RESIDE Act

Bill Summary: HR 5591 - RESIDE Act

Overview

The Revitalizing Empty Structures Into Desirable Environments (RESIDE) Act is a legislative proposal designed to combat urban blight and address housing shortages by incentivizing the conversion of vacant and abandoned commercial and industrial buildings into "attainable housing."

The bill establishes a competitive grant program managed by the Secretary of Housing and Urban Development (HUD) to provide financial assistance to local governments and eligible entities for the repurposing of derelict structures.

Key Provisions

1. The Blighted Building to Housing Conversion Program

The bill creates a pilot program to fund the conversion of specific types of abandoned properties—such as warehouses, factories, malls, strip malls, and hotels—into residential units. To qualify as a "vacant and abandoned building," a property must either:
* Have been deemed unsafe by a code enforcement inspection with no corrective action taken by the owner after 90 days; or
* Be subject to court-ordered receivership or meet state/local definitions of abandoned property.

2. Funding Mechanisms

• Funding Source: The program utilizes excess funds from the HOME Investment Partnerships Program. If the HOME program's annual funding exceeds $1.35 billion, the Secretary may divert up to $100 million of that excess to this pilot program.
• Timeline: The program is slated for fiscal years 2027 through 2031.
• Grant Amounts: Individual grants will generally range from $1 million to $10 million.
• Independence: These grants are provided in addition to, and do not reduce, the standard formula allocations an entity receives through the HOME program.

3. "Attainable Housing" Standards

The bill defines "attainable housing" based on Area Median Income (AMI) thresholds:
* Option A: Serves households earning $\le 100\%$ of AMI, provided the majority of units are affordable to those at $\le 80\%$ AMI.
* Option B: Serves households earning $\le 120\%$ of AMI, provided the majority of units are affordable to those at $\le 60\%$ AMI.

4. Priority and Use of Funds

Priority will be given to entities that:
* Operate in economically distressed communities or Qualified Opportunity Zones.
* Align the project with a "consolidated plan" for housing affordability.
* Have passed local ordinances to reduce regulatory barriers to commercial-to-residential conversion (excluding safety/habitability laws).

Allowable uses of funds include:
* Property acquisition and demolition.
* Health hazard remediation and site preparation.
* Construction, renovation, and rehabilitation.
* The establishment or expansion of community land trusts.

Impact and Oversight

Affected Parties

• Local Governments: "Eligible entities" (participating jurisdictions) can apply for funds to revitalize their communities.
• Low-to-Moderate Income Residents: Increased access to attainable housing.
• Property Owners: Potential for government-led intervention/conversion of derelict commercial assets.

Accountability and Reporting

The Secretary of HUD is granted waiver authority for certain regulations to expedite projects, though fair housing, nondiscrimination, labor standards, and environmental requirements cannot be waived.

After the pilot program ends, the Secretary must submit a report to Congress evaluating the program's success in:
* Improving local tax bases.
* Increasing housing for veterans, the elderly, and disabled individuals.
* Increasing homeownership rates and removing blight.

Procedural Status

• Introduced: September 26, 2025
• Current Status: Referred to the House Committee on Financial Services.