(a) Definitions
In this section:
(1) Attainable housing
The term "attainable housing" means housing that serves households earning not more than 120 percent of the area median income, if the majority of the housing units are affordable to households earning not more than 60 percent of the area median income.
(2) Converted housing unit
The term "converted housing unit" means a housing unit that is created using a covered grant.
(3) Covered grant
The term "covered grant" means a grant awarded under the Pilot Program.
(4) Eligible entity
The term "eligible entity" means a participating jurisdiction.
(5) Pilot Program
The term "Pilot Program" means the pilot program established under subsection (b).
(6) Vacant and abandoned building
The term "vacant and abandoned building" means a property—
(A) that was constructed for use as a warehouse, factory, mall, strip mall, or hotel, or for another industrial or commercial use; and
(B)(i) with respect to which—
(I) a code enforcement inspection has determined that the property is not safe; and
(II) not less than 90 days have elapsed since the owner was notified of the deficiencies in the property and the owner has taken no corrective action; or
(ii) that is subject to a court-ordered receivership or nuisance abatement related to abandonment pursuant to State or local law or otherwise meets the definition of an abandoned property under State law.
(b) Purpose of grant program
Subject to the availability of funds appropriated for this subsection, the Secretary is authorized to establish a pilot program, spanning from fiscal years 2027 through 2031, which shall have the purpose of awarding grants on a competitive basis to eligible entities to convert vacant and abandoned buildings into attainable housing.
(c) Amount of grant
(1) In general
For any fiscal year for which not less than $100,000,000 is made available to carry out the Pilot Program, the amount of a covered grant shall be not less than $1,000,000 and not more than $10,000,000.
(2) Fiscal years with lower funding
For any fiscal year for which less than $100,000,000 is made available to carry out the Pilot Program pursuant to subsection (b), the Secretary shall seek to maximize the number of covered grants awarded.
(d) Relation to formula allocation
A covered grant awarded to an eligible entity shall be in addition to, and shall not affect, the formula allocation for the eligible entity under section
12747 of this title.
(e) Priority
In awarding covered grants, the Secretary shall give priority to an eligible entity that—
(1) will use the covered grant in a community that is experiencing economic distress;
(2) will use the covered grant in a qualified opportunity zone (as defined in section
1400Z–1(a) of title 26);
(3) will use the covered grant to construct housing that will serve a need identified in the comprehensive housing affordability strategy and community development plan of the eligible entity under part 91 of title 24, Code of Federal Regulations, or any successor regulation (commonly referred to as a "consolidated plan"); or
(4) has enacted ordinances to reduce regulatory barriers to conversion of vacant and abandoned buildings to housing, which shall not include any alteration of an ordinance that governs safety and habitability.
(f) Use of funds
An eligible entity may use a covered grant for—
(1) property acquisition;
(2) demolition;
(3) health hazard remediation;
(4) site preparation;
(5) construction, renovation, or rehabilitation; or
(6) the establishment, maintenance, or expansion of community land trusts or housing cooperatives.
(g) Waiver authority
In administering covered grants, the Secretary may waive, or specify alternative requirements for, any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by eligible entities of covered grant funds (except for requirements related to fair housing, nondiscrimination, labor standards, or the environment) if the Secretary makes a public finding that good cause exists for the waiver or alternative requirement.
(h) Study; report
Not later than 180 days after the termination of the Pilot Program, the Secretary shall study and submit to Congress a report on the impact of the Pilot Program on—
(1) improving the tax base of local communities;
(2) increasing access to affordable housing, especially for elderly individuals, disabled individuals, and veterans;
(3) increasing home-ownership; and
(4) removing blight.