U.S. Rep. Adam Schiff is making yet another attempt to address America’s housing crisis, this time through a proposal to convert government-owned buildings into affordable housing.
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U.S. Rep. Adam Schiff, D-Calif., is making another attempt to address America’s housing crisis, this time with a proposal to convert government-owned buildings into affordable housing.
this Affordable Housing Conversion Act $1.25 billion will be allocated over five years to identify unused and underutilized government buildings and convert them into rental units for people with incomes below the area median income listed by the Department of Housing and Urban Development (HUD) of 50 % to 80% of households.
Rep. Adam Schiff
“At a time when so many Americans continue to struggle to find safe, affordable housing, the Government Facilities to Affordable Housing Conversion Act represents a step forward in our efforts to address the housing crisis,” Schiff said in a statement Tuesday afternoon. A step forward.” “By repurposing outdated government buildings, we can not only use our resources efficiently but also increase the supply of affordable housing.”
“We cannot stand by while a housing shortage displaces families and erodes the middle class,” he added. “It’s time for a broad strategy to ensure every American has a safe, affordable place to call home.”
If passed, the bill would require the Department of Housing and Urban Development, the Administrator of General Services, and the Director of the Office of Management and Budget to prepare annual reports analyzing the government’s real estate portfolio and which portions are eligible for conversion.
The bill also includes the creation of a $250 million annual grant fund from 2025 to 2030. This grant fund will enable states, federally recognized Indian tribes and local governments to purchase buildings that are eligible for renovation.
Buildings in the retrofit plan must maintain a specific income mix, reserving at least 60 percent of the units for households earning no more than 50 to 60 percent of the area median income. The remaining 40 percent of the units could be occupied by households earning no more than 80 percent of the area median income.
A household’s total housing costs – including water, sewage, electricity, heating, cooling, garbage and recycling – cannot exceed 30% of a resident’s predetermined monthly income limit, a percentage widely considered the standard for affordability in public housing spaces.
Schiff and the bill’s co-sponsor, Rep. Jimmy Gomez, D-Calif., did not provide an estimate of how many buildings would qualify for the program.But, that los angeles daily newsThe company, which was first to report on the bill earlier Tuesday, said Approximately 45,000 buildings meet the Act’s criteria.
Kevin Sears | President, National Association of Real Estate
Kevin Sears, president of the National Association of Realtors, said the bill is key to closing the nation’s growing inventory gap.
“The United States is facing an unprecedented shortage of housing inventory. As a result, renters face increased housing costs and an undersupply of 5.5 million units,” Sears said in a written statement. “The National Association of Realtors thanks Congressman Schiff for introducing the Government Facilities to Affordable Housing Conversion Act, which encourages the conversion of vacant government buildings into affordable housing.”
“It is critical that Congress creates new ways to incentivize affordable housing development, and NAR commends Congressman Schiff for his leadership on this issue,” he added.
This is the second home improvement bill Schiff has introduced.
In 2023, he sponsored the Hotel Rehabilitation Act of 2023 (H.R. 3117), which would invest $750 million to transform hotels, motels, and unused residential properties for homeless people and those facing insecurity. Transitional and permanent housing for people at risk of homelessness.
The bill was introduced in May and referred to the House Financial Services Committee, where it has stalled since.
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