Title 42, The Public Health and WelfareRelease 119-110

§19503 Unlocking Housing Supply Through Streamlined and Modernized Reviews Act

Title 42 › CHAPTER 165 — INCREASING HOUSING SUPPLY › SUBCHAPTER I — BUILDING MORE IN AMERICA › § 19503

Last updated Sep 22, 2026|Official source

Summary

Requires the HUD Secretary to rewrite HUD’s environmental review rules so many housing activities get faster reviews. The Secretary must use the versions of the rules that were in effect on January 1, 2025 and sort projects into three faster-review groups: one group treated like “exempt” activities (for example, tenant-based rental aid; supportive services like health care, day care, short-term rent or mortgage help; routine operating costs; economic development not tied to building work; help for home-buyers; predevelopment work without physical impact; supplemental insurance or guarantees; and emergency repairs for things like HVAC or water heaters), a second group for minor construction or repairs that don’t change size by more than 20 percent (for example, replacing water or sewer lines, sidewalks, repaving, rehabbing 1–4 unit homes, up to 4 scattered existing units, and buying or leasing existing buildings or vacant land kept for the same use), and a third group for somewhat larger projects that can be streamlined if they do not significantly change the environment or exceed the original project scope (examples include buying or converting open space or homes in high-risk areas, converting offices to housing with size limits, new construction of 5–15 units or certain scattered-site projects of 15 or more units, rehab of 5–15 unit buildings, qualifying infill projects, and voluntary buyouts in floodways or floodplains after disasters). Infill project — a city project on previously used land of 5 acres or less, surrounded by development, that repurposes vacant or run-down land or buildings for housing or business and is served by existing utilities. Secretary — the Secretary of Housing and Urban Development. The faster-review rules apply only to money appropriated after the rules take effect and do not apply when a grantee mixes old and new funds for the same project. The Secretary must send an annual report to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services during the 5-year period beginning on the date that is 2 years after July 11, 2026, showing reductions in review times and administrative costs (with emphasis on affordable housing) and offering any recommendations for changing categorical exclusions or exemptions under title 24, Code of Federal Regulations.

Full Legal Text

Title 42, §19503

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Definitions

In this section: (1) Infill project

(2)Secretary

The term “Secretary” means the Secretary of Housing and Urban Development.

(b)NEPA streamlining for HUD housing-related activities

(1)In general

The Secretary shall, in accordance with section 553 of title 5 and section 4333 of this title, expand and reclassify housing-related activities under the necessary administrative regulations as follows:

(A)The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled “exempt activities” as set forth in section 58.34 of title 24, Code of Federal Regulations, as in effect on January 1, 2025:

(i)Tenant-based rental assistance.

(ii)Supportive services, including health care, housing services, permanent housing placement, day care, nutritional services, short-term payments for rent, mortgage, or utility costs, and assistance in gaining access to Federal Government and State and local government benefits and services.

(iii)Operating costs, including maintenance, security, operation, utilities, furnishings, equipment, supplies, staff training, and recruitment and other incidental costs.

(iv)Economic development activities, including equipment purchases, inventory financing, interest subsidies, operating expenses, and similar costs not associated with construction or expansion of existing operations.

(v)Activities to assist home-buyers in the purchase of existing dwelling units or dwelling units under construction, including closing costs and down payment assistance, interest rate buydowns, and similar activities that result in the transfer of title.

(vi)Affordable housing predevelopment costs related to obtaining site options, project financing, administrative costs and fees for loan commitment, zoning approvals, and other related activities that do not have a physical impact.

(vii)Approval of supplemental assistance, including insurance or guarantee, to a project previously approved by the Secretary.

(viii)Emergency home-owner or renter assistance for the repair or replacement of HVAC, hot water heaters, and other necessary existing utilities required under applicable law.

(B)The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled, (i) “categorical exclusions not subject to section 58.5” and (ii) “categorical exclusions not subject to the Federal laws and authorities cited in section 50.4” in section 58.35(b) and section 50.19, respectively of title 24, Code of Federal Regulations, as in effect on January 1, 2025, if such activities do not materially alter environmental conditions and do not materially exceed the original scope of the project:

(i)Acquisition, repair, improvement, reconstruction, or rehabilitation of public facilities and improvements (other than buildings) if the facilities and improvements are in place and will be retained in the same use without change in size or capacity of more than 20 percent, including replacement of water or sewer lines, reconstruction of curbs and sidewalks, and repaving of streets.

(ii)Rehabilitation of 1-to-4 unit residential buildings, and existing housing-related infrastructure, such as repairs or rehabilitation of existing wells, septics, or utility lines that connect to that housing.

(iii)New construction, development, demolition, acquisition, or disposition of up to 4 scattered site existing dwelling units where there is a maximum of 4 units on any 1 site.

(iv)Acquisitions (including leasing) of, disposition of, or equity loans on an existing structure, or acquisition (including leasing) of vacant land if the structure or land acquired, financed, or disposed of will be retained for the same use.

(C)The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled, (i) “categorical exclusions subject to section 58.5” and (ii) “categorical exclusions subject to the Federal laws and authorities cited in section 50.4” in section 58.35(a) and section 50.20, respectively, of title 24, Code of Federal Regulations, as in effect on January 1, 2025, if such activities do not materially alter environmental conditions and do not materially exceed the original scope of the project:

(i)Acquisitions of open space or residential property, where such property will be retained for the same use or will be converted to open space to help residents relocate out of an area designated as a high-risk area by the Secretary.

(ii)Conversion of existing office buildings into residential development, subject to—

(I)a maximum number of units to be determined by the Secretary; and

(II)a limitation on the change in building size of not more than 20 percent.

(iii)New construction, development, demolition, acquisition, or disposition of 5 to 15 dwelling units where there is a maximum of 15 units on any 1 site. The units can be 15 1-unit buildings or 1 15-unit building, or any combination in between.

(iv)New construction, development, demolition, acquisition, or disposition of 15 or more housing units developed on scattered sites when there are not more than 15 housing units on any 1 site, and the sites are more than a set number of feet apart as determined by the Secretary.

(v)Rehabilitation of buildings and improvements in the case of a building for residential use with 5 to 15 units, if the density is not increased beyond 15 units and the land use is not changed.

(vi)Infill projects consisting of new construction, rehabilitation, or development of residential housing units.

(vii)The voluntary acquisition of properties—

(I)located in—

(aa)a floodway;

(bb)a floodplain; or

(cc)any other area, clearly delineated by the grantee; and

(II)that have been impacted by a predictable environmental threat to the safety and well-being of program beneficiaries caused or exacerbated by a federally declared disaster.

(c)Implementation

For purposes of implementing the streamlining of environmental review for housing-related activities under subsection (b), the agency actions carried out under that subsection— (1)

(2)shall not apply with respect to a grantee that combines funds appropriated before and after the effective date of those actions to carry out a project.

(d)Report

The Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual report during the 5-year period beginning on the date that is 2 years after July 11, 2026, that provides a summary of findings of reductions in review times and administrative cost reduction, with a particular focus on the affordable housing sector, as a result of the actions set forth in this section, and any recommendations of the Secretary for future congressional action with respect to revising categorical exclusions or exemptions under title 24, Code of Federal Regulations.

Reference

Citations & Metadata

Citation

42 U.S.C. § 19503

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110