Build More Housing Near Transit Act of 2025
- Sponsor
- Sen. Schatz, Brian [D-HI]
- Committees
- Banking, Housing, and Urban Affairs Committee (primary)
- Last action
- Jul 21, 2025
Bottom line
This bill aims to leverage federal transit funding to encourage local governments to adopt policies that promote the construction and preservation of affordable housing near public transportation.
What it actually does
This bill amends title 49, United States Code, specifically Section 5309, to integrate affordable housing incentives into federal capital investment grants for public transportation projects. It defines "pro-housing policy" to include actions such as reducing parking minimums, establishing by-right approval for multi-family housing, and eliminating minimum lot sizes. Projects that demonstrate such policies in areas near transit facilities can receive an increased rating in the grant evaluation process, and federal agencies must report on the outcomes of these adjusted projects.
Proponents argue
Supporters argue that by linking federal transit funding to pro-housing policies, the bill will incentivize local governments to address housing shortages and affordability crises, particularly in transit-rich areas. This approach can reduce commutes, lower transportation costs for residents, decrease carbon emissions, and foster more equitable and sustainable communities by ensuring diverse housing options near essential services.
Opponents contend
Critics might contend that this bill represents federal overreach into local land-use decisions, which are traditionally managed at the state and municipal levels. They may argue that tying housing policies to transit grants could disproportionately benefit certain types of development or lead to unintended consequences for existing communities, potentially undermining local control and unique community characteristics.
The bill is very short and clearly written, making it highly accessible for a reader to understand its core provisions and implications.
Section 2(1), amending 49 U.S.C. 5309(a)
Establishes a Definition for "Pro-Housing Policy"
This provision defines "pro-housing policy" as any state or local action that removes regulatory barriers to constructing or preserving housing units, including affordable housing. It specifically lists examples such as reducing or eliminating parking minimums, establishing by-right approval processes for multi-family housing, reducing minimum lot sizes, committing publicly-held real property to housing development, and eliminating or raising residential property height limits.
Supporters argue
Supporters argue this definition provides clear guidance to states and localities on what types of policies the federal government seeks to encourage, directly addressing common regulatory barriers that hinder housing production and affordability.
Critics contend
Critics might contend that the specific examples listed could be overly prescriptive, potentially forcing local governments into a "one-size-fits-all" approach that doesn't account for unique local conditions or preferences.
Tradeoffs
This provision balances the federal goal of increasing housing supply and affordability with local control over zoning and land use decisions.
Section 2(2), amending 49 U.S.C. 5309(g)(2)
Allows for a 1-Point Increase in Project Justification Rating
This provision allows the Secretary of Transportation to increase a project's rating by one point on a five-point scale (e.g., from "medium" to "medium-high") if the applicant submits documented evidence of pro-housing policies in areas within walking distance of, and accessible to, transit facilities along the project route. The Secretary must consult with the Secretary of Housing and Urban Development to develop a methodology for evaluating the expected housing outcomes from these policies.
Section 2(3), amending 49 U.S.C. 5309(o)
Mandates Reporting on Projects Receiving Rating Adjustments
This provision requires the Secretary of Transportation to include specific information in an annual report to Congress. For projects that received a rating adjustment due to pro-housing policies, the report must detail the policies submitted by the applicant and the expected amount of housing units (including affordable housing) resulting from those policies, as measured by the methodology developed in consultation with HUD.