42 U.S.C. § 12757 — Revitalizing empty structures into desirable environments

(a) Definitions: This section defines six terms. "Attainable housing" means housing for households earning up to 120% of the area median income, where most units are affordable to households earning up to 60% of area median income. A "converted housing unit" is a housing unit created with a covered grant. A "covered grant" is a grant awarded under the Pilot Program. An "eligible entity" is a participating jurisdiction. The "Pilot Program" is the pilot program set up in subsection (b). A "vacant and abandoned building" is a property built as a warehouse, factory, mall, strip mall, hotel, or other industrial or commercial building, where either (i) a code inspection found it unsafe and the owner^* did nothing to fix it for at least 90 days after being told, or (ii) it is under a court-ordered receivership or nuisance abatement for abandonment, or otherwise counts as abandoned under state^* law.

(b) Purpose of grant program: If Congress provides the money, the Secretary^* may set up a competitive pilot grant program running from fiscal year 2027 through 2031. Its purpose is to help eligible entities turn vacant, abandoned buildings into attainable housing.

(c) Amount of grant:
(1) In general: In any fiscal year where at least $100,000,000 is available for the Pilot Program, each grant must be between $1,000,000 and $10,000,000.
(2) Fiscal years with lower funding: In a fiscal year with less than $100,000,000 available, the Secretary must try to award as many grants as possible.

(d) Relation to formula allocation: A covered grant is on top of the jurisdiction's regular formula allocation under section 12747. It does not reduce that formula allocation.

(e) Priority: The Secretary must give priority to an eligible entity that will (1) use the grant in an economically distressed community; (2) use the grant in a qualified opportunity zone; (3) use the grant to build housing that meets a need identified in its consolidated plan; or (4) has passed local laws cutting regulatory barriers to converting vacant buildings into housing — not counting any change to safety or habitability rules.

(f) Use of funds: An eligible entity may use its grant for (1) buying property, (2) demolition, (3) cleaning up health hazards, (4) preparing the site, (5) construction, renovation, or rehabilitation, or (6) starting, maintaining, or growing community land trusts or housing cooperatives.

(g) Waiver authority: The Secretary may waive, or set alternative rules for, any statute or regulation the Secretary administers in connection with these grants — except rules on fair housing, nondiscrimination, labor standards, or the environment — if the Secretary publicly finds good cause for the waiver.

(h) Study; report: Within 180 days after the Pilot Program ends, the Secretary must study and report to Congress on its impact on (1) improving local tax bases, (2) increasing access to affordable housing^*, especially for elderly people, disabled people, and veterans, (3) increasing homeownership, and (4) removing blight.