Congress funds conversion of abandoned buildings into affordable housing
S. 2460 — RESIDE Act · Filed by Jim Banks (R-IN) · 1 cosponsor · Introduced Jul 24, 2025 · Referred to committee
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What it does
This bill creates a five-year pilot program (2027–2031) that gives up to $100 million per year in federal grants to cities and counties to convert abandoned commercial buildings (warehouses, factories, malls, hotels) into affordable housing. Eligible entities receive $1–10 million grants to buy, demolish, remediate, and rebuild these properties into homes for households earning up to 100–120% of area median income. The program prioritizes distressed communities, opportunity zones, and jurisdictions that have reduced zoning barriers to conversion.
Why we flagged it
The bill's core mechanism is a competitive grant program to convert vacant commercial properties into affordable housing. It is a straightforward federal subsidy for local housing development with clear eligibility criteria and public-interest objectives.
What the text implies
- The waiver authority (Section 8) permits HUD to override most federal statutes and regulations except fair housing, nondiscrimination, labor, and environmental rules. This broad discretion could allow HUD to waive accessibility, historic preservation, or other protections on a case-by-case basis if deemed in the public interest.
- The program is contingent on HOME Investment Partnerships Program funding exceeding $1.35 billion annually. If HOME funding drops below that threshold, the pilot receives no funding, making the program vulnerable to appropriations cuts or reallocation.
The full analysis lists 4 implications of this text.
Who stands to gain
Local housing authorities and nonprofits (eligible entities receiving grants); Construction and real estate development firms (contractors hired for conversion work); Community land trusts (eligible use of grant funds)