Title 42, The Public Health and WelfareRelease 119-110

§19507 Build Now Act

Title 42 › CHAPTER 165 — INCREASING HOUSING SUPPLY › SUBCHAPTER I — BUILDING MORE IN AMERICA › § 19507

Last updated Sep 22, 2026|Official source

Summary

It changes how community development block grant money is split among big cities and urban counties. The Housing and Urban Development Secretary must change each place’s share based on how much their housing growth has improved. Places with growth improvement at or above the middle, or places growing very fast (4% or more a year), get a bonus share taken from a pool made up of cuts to other places. Places with growth improvement below the middle lose 10% of their allocation. The Secretary must use Census address and block-level data to count housing units, can shift the time windows by up to 2 months to match the data, and must publish a yearly report showing every place’s growth improvement and which places got bonuses or cuts. By 60 days after July 11, 2026, the Secretary must tell each place its growth score and whether it is above, at, or below the middle, and give guidance on reducing rules that block housing. The new allocation rules start with the third full fiscal year after July 11, 2026 and stay in effect through fiscal year 2043. Money approved before July 11, 2026 is not affected. Key terms in one line each: covered recipient — a metropolitan city or urban county that gets community development block grant funds; eligible recipient — a covered recipient unless it meets one of four listed exceptions; current annual growth rate — average yearly percent change in housing units from the 3rd quarter of the 6th year before the fiscal year through the 3rd quarter of the year before the fiscal year; prior annual growth rate — the same kind of average from the 3rd quarter of the 11th year before through the 3rd quarter of the 6th year before; housing growth improvement rate — a formula comparing current and prior rates; extremely high-growth recipient — an eligible recipient with a current annual growth rate of 4% or more; Secretary — the Secretary of Housing and Urban Development.

Full Legal Text

Title 42, §19507

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

(a)Definitions

In this section: (1) Covered recipient

(2)Current annual growth rate

The term “current annual growth rate”, with respect to an eligible recipient and a fiscal year, means the average annual percentage increase in the number of housing units in the jurisdiction of the eligible recipient, as calculated by the Secretary, during the period—

(A)beginning with the third quarter of the sixth preceding fiscal year; and

(B)ending with the third quarter of the preceding fiscal year.

(3)Eligible recipient

The term “eligible recipient” means any covered recipient unless—

(A)(i)the median Small Area Fair Market Rent in the jurisdiction of the covered recipient is at or below the 60th percentile of median Small Area Fair Market Rents in the jurisdictions of all covered recipients; and

(ii)the median home value in the jurisdiction of the covered recipient is below the median home value for the United States;

(B)the annual rental vacancy rate in the jurisdiction of the covered recipient is greater than the national annual rental vacancy rate for the most recent year available, as published by the Bureau of the Census;

(C)during the 3-year period preceding the date on which the Secretary allocates funds under section 106, the jurisdiction of the covered recipient has been the subject of a major disaster or emergency declaration under section 5170 or 5191, respectively, of this title; or

(D)the covered recipient lacks the legal authority to enact or update zoning and permitting ordinances.

(4)Extremely high-growth recipient

The term “extremely high-growth recipient” means an eligible recipient for which the current annual growth rate is at or above 4 percent.

(5)Housing growth improvement rate

The term “housing growth improvement rate”, with respect to an eligible recipient and a fiscal year, means the quotient of— (A)

(B)the sum obtained by adding the absolute values of the current annual growth rate and the prior annual growth rate of the eligible recipient.

(6)Prior annual growth rate

The term “prior annual growth rate”, with respect to an eligible recipient and a fiscal year, means the average annual percentage increase in the number of housing units in the jurisdiction of the eligible recipient, as calculated by the Secretary, during the period—

(A)beginning with the third quarter of the 11th preceding fiscal year; and

(B)ending with the third quarter of the sixth preceding fiscal year.

(7)Secretary

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

(8)section 106

The term “section 106” means section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306).

(b)Adjustments to community development block grant allocations

(1)In general

In allocating amounts to an eligible recipient under section 106 for a fiscal year, the Secretary shall adjust the allocation based on the housing growth improvement rate of the eligible recipient, in accordance with paragraph (2) of this subsection.

(2)Adjustments

(A)Housing growth improvement rate at or above median; extremely high-growth recipients

(i)In general

If, with respect to a fiscal year for which the allocation under section 106 is being determined, the housing growth improvement rate for an eligible recipient is at or above the median housing growth improvement rate for all eligible recipients other than extremely high-growth recipients, or if an eligible recipient is an extremely high-growth recipient, the Secretary shall allocate to the eligible recipient for that fiscal year, in addition to the amount that would otherwise be allocated to the eligible recipient under section 106, a bonus amount, as determined under clause (ii) of this subparagraph.

(ii)Bonus amount

For purposes of clause (i), the bonus amount for an eligible recipient for a fiscal year shall be equal to the product of— (I)

(II)the quotient of—

(aa)the difference in the number of housing units, between the third quarter of the second preceding fiscal year and the third quarter of the preceding fiscal year, in the jurisdiction of the eligible recipient, as calculated by the Secretary; and

(bb)the difference in the number of housing units, between the third quarter of the second preceding fiscal year and the third quarter of the preceding fiscal year, in the jurisdictions of all eligible recipients that receive a bonus amount under this paragraph, as calculated by the Secretary.

(B)Housing growth improvement rate below median

If, with respect to a fiscal year for which the allocation under section 106 is being determined, the housing growth improvement rate for an eligible recipient is below the median housing growth improvement rate for all eligible recipients other than high-growth outliers, the Secretary shall decrease the amount that would otherwise be allocated to the eligible recipient under section 106 for that fiscal year by 10 percent.

(c)Calculation of housing units

(1)Housing and urban development requirements

In calculating the number of housing units in the jurisdiction of an eligible recipient under any provision of this section, the Secretary shall—

(A)use the Current Address Count Listing Files and other data products, as needed, of the Bureau of the Census tabulated from the Master Address File; and

(B)make calculations at the block level, using boundaries that reflect the most current boundaries.

(2)Census Bureau and Postal Service requirements

The Bureau of the Census and the United States Postal Service shall provide any relevant data to the Secretary upon request to assist the Secretary in making a calculation described in paragraph (1).

(3)Adjustment of calculation periods

The Secretary may adjust the calculation periods under subparagraphs (A) and (B) of subsection (a)(2), subparagraphs (A) and (B) of subsection (a)(6), and items (aa) and (bb) of subsection (b)(2)(A)(ii)(II) by not more than 2 months to achieve alignment with the data provided by the Bureau of the Census.

(d)Annual report on housing growth improvement rate

Before allocating funds under section 106 for a fiscal year, the Secretary shall publish a report that—

(1)includes the housing growth improvement rate for each eligible recipient; and

(2)lists, for the most recent fiscal year for which allocations were made under section 106—

(A)the eligible recipients that received a bonus amount under subsection (b)(2)(A); and

(B)the eligible recipients for which the allocation under section 106 was decreased under subsection (b)(2)(B) of this section.

(e)Notification; implementation dates

(1)Notification

(A)In general

Not later than 60 days after July 11, 2026, the Secretary shall notify each eligible recipient of the recipient’s housing growth improvement rate and whether that housing growth improvement rate is above, at, or below the median housing growth improvement rate for all eligible recipients other than extremely high-growth recipients.

(B)Guidance

As part of the notification under subparagraph (A), the Secretary shall share guidance, including resources developed by the Department of Housing and Urban Development, on best practices and recommendations for policies to reduce regulatory barriers to housing and increase housing supply.

(2)Implementation dates

Subsection (b) shall take effect beginning with the third full fiscal year after July 11, 2026, and remain in effect through fiscal year 2043.

(3)No effect on previous appropriations

This section shall not apply to amounts appropriated before July 11, 2026.

Reference

Citations & Metadata

Citation

42 U.S.C. § 19507

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110