Faith-Based Affordable Housing Predevelopment Fund Act

This Act may be cited as the Faith-Based Affordable Housing Predevelopment Fund Act.

(a) In general. The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this section establish a program to provide grants to eligible entities on a competitive basis to fund pre-development activities associated with the new construction or rehabilitation of housing that qualifies as affordable (as described in section 215 of the Cranston-Gonzalez National Affordable Housing Act) on land owned by faith-based organizations.

(b) Program duration. The grant program established under subsection (a) shall terminate 5 years after the Secretary establishes such grant program.

(c) Priority. When awarding grants under subsection (a), the Secretary shall give priority to eligible entities that have a demonstrated track record of working with faith-based organizations or developing housing, as determined by the Secretary.

(d) Use of amounts. Any eligible entity that receives amounts under this section shall use such amounts for pre-development expenses associated with new construction or rehabilitation of housing that qualifies as affordable (as described in section 215 of the Cranston-Gonzalez National Affordable Housing Act) on land owned by the faith-based organization, including expenses associated with—

(1) initial architectural and engineering schematic designs;

(2) environmental reviews and assessments;

(3) feasibility studies;

(4) legal work;

(5) preparing applications for financing to cover expenses associated with the construction of housing that qualifies as affordable (as described in section 215 of the Cranston-Gonzalez National Affordable Housing Act);

(6) performing market studies;

(7) hiring project consultants; and

(8) such other costs as the Secretary determines appropriate.

(e) Training and technical assistance. Each eligible entity that receives a grant under this section—

(1) shall provide training and technical assistance to each faith-based organization associated with pre-development expenses funded by such eligible entity using amounts provided under this section; and

(2) may use amounts provided under this section to provide such training and technical assistance.

(f) Report. Not later than 180 days after termination of the grant program under subsection (b), the Secretary shall conduct a study and submit a report to Congress on the impact of the grant program that includes—

(1) a description of any impacts the grant program had on increasing the amount of affordable rental housing;

(2) a description of any impacts the grant program had on increasing homeownership units;

(3) a best practices identified through the grant program; and

(4) any recommendations for improving the grant program.

(g) Authorization of appropriations. There is authorized to be appropriated to the Secretary $100,000,000 in fiscal year 2027 to carry out this section and such amounts shall be available to carry out this section through the end of fiscal year 2031.

(h) Definitions. In this section:

(1) Eligible entities. The term eligible entity means—

(A) a State (as such term is defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act);

(B) a unit of general local government (as such term is defined under section 104 of the Cranston-Gonzalez National Affordable Housing Act);

(C) a nonprofit organization (as such term is defined under section 104 of the Cranston-Gonzalez National Affordable Housing Act); and

(D) a community development financial institution (as such term is defined in section 104(a)(1) of the Community Development Banking and Financial Institutions Act of 1994).

(2) Faith-based organization. The term faith-based organization shall have the meaning given the term by the Secretary and shall include any entity that is assisted by the Center for Faith at the Department of Housing and Urban Development.

(3) Secretary. The term Secretary means the Secretary of Housing and Urban Development.