Three U.S. senators—two Democrats and one Republican—will introduce the Housing Supply and Affordability Act that would authorize $1.5 billion for federal grants to local governments.
The funds, to be distributed over the next five years, would be available to communities that commit to increasing their supply of local housing. Local leaders could use the funds to overcome obstacles to new construction, such as density-unfriendly or discriminatory zoning regulations.
Eligible local governments could apply for grants to devise housing policy plans to spur new construction. The bill is designed to help rural areas and smaller cities that struggle with different housing problems than high-cost coastal metro areas. At least 10% of funds would be required to go to governments in rural areas
The bill could end up being encompassed by the $3 trillion infrastructure bill under development by the Biden Administration, according to a Bloomberg news report.
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