APARTMENT ADVOCATE
• Why it matters: The program aims to preserve and improve existing housing stock, including rental housing. Property owners renting to residents who are not already under other rental assistance programs are subject to certain requirements, including rent increase limits( capped at five percent or the change in inflation, whichever is lower, for at least three years after completion of repairs) and other resident protections such as lease extensions requirements with specified exceptions.
Sec. 204. Addition of affordable housing construction as an eligible activity.
• What it does: Explicitly allows Community Development Block Grant( CDBG) funding to be utilized for the construction of affordable housing under CDBG funding with a cap of 20 percent of the amounts allocated to the recipient.
• Why it matters: The new flexibilities in this law will allow CDBG recipients to allocate their funding to directly finance new affordable housing construction.
Sec. 206. Unlocking Housing Supply Through Streamlined and Modernized Reviews Act.
• What it does: Directs HUD to streamline environmental reviews for housing related activities by expanding exemptions and categorical exclusions under HUD’ s environmental review regulations. It allows many routine and lower-impact activities, such as rental assistance, small-scale rehab, predevelopment work and limited new construction, to move forward more quickly with reduced regulatory burden.
• Why it matters: The provision prioritizes infill development and smaller housing projects, including
" This“ carrot and stick” approach will help incentivize communities to find new ways to increase housing supply and will discourage exclusionary zoning, permitting delays, arbitrary barriers and other policies that limit supply. "
office-to-residential conversions, to accelerate redevelopment of underutilized sites. HUD must also report reductions in review times and costs.
Sec. 211. Housing Affordability Act.
• What it does: This section significantly increases FHA multifamily loan limits across several programs to better reflect current construction costs and market conditions, while establishing a new index-based approach to adjust limits annually.
• Why it matters: The updates are intended to improve the feasibility of financing new and existing multifamily housing developments. The provision also preserves HUD’ s authority to adjust for high-cost areas and requires a study on the impacts of higher loan limits, including effects on lending volume, housing supply and costs.
Sec. 213. Build Now Act.
• What it does: Incentivizes cities and counties to increase housing production by increasing or decreasing CDBG funding based on a jurisdiction ' s housing growth improvement rate over the preceding five years relative to other eligible recipients. Jurisdictions with a housing growth rate of at least four percent will automatically receive increased funding. This law will go into effect after three years and expire in 2043.
• Why it matters: This“ carrot and stick” approach will help incentivize communities to find new ways to increase housing supply and will discourage exclusionary zoning, permitting delays, arbitrary barriers and other policies that limit supply.
Sec. 505. New Moving to Work cohort.
• What it does: Authorizes HUD to create a new cohort of 25 Moving to Work( MTW) designated Public Housing Agencies( PHAs) named the“ Economic Opportunity and Pathways to Independence Cohort.” MTW demonstration gives PHAs flexibility to use approved waivers of HCV and public housing programs regulations. The bill also allows HUD to consider policy options for positive rental payment reporting to credit bureaus with resident consent.
• Why it matters: The PHAs in this cohort may explore new administrative and programmatic flexibility to improve the HCV program’ s effectiveness. Participating PHAs are required to publicize data on eviction rates, turnover, waitlist length, average wait times and more. HUD will use this data to provide legislative recommendations to improve the HCV program. Furthermore, positive rental payment reporting may strengthen payment behavior in residents and reduce late payments. www. aamdhq. org TRENDS AUGUST 2026 | 45