S. 2051, the Choice Neighborhoods Initiative Act of 2025, authorizes the Department of Housing and Urban Development to award competitive grants to local governments, public housing agencies, and nonprofits to revitalize extremely poor neighborhoods by rebuilding severely distressed housing and funding supportive services, education, transportation, and job programs. Grant-funded transformation plans must include housing rehabilitation or replacement, resident relocation assistance, economic self-sufficiency programs, and one-for-one replacement of demolished units, with non-housing activities capped at 25% of grant funds. The bill requires extensive resident participation in planning, including public meetings before grant applications and before any significant plan changes, and guarantees displaced residents 90 days' notice, comparable replacement housing options, and the right to return to new units. Replacement housing must maintain affordability for at least 30 years, with at least one-third of units reconstructed on-site or nearby, and applicants are prioritized based on inclusive planning, fair housing compliance, and long-term community benefits. Grantees must report annually to Congress on spending and outcomes, with all grant information made publicly available.
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