S.Amdt. 4388

This amendment proposes the creation of a "Freedom to Build" designation for local governments. Its purpose is to encourage localities to remove regulatory barriers that limit the housing supply and increase housing costs.

How Localities Qualify

Localities can earn this designation in one of two ways:

• Reform Adoption: Certifying that they have adopted a minimum number of reforms (at least 3 from each category) in three specific areas:
  • Construction Innovation: Removing barriers to modern methods like modular or off-site construction.
  • Approval Processes: Fast-tracking permits and reducing the time and cost of development approvals.
  • Property Rights and Consumer Freedom: Eliminating government mandates that restrict how things are built or used, such as prohibiting rent control on new units or banning growth moratoria.
• Housing Supply Outcomes: Demonstrating sustained growth in housing supply based on a target set by the Secretary of Housing and Urban Development.

Benefits of the Designation

Localities with this designation would receive several advantages:

• Funding and Grants: At least 25 percent of certain funds would be reserved for these communities, and they would receive preferential scoring for grants.
• Easier Processes: The Secretary may provide streamlined application procedures and reduced reporting requirements.
• Safe Harbor: These communities would be exempt from certain funding reductions and remain eligible for assistance bonuses.

Accountability and Oversight

• Duration: The designation lasts for 5 years and must be renewed.
• Transparency: The Secretary must maintain a public website listing all designated localities, updated at least annually.
• Revocation: The designation can be taken away if a locality reverses its reforms or fails to meet its housing growth targets.