This bill establishes a competitive grant program through the Department of Housing and Urban Development (HUD) to encourage and reward local governments and Indian tribes that have successfully demonstrated an objective improvement in their local housing supply. The program defines attainable housing as serving households primarily below 80% or 60% of the area median income, with overall limits of 100% or 120% AMI, respectively. Eligible entities, including metropolitan cities and urban counties, must have their housing supply growth determined by a HUD methodology published for public comment.

Grant funds can be utilized for a broad range of purposes, including activities typically covered under the Community Development Block Grant program, local and regional project assistance, or as matching funds for certain environmental protection programs. Crucially, funds can also support initiatives that specifically facilitate the expansion of attainable housing. These initiatives may involve increasing by-right uses for multi-family dwellings, revising or eliminating restrictive zoning requirements like parking minimums or lot sizes, and streamlining regulatory processes to reduce construction costs and promote denser, more affordable development.

To receive a grant, applicants must detail their proposed use of funds, provide data on their housing supply growth over the past three years, and explain how their initiatives align with community needs and housing affordability strategies. The Secretary of HUD is mandated to award not fewer than 25 grants annually, ranging from $250,000 to $10,000,000, with priority given to entities demonstrating innovative policies and significant housing supply growth. The bill explicitly states that it does not authorize HUD to mandate or supersede local zoning or land use policies, and authorizes $200,000,000 for each fiscal year from 2027 through 2031, subject to inflation adjustment.