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S2051119th CongressWALLET

Choice Neighborhoods Initiative Act of 2025

Sponsored By: Senator Blunt Rochester, Lisa [D-DE]

Introduced

Summary

Transform distressed, high-poverty neighborhoods into mixed-income, long-term affordable communities. This bill would create a HUD-run Choice Neighborhoods Initiative to fund housing transformation, one-for-one replacement, resident protections, supportive services, and 50-year affordability plans with regular updates.

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  • Residents and families: Plans must guarantee a right to return for eligible displaced residents, provide relocation assistance and counseling, cover moving costs and security deposits, give at least 90 days notice before relocation, and allow a minimum 150-day housing search period.
  • Local governments, developers, and schools: Grants would fund demolition, rehabilitation, or replacement of severely distressed housing with a 100% one-for-one replacement requirement and at least one-third of replacement units on-site when feasible. Applicants must include long-term affordability, fair housing and accessibility measures, and linkages to education and transit.
  • HUD, service providers, and grant management: HUD would run competitive grants, set cost limits, require performance benchmarks, and coordinate with other agencies. Non-housing activities are capped at 25% of a grant, and the bill authorizes $1.0 billion for FY2026 and such sums as necessary thereafter to support grants and rental assistance.

*The bill would increase federal spending by authorizing at least $1.0 billion for FY2026 and create ongoing budgetary commitments.*

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Grants and spending limits for public housing

If enacted, the bill would authorize $1 billion for fiscal year 2026 and such sums as needed later for Choice Neighborhoods grants. In any year up to 10% of funds could pay for planning and up to 5% for technical help and evaluation. At least 80% of funds (or 80% of assisted units) must go to public housing units. Tenant‑based relocation and Section 8 help would be allowed only to cover the number of units demolished or disposed.

Replacement rules and resident protections

If enacted, the bill would require replacement of demolished or disposed public and assisted housing units (100% replacement, with a narrow waiver down to 90% in limited cases). At least one‑third of replacements must be on‑site or nearby unless prevented. Displaced residents who want to return would get a return preference and comparable tenant rights. The bill would require community meetings before applying and a resident‑built affordability plan lasting at least 50 years, updated every 5 years. Relocation help could include renewable vouchers, counseling, moving costs, and security deposit assistance.

Which neighborhoods can get grants

If enacted, grants would be available only in neighborhoods that have both a concentration of extreme poverty and severely distressed housing. The bill would define extreme poverty using recent Census income data plus long‑term distress signs, like higher crime for 3+ years, many vacant or substandard homes, low school performance, or other Secretary‑determined factors.

Who can apply and HUD oversight

If enacted, the bill would narrow who may be the main grantee and set co‑applicant rules for projects. HUD could underwrite different project phases separately. HUD would have 180 days to write implementing rules. HUD could take back unobligated grant funds or require a new administrator if grantees fail to proceed. HUD must also send annual reports to Congress on grant use and outcomes.

Sponsors & CoSponsors

Sponsor

Blunt Rochester, Lisa [D-DE]

DE • D

Cosponsors

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 6/12/2025

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 7/9/2025

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 7/14/2025

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 7/21/2025

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 9/30/2025

Roll Call Votes

No roll call votes available for this bill.

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