Project Turnkey Act
- Sponsor
- Rep. Bonamici, Suzanne [D-OR-1]
- Committees
- Financial Services Committee (primary)
- Last action
- Feb 6, 2025
Bottom line
The Project Turnkey Act aims to rapidly expand affordable housing and shelter capacity nationwide by repurposing vacant commercial properties and providing direct assistance to vulnerable populations through significant federal investment and streamlined regulations.
What it actually does
This bill establishes a new Project Turnkey Program under the HOME Investment Partnerships Act, authorizing $1 billion annually for eligible entities to acquire, rehabilitate, and operate vacant hotels, motels, and other properties for affordable housing and shelter. It also provides funding for rental assistance and supportive services for qualifying individuals and families, while waiving several traditional HOME program requirements to expedite implementation.
Proponents argue
Proponents argue that this bill offers a critical and rapid response to the national housing and homelessness crisis by repurposing underutilized commercial properties into much-needed affordable housing and shelter. They emphasize its flexibility for states and local entities, the provision of comprehensive supportive services, and the streamlined process through waivers of traditional HOME program requirements, allowing for quicker deployment of resources to vulnerable populations.
Opponents contend
Opponents might raise concerns about the significant annual appropriation of $1 billion, questioning its long-term fiscal sustainability and potential impact on the national debt. They may also argue that converting commercial properties might not always be the most cost-effective or suitable solution for permanent affordable housing, and that the waivers of certain HOME program requirements could lead to reduced oversight or less stringent development standards.
The bill is relatively short and its core provisions are straightforward, allowing for a quick understanding of its main objectives, though understanding the implications of amending existing acts requires some background knowledge.
Section 2, new Section 272(a)
Establishment of Project Turnkey Program
This provision formally establishes the Project Turnkey Program within the HOME Investment Partnerships Act, authorizing the Secretary of Housing and Urban Development (HUD) to award funds to eligible entities. The program's purpose is to increase housing and shelter capacity and provide assistance to individuals and families experiencing or at risk of homelessness.
Supporters argue
Supporters argue this program is a direct and necessary response to the housing crisis, providing a dedicated funding stream to address homelessness and housing insecurity with a focus on rapid deployment.
Critics contend
Critics might argue that creating new programs adds to bureaucratic complexity rather than streamlining existing efforts, or that the focus on specific types of conversions might be too narrow.
Tradeoffs
Balances the need for rapid response to housing crises with the potential for creating a new administrative layer within existing federal housing programs.
Section 2, new Section 272(b)
Permitted Uses of Funds by Eligible Entities
This section details how eligible entities can use the received funds. It allows up to 15% for administrative and planning costs, and up to 5% for operating expenses of community housing development organizations (CHDOs) and nonprofit organizations, provided these funds build capacity and comply with existing limitations. It also encourages contracting with service providers to cover actual total program costs and administrative overhead.
Section 2, new Section 272(e)
Annual Funding Authorization
This provision authorizes an annual appropriation of $1,000,000,000 (one billion dollars) to carry out the Project Turnkey Program. This funding is in addition to amounts otherwise available under the HOME Investment Partnerships Act, signaling a significant and dedicated federal investment.
Section 2, new Section 272(f) and (g)
Fund Availability and Allocation
Funds appropriated under this section will remain available until 2035. The Secretary shall allocate amounts to grantees that received allocations under section 217 (HOME program formula grantees) in fiscal year 2025. Up to $25 million can be used for technical assistance and capacity building, and up to $50 million for the Secretary's administration and implementation costs.
Section 2, new Section 272(g)(4)
Secretary's Authority to Waive Requirements
This provision grants the Secretary of HUD broad authority to waive or specify alternative requirements for most provisions of the Cranston-Gonzalez National Affordable Housing Act (which includes the HOME program) and the McKinney-Vento Homelessness Act, or their regulations. This is allowed if necessary to expedite or facilitate the use of funds, but explicitly excludes requirements related to fair housing, nondiscrimination, labor standards, and the environment.
Section 2, new Section 272(h)
Exemptions from Specific HOME Program Requirements
This provision explicitly states that several key HOME Investment Partnerships Act requirements will not apply to amounts appropriated under the Project Turnkey Program. These include cost limits (section 212(e)), commitment requirements (section 218(g)), matching requirements (section 220), and the set-aside for housing developed by community housing development organizations (CHDOs) (section 231).
Section 2, new Section 272(i)(3)
Scope of Eligible Activities
This section broadly defines 'eligible activity' to include rental assistance (rent, security, utility payments), any eligible use of investments under existing HOME section 212(a), supportive services (including those from McKinney-Vento and housing counseling), acquisition/development/operation of non-congregate shelter or affordable rental housing, rehabilitation/conversion of vacant properties (hotels, motels, schools, hospitals, office buildings), repair/expansion of shelters, and any other purpose determined by the Secretary.
Section 2, new Section 272(i)(1)
Beneficiary Eligibility Criteria
This provision defines 'qualifying individual or family' to include those who are homeless, at-risk of homelessness (as defined by McKinney-Vento), fleeing domestic violence, dating violence, sexual assault, stalking, or human trafficking, or are homeless children/youth or youth experiencing homelessness. This clarifies who is eligible to receive assistance under the program.
The definitions of "hotel" and "motel" refer to section 301(7)(A) of the Americans with Disabilities Act of 1990 (42 U.S.C. 12181(7)(A)) but then add the crucial modifying clause "that are no longer affecting commerce (as such term is defined in such section 301)."
Section 2, new Section 272(i)(4) and (5) (definitions of "Hotel" and "Motel")
Why it matters:This is likely standard legislative practice to precisely define the scope of properties eligible for conversion, focusing on truly vacant or disused properties rather than active businesses. It prevents the program from being used to acquire and convert operational hotels/motels that are still part of the commercial market, avoiding disruption and potential legal challenges.
Case for: Supporters would argue this ensures the program targets genuinely underutilized properties, preventing disruption to existing businesses and focusing resources on properties that are already a drag on local economies or sitting vacant. It also avoids potential legal challenges from active businesses.
Case against: Critics might argue that the phrase "no longer affecting commerce" could be open to interpretation or create an unnecessary hurdle, potentially excluding properties that are functionally vacant but still technically "affecting commerce" in some minor way, thus limiting the pool of eligible properties for conversion.
Estimated impact: This clause narrows the scope of eligible properties, potentially reducing the number of available conversion projects and requiring careful due diligence by grantees to confirm eligibility.