The Bipartisan “Housing Supply and Affordability Act” Would Create a New Competitive Grant Program for States & Localities to Increase Local Housing Supply

WOODBRIDGE, Va. — U.S. Representative Abigail Spanberger backed bipartisan, bicameral legislation to create a new federal grant program to help increase the housing supply and make buying or renting a home more affordable for Virginians.

Housing costs in Virginia have continued to rise. According to the Virginia REALTORS association, Virginia’s statewide median home sale price was $415,000 in August 2024 — an increase of $60,000 or 16.9 percent from August 2021. According to the National Low Income Housing Coalition, the average Fair Market Rent (FMR) for a two-bedroom apartment in Virginia is $1,573. To afford this rent and utilities without spending more than the recommended 30 percent of their income on housing expenses, a household must earn $5,244 per month or $62,925 annually — amounting to a full-time hourly wage of $30.25. Households spending more than 30 percent of their income on housing expenses are considered housing cost burdened. In 2019, approximately 905,000 households in Virginia — both owners and renters— were housing cost burdened, according to Virginia’s Joint Legislative Audit & Review Commission.

The Spanberger-backed Housing Supply and Affordability Act would create a new Local Housing Policy Grant (LHPG) program administered by the U.S. Department of Housing and Urban Development (HUD). This program would provide technical assistance to help states and localities increase housing supply, improve housing affordability, and reduce barriers to new housing development while avoiding the displacement of current residents.

“Virginians’ paychecks are being stretched thin as housing prices and rent are on the rise. Across our communities, I hear from Virginians who are struggling to find affordable rental housing or realize their dream of owning their own home,” said Spanberger. “This bipartisan legislation would provide added support at the ground level — helping individual communities create and implement plans to increase the supply of affordable housing available, remove barriers to homeownership, and meet the unique needs of their neighbors.”

Specifically, the Housing Supply and Affordability Act would:

• Create a $300-million competitive grant program each year over five years for state and local governments that demonstrate rising housing costs or projected rising housing costs to develop a housing plan to increase housing supply.

• Award at least 10 percent of grant funds to rural areas.

• Prioritize grants by housing plans that would increase affordable housing access for individuals of every race and income level, reduce barriers to affordable housing development, and avoid the displacement of residents.

• Require the HUD Secretary to issue guidance with recommended policies, strategies, and reforms to encourage repurposing land for housing development, allow for a greater variety of housing types, revise land use policies to allow for the development of more housing, streamline the approval process for housing development, provide financial incentives to support affordable housing development, and support engagement of community members.

• Require routine reporting from applicants regarding the use of these grant funds.

The legislation is led in the U.S. House by U.S. Representatives Lisa Blunt Rochester (D-DE-AL), Brian Fitzpatrick (R-PA-01), and Joyce Beatty (D-OH-03). Companion legislation is led in the U.S. Senate by U.S. Senators Tim Kaine (D-VA) and Amy Klobuchar (D-MN).

Click here for the full bill text.

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