Federal program converts vacant hotels into homeless housing, $1B annually

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.
• Funds remain available until 2035, creating a long tail of federal commitment; if appropriations lapse or are redirected, projects mid-conversion could face funding cliffs.
• Definition of 'hotel' and 'motel' tied to ADA section 301(7)(A) and 'no longer affecting commerce' — this language may exclude properties still in marginal commercial use, narrowing the pool of convertible assets.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The program directly expands housing and shelter capacity for vulnerable populations (homeless individuals, at-risk families, domestic violence survivors) by converting underutilized commercial properties. The $1 billion annual authorization, combined with waivers of burdensome procedural requirements, accelerates conversion timelines and reduces administrative friction that typically delays housing projects.

Who stands to gain

• nonprofit housing organizations
• community development corporations
• community development financial institutions
• state and local housing agencies

Named in the bill

Department of Housing and Urban Development (HUD), HOME Investment Partnerships Act, McKinney-Vento Homeless Assistance Act, Continuum of Care program, Community Development Corporations, Community Development Financial Institutions, Public Housing Agencies

Where it stands

16 cosponsors: 16 Democrats.

• Feb 6, 2025 — Introduced · Congress.gov: “Introduced in House”
• Feb 6, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 2 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $410,000 in lobbying spend. A filing names 6 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Suzanne Bonamici, the sponsor, reported $461,650 in PAC receipts in the 2026 cycle.

• Terrapower, LLC — $410,000 on 2 filings

Lobbying Disclosure Act filings through Jul 10, 2026. A filing shows who paid to lobby on a bill it names, not what changed.