,,ii #aaith ,,congress #b;d ,session ,s4 #dbfe ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bf1 #bjbf,mr4 ,hagerty introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to require the ,secretary of ,housing and ,urban ,development to establish a ,freedom to ,build designation for certain localities4 #a4 ,short title ,this ,act may be cited as the ,freedom to ,build ,act4 #b4 ,freedom to ,build designation 7a7 ,establishment 7#a7 ,in general ,not later than #ah months after the date of enactment of this ,act1 the ,secretary of ,housing and ,urban ,development shall establish a ,freedom to ,build designation for eligible localities that voluntarily qualify under subsection 7b7 or subsection 7c74 7#b7 ,list ,the ,secretary of ,housing and ,urban ,development shall maintain and publish on a publicly accessible website a list of all localities that have received a ,freedom to ,build designation1 updated not less frequently than annually4 7#c7 ,duration ,a ,freedom to ,build designation shall be effective for a #e-year period beginning on the date on which the designation is made and shall be renewable upon a demonstration of continued qualification under subsection 7b7 or subsection 7c74 7#d7 ,rule of construction ,nothing in this subsection shall be construed to require any locality to apply for or obtain a ,freedom to ,build designation4 7b7 ,qualification by reform adoption 7#a7 ,in general ,a locality may qualify for a ,freedom to ,build designation by certifying to the ,secretary of ,housing and ,urban ,development that the locality has adopted not fewer than the minimum number of reforms specified by the ,secretary under paragraph 7#c7 from each of the #c categories described in paragraph 7#b74 7#b7 ,categories of reform ,the ,secretary of ,housing and ,urban ,development shall1 through notice-and-comment rulemaking1 identify specific reforms within each of the following categories3 7,a7 ,unleashing construction innovation ,reforms that remove regulatory barriers to the use of modern construction technologies1 materials1 and methods1 including modular1 pre-fabricated1 panelized1 and other off-site construction techniques1 by aligning local requirements with nationally recognized standards and prohibiting differential treatment based on mode of construction4 ,such reforms may include-- 7i7 aligning local codes governing off-site construction with nationally recognized standards1 including standards published by the ,international ,code ,council2 7ii7 permitting emerging construction materials and methods without differential treatment based on whether or how a dwelling is fabricated2 and 7iii7 prohibiting local amendments to the model building code that add cost beyond what the nationally recognized code requires1 unless the locality demonstrates a specific safety basis for such amendment4 7,b7 ,fast-tracking the approval process ,reforms that reduce the time1 cost1 and uncertainty of the development approval process and provide builders with meaningful recourse when the process fails4 ,such reforms may include-- 7i7 by-right approval for projects that conform to applicable zoning and building codes1 without discretionary review2 7ii7 binding maximum timelines for permit decisions and inspections1 with clear remedies for the applicant1 which may include deemed approval or immediate administrative appeal1 when deadlines are not met2 7iii7 full public disclosure of all permits1 approvals1 inspections1 and associated fees that may be required1 and prohibition of undisclosed requirements or mid-process cost increases2 7iv7 limiting the impact fees and offsite charges to costs with a reasonable nexus to the specific development project2 7v7 authorizing builders to use qualified third-party inspectors for required inspections and to select licensed professionals of their choice for required studies2 7vi7 protecting approved development plans from the retroactive application of code changes adopted after the date on which approval was granted2 7vii7 limiting standing to challenge an approved development to parties who can demonstrate that the development would create a common-law nuisance or an immediate threat to health1 safety1 or welfare2 and 7viii7 an expedited dispute resolution process for denials and delays1 under which the jurisdiction bears the burden of demonstrating that its action is necessary to protect substantial public health1 safety1 or welfare interests1 and under which the builder may recover costs and damages for unreasonable delay4 7,c7 ,defending property rights and family freedom ,reforms that eliminate government mandates that restrict what may be built1 how it may be built1 who may build it1 what energy sources it may use1 or what owners and tenants may do with their property1 where such mandates exceed what is demonstrably required for prevention of physical injury4 ,such reforms may include-- 7i7 prohibiting rent control or rent stabilization on dwelling units1 which may exempt existing dwellings1 for which a certificate of occupancy is first issued after the date of designation2 7ii7 protecting the ability of property owners to promptly address nonpayment1 lease violations1 fraud1 and unauthorized occupancy2 7iii7 prohibiting mandatory below-market set-asides in new development unless the requirement is fully offset by a density bonus1 fee waiver1 or equivalent incentive voluntarily accepted by the builder2 7iv7 prohibiting wage1 residency1 or workforce-composition mandates on housing development projects beyond those imposed by generally applicable ,state law2 7v7 requiring that local building code provisions be consistent with evidence-based standards promulgated by the ,secretary of ,commerce1 the ,secretary of ,agriculture1 the ,secretary of ,housing and ,urban ,development1 the ,national ,institute of ,standards and ,technology1 or any other ,federal agency1 and eliminating non-safety-related local additions2 7vi7 authorizing builders to comply with a ,federally recognized energy rating index as an alternative to prescriptive energy efficiency codes1 and prohibiting mandates for electric-vehicle charging infrastructure or on-site renewable energy generation2 7vii7 prohibiting local ordinances that ban or effectively eliminate the choice of a property owner of a residential energy source2 7viii7 authorizing builders to design to any version of the applicable building or energy code adopted within a reasonable period1 as determined by the ,secretary of ,housing and ,urban ,development1 at the time of plan submission1 rather than only the most recently adopted edition2 7ix7 limiting regulatory layering1 including prohibiting ,state requirements that add to project costs beyond applicable ,federal requirements1 and prohibiting local requirements that add to project costs beyond applicable ,state requirements1 unless justified by documented jurisdiction-specific health or safety characteristics2 7x7 prohibiting growth moratoria1 construction caps1 or geographic containment boundaries that restrict where new housing may be built2 and 7xi7 prohibiting rules or policies that penalize or increase the cost of a housing development on the basis that it is primarily accessible by automobile4 7#c7 ,minimum thresholds ,the ,secretary of ,housing and ,urban ,development shall1 through notice-and-comment rulemaking1 establish the minimum number of reforms from each category described in paragraph 7#b7 that a locality must adopt to qualify for a ,freedom to ,build designation4 ,the minimum number shall be not fewer than #c reforms from each category4 7c7 ,qualification by housing supply outcomes 7#a7 ,in general ,as an alternative to qualification under subsection 7b71 a locality may qualify for a ,freedom to ,build designation by demonstrating sustained housing supply growth meeting an affordability-adjusted target established by the ,secretary of ,housing and ,urban ,development under this subsection4 7#b7 ,affordability-adjusted target ,the ,secretary of ,housing and ,urban ,development shall1 through notice-and-comment rulemaking1 establish a formula for determining the supply growth target applicable to each locality4 ,the formula shall-- 7,a7 set a higher supply growth target for localities in housing markets in which housing costs are high and rising1 and a lower target1 which may be zero1 for localities in housing markets in which housing costs are affordable and stable2 7,b7 account for both the level of housing costs1 such as the ratio of median home price to median household income1 and the trajectory of housing costs1 such as the rate of home price or rent appreciation2 7,c7 measure housing costs at the level of the metropolitan statistical area or the housing market area defined by the ,secretary1 rather than at the level of the individual locality1 to prevent a locality from avoiding a supply growth target applicable to its region2 7,d7 measure supply growth relative to the affordability-adjusted target rather than by raw production volume2 and 7,e7 permit the supply growth target to be met by an individual locality or through documented participation by the locality in a regional housing production compact with one or more other localities4 7#c7 ,data sources ,in establishing the formula under paragraph 7#b71 the ,secretary of ,housing and ,urban ,development shall use existing1 publicly available data1 which may include the ,house ,price ,index published by the ,federal ,housing ,finance ,agency1 the ,american ,community ,survey of the ,bureau of the ,census1 ,fair ,market ,rents published by the ,department of ,housing and ,urban ,development1 and housing unit counts from the decennial census or the ,american ,community ,survey4 7d7 ,periodic review ,the ,secretary of ,housing and ,urban ,development shall review1 and if appropriate update through notice-and-comment rulemaking1 the specific reforms identified under subsection 7b77#b7 and the formula established under subsection 7c77#b7 not less than once every #e years after the date on which the regulations are promulgated4 7e7 ,revocation 7#a7 ,in general ,the ,secretary of ,housing and ,urban ,development may revoke the ,freedom to ,build designation of a locality upon a finding that the locality has-- 7,a7 materially reversed #a or more qualifying reforms adopted under subsection 7b72 or 7,b7 ceased to meet the supply growth target under subsection 7c71 as applicable4 7#b7 ,notice ,before revoking a designation under paragraph 7#a71 the ,secretary of ,housing and ,urban ,development shall provide the locality with written notice and a period of not less than #ahj days to cure the deficiency4 #c4 ,prioritization of ,freedom to ,build designated localities in competitive grants 7a7 ,findings ,congress finds the following3 7#a7 ,local regulatory barriers1 including restrictive zoning1 burdensome permitting processes1 and cost-increasing mandates1 are a significant contributor to housing-supply constraints and rising housing costs across the ,united ,states4 7#b7 ,federal investments in infrastructure1 transportation1 and community development generate greater public benefit when the surrounding regulatory environment permits the construction of housing in response to improved accessibility and economic opportunity4 7#c7 ,communities that remove regulatory barriers to homebuilding serve national economic1 workforce development1 and housing affordability objectives4 7#d7 ,federal tax incentives for housing production and investment1 including the low-income housing tax credit under section #db of the ,internal ,revenue ,code of #aihf1 qualified opportunity zone incentives under section #adjj,z-#b of such ,code1 and the new markets tax credit under section #de;,d of such ,code1 generate greater returns for taxpayers and produce more housing when deployed in communities with pro-building regulatory environments4 7#e7 ,federal housing1 transportation1 and community development funds achieve greater impact when directed to communities where the regulatory environment enables those investments to produce their intended results4 ,directing such funds to communities that simultaneously maintain regulatory barriers to the construction those programs are designed to support diminishes the effectiveness and return on the ,federal investment4 7#f7 ,an adequate and growing supply of housing allows demand growth from rising incomes and declining interest rates to result in expanded homeownership rather than higher home prices1 property taxes1 and homeowner insurance premiums1 thereby protecting the affordability and value of homeownership for current and prospective homeowners4 7#g7 ,the ,freedom to ,build designation established under section #b provides a reliable and verifiable indicator that a community has committed to a regulatory environment supportive of housing supply growth4 7b7 ,priority for freedom ,to build communities ,the ,secretary of ,housing and ,urban ,development shall prioritize applicants that are located in or primarily serve communities with a current ,freedom to ,build designation under section #b for any competitive grant administered by the ,department of ,housing and ,urban ,development that relates to housing development1 community development1 or any other competitive grant relating to the construction1 modification1 rehabilitation1 or preservation of housing4 7c7 ,sense of congress ,it is the sense of ,congress that ,federal agencies administering competitive grant programs for infrastructure1 transportation1 and community development1 including the ,department of ,transportation1 the ,environmental ,protection ,agency1 and the ,department of ,agriculture1 should consider whether an applicant is located in a locality with a current ,freedom to ,build designation under section #b as a positive factor in evaluating applications for such grants where housing supply or community development is relevant to the objectives of the program4