New bill aims to ‘unlock’ affordable housing funding

U.S. Reps. Sam Liccardo, D-Calif., and Mike Flood, R-Neb., introduced legislation Tuesday aimed at making it easier for cities to use federal money to build affordable housing.

The Unleashing Needed Local Options to Construct and Keep Housing (UNLOCK) Act would loosen restrictions on how municipalities spend Community Development Block Grant (CDBG) funds.
Efforts stem from feedback gathered by the House Subcommittee on Housing, which sought input from local governments on ways to reduce red tape in federal housing programs.

“When Mountain View shared their idea, I jumped at the chance to bring this idea to fruition in Congress,” Liccardo said — referring to the city in his district that recommended expanding CDBG flexibility. “As Mayor of San Jose, I saw firsthand how cities are forced to face the brunt of the housing crisis without the federal money to match the magnitude. Easing restrictions on municipalities’ use of CDBG funds will help us meet our communities’ growing needs faster.”

Mountain View, Calif., officials said the city has five affordable housing projects in its pipeline that could benefit from the change.

Flood said the measure would also help communities in his state.

“The CDBG program has long been an important tool for Nebraska cities to fund important local projects,” he said. “This targeted legislation would give communities across the state the flexibility to use CDBG dollars to directly address housing supply needs.”

The bill has backing from the U.S. Conference of Mayors, National Association of Counties, National League of Cities and other national housing organizations.

Other current affordable housing initiatives

Federal and regional leaders are ramping additional efforts to address the nation’s affordable housing shortage through new funding, tax incentives and streamlined regulations.

U.S. Treasury Secretary Scott Bessent said this week that the administration plans to roll out additional measures aimed at tacking housing affordability in the coming weeks as part of what Trump is calling a “national housing emergency.”

Recent rules also speed up permitting, encourage energy-efficient construction and repurpose surplus federal land and buildings for affordable homes.

On Capitol Hill, bipartisan support is growing with Sens. Tim Scott and Elizabeth Warren’s Road to Housing Act.