Federal program converts vacant hotels into homeless housing, $1B annually
H.R. 1042 — Project Turnkey Act · Filed by Suzanne Bonamici (D-OR) · 15 cosponsors · Introduced Feb 6, 2025 · Referred to committee
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What it does
This bill creates a new federal grant program called Project Turnkey that gives $1 billion annually to states, cities, nonprofits, and housing agencies to convert vacant hotels and motels into affordable housing and emergency shelters for homeless people, those at risk of homelessness, and people fleeing domestic violence. Eligible entities can use up to 15% of funds for planning and administration, and the program waives many standard housing program requirements to speed up conversions.
Why we flagged it
The bill's core mechanism is a federal grant program designed to rapidly convert vacant commercial properties into affordable housing and emergency shelter. The operative purpose is expanding housing supply and shelter capacity for vulnerable populations, not market deregulation or private subsidy.
What the text implies
- Waiver authority in section (h) allows Secretary to override fair-housing, nondiscrimination, labor standards, and environmental requirements — this broad discretion could permit conversions that cut corners on accessibility, worker protections, or environmental remediation if not carefully administered.
- Program allows nonprofits and CDFIs as eligible entities, creating potential for mission drift if organizations prioritize operational capacity-building (5% of funds) over direct housing provision.
The full analysis lists 4 implications of this text.
Who stands to gain
nonprofit housing organizations; community development corporations; community development financial institutions