HUD would fund shelter and supportive housing projects

HUD would award grants to eligible groups for shelters and permanent supportive housing. Eligible applicants include state, local, and tribal governments, tribally designated housing groups, public housing agencies, and tax-exempt charitable organizations. Individuals, foreign entities, and sole proprietorships are excluded. Groups must apply, and grants could be awarded only from money Congress provides for the program. The bill authorizes $500 million for each fiscal year from 2027 through 2031; awards still depend on Congress providing funds.

Grant recipients could use the money for construction, repairs, property, and other physical improvements related to housing and homelessness. The grant may support a shelter or permanent supportive housing, or physical infrastructure needed to house people and prevent, respond to, or end homelessness. Examples include energy upgrades, mobile health clinics, day centers, rapid rehousing, safe parking, and safer or more accessible buildings. Recipients could use no more than 10 percent of the grant for project administration.

HUD would divide grant money evenly between shelters and supportive housing, while reserving minimum shares for tribal and rural groups. These distribution and construction rules apply to grants awarded under the proposed program. At least 5 percent would go to tribal governments and tribally designated housing groups, and at least 40 percent to eligible groups in rural areas. HUD could prioritize projects serving groups named in the bill, including people fleeing violence, youth, LGBTQ+ people, and people of color. HUD could not reject a group because it is faith-based, but could not award a grant to a group that discriminates based on sexual orientation, gender identity, or sex stereotypes. Grant-funded construction would have to use materials that meet federal domestic-content rules and pay workers at prevailing wage rates.