Freedom to Build Act
Sponsored By: Representative De La Cruz, Monica [R-TX-15]
Introduced
Summary
Encourage local governments to loosen housing rules to speed construction. This bill would create a HUD "Freedom to Build" designation that localities could win by adopting targeted regulatory reforms or by meeting affordability-adjusted housing supply targets.
Show full summary
- Families and renters would see designated localities get priority for HUD housing programs and related competitive grants, which aims to boost local housing supply and affordability.
- Local governments would qualify in one of two ways: certify adoption of at least three HUD-listed reforms across reform categories or demonstrate sustained supply growth against an affordability-adjusted target measured at the metropolitan level.
- Builders and developers would face fewer barriers in designated places because reforms include by-right approvals, binding permit timelines, allowance for modern construction methods, tighter limits on some fees and mandates, and bans on growth moratoria and certain rent-control rules.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
New HUD "Freedom to Build" label
This bill would direct HUD to create a voluntary "Freedom to Build" designation within 18 months. HUD would publish a public list and update it at least once a year. Each designation would last 5 years and could be renewed if the place still qualifies. HUD could revoke a designation for a material reversal or failure to meet targets after giving written notice and 180 days to cure. HUD would review the qualifying reforms and the outcome formula at least once every 5 years.
Two ways places qualify for label
This bill would give two ways for a locality to earn the HUD label. One way would let a locality certify it adopted at least 3 HUD-specified reforms in each of three reform categories. The other way would let a locality meet an affordability-adjusted housing supply target set by HUD for metro or housing market areas. HUD would set the specific reforms, the formula, and targets through notice-and-comment rulemaking and would use public data like the FHFA House Price Index, the American Community Survey, HUD Fair Market Rents, and census housing counts.
Local pro-building rules and grants
This bill would list local rules that can earn a locality the HUD label. The rules would speed approvals by requiring by-right approvals for conforming projects, set binding permit and inspection timelines, limit impact fees to a demonstrated nexus, allow third-party inspections, and protect approved plans from retroactive code changes. The rules would also bar many local mandates that raise costs, including most rent control on new units, uncompensated inclusionary set-asides unless fully offset, and wage or residency mandates beyond state law. HUD would also prioritize applicants in designated communities for competitive HUD housing and community development grants.
Sponsors & CoSponsors
Sponsor
De La Cruz, Monica [R-TX-15]
TX • R
Cosponsors
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 9/8/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov