The Strengthening Housing Supply Act of 2025 expands the Community Development Block Grant Program to explicitly allow affordable housing construction as a qualifying use of federal funds. Previously, the program supported affordable housing rehabilitation but not new construction, so this bill removes that limitation. The change affects states and local governments that receive these federal grants, enabling them to use the money to build new affordable housing units for low and moderate-income households. The bill applies only to grant funding appropriated after it becomes law, meaning future allocations will have this new flexibility. This is a straightforward technical change designed to increase the supply of affordable housing by removing a barrier that previously restricted how these existing federal funds could be used.
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