000,000 to carry out the
technical assistance in paragraphs (4)(A) and (5)(C), and
$10,000,000 to carry out this section, for each of fiscal years
2025 through 2029.''.
(b) Abolishment of Regulatory Barriers Clearinghouse.--
(1) In general.--The Regulatory Barriers Clearinghouse
established pursuant to section 1205 of the Housing and
Community Development Act of 1992 (42 U.S.C. 12705d) is
abolished.
(2) Repeal.--Section 1205 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705d) is repealed.
SEC. 5. QUALIFIED ALLOCATION PLANS.
The selection criteria under a qualified allocation plan under
section 42 of the Internal Revenue Code of 1986) shall not include
consideration of--
(1) any opposition with respect to the project from local
or elected officials; or
(2) any local government contribution to the project,
except to the extent such contribution is taken into account as
part of a broader consideration of the project's ability to
leverage outside funding sources, and is not prioritized over
any other source of outside funding.
SEC. 6. NATIONAL ZONING MAPPING.
(a) In General.--The Secretary shall establish a grant program
under which the Secretary provides funding to academic institutions,
research collaboratives, nonprofit organizations, or other entities to
conduct zoning-district-level digitization of zoning codes.
(b) Priority.--In awarding grants under this section, the Secretary
shall prioritize projects that will--
(1) create a plan to maintain the database for such
information;
(2) establish a portal for State entities and local
governments to input zoning-related information;
(3) prioritize mapping areas whose zoning has not
previously been digitized;
(4) coordinate with State or local government entities,
provide a plan for long-term maintenance of the database, and
establish a protocol for data sharing; and
(5) develop tools to test the impact of various zoning and
land use regulation reforms on the overall supply of new
housing.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $3,500,000 for
fiscal years 2025 through 2027.
SEC. 7. GRANTS FOR ESTABLISHING PRE-APPROVED DESIGNS FOR AFFORDABLE
HOUSING.
(a) Definitions.--In this section:
(1) Covered structure.--The term ``covered structure''
means--
(A) a low-rise or mid-rise structure with between 2
and 8 dwelling units; and
(B) includes--
(i) an accessory dwelling unit;
(ii) a duplex;
(iii) a triplex;
(iv) a fourplex;
(v) a cottage court;
(vi) a courtyard building; and
(vii) any other structure the Secretary
considers appropriate.
(2) Eligible entity.--The term ``eligible entity'' means a
unit of general local government.
(b) Authority.-- The Secretary may award grants to eligible
entities to establish and implement designs for use of covered
structures in the jurisdiction of the eligible entity that the eligible
entity preapproves as affordable housing.
(c) Set-Aside for Smaller or Rural Areas.--Of the amount made
available in each fiscal year for grants under this section, the
Secretary shall ensure that not less than 10 percent shall be used for
grants to eligible entities that are smaller eligible entities or are
located in rural areas.
(d) Reports.--The Secretary shall require eligible entities
receiving grants under this section to report on--
(1) the impacts of the activities carried out using such
grant amounts in improving the production and supply of
affordable housing;
(2) the pre-approved designs established and implemented
using such grant amounts in their communities; and
(3) the impact of the activities funded with grant amounts.
(e) Availability of Information.--The Secretary shall--
(1) make publicly available information on the pre-approved
designs submitted by eligible entities receiving grants under
this section, including information on the benefits of use of
such designs; and
(2) collect, identify, and disseminate best practices
regarding such designs to interested localities and parties.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $10,000,000 for
fiscal years 2025 through 2027.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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