Innovation Fund Act
Summary
The Innovation Fund Act aims to establish a grant program within the Department of Housing and Urban Development (HUD) to increase the local housing supply. Grants would be awarded competitively to eligible entities, including metropolitan cities, urban counties, and Indian tribes, that have demonstrated improvement in housing supply growth. The Act authorizes appropriations of $200 million annually from 2027 through 2031, adjusted for inflation.
Expected Effects
The Act is likely to stimulate housing construction and development by providing financial incentives to local governments. This could lead to increased availability of attainable housing, particularly for households with lower incomes. The Act also encourages innovative approaches to zoning and land use policies to reduce barriers to housing development.
Potential Benefits
- Increased housing supply, particularly attainable housing for low- and moderate-income households.
- Stimulation of local economies through construction and development projects.
- Encouragement of innovative zoning and land use policies.
- Improved community development planning through the consolidated plan requirements.
- Potential for cleaner water and drinking water programs through matching funds.
Potential Disadvantages
- Potential for inefficient allocation of funds if the grant program is not managed effectively.
- Possible displacement of existing residents due to new development.
- Risk of unintended consequences from changes to zoning and land use policies.
- Administrative burden on HUD to establish and manage the grant program.
- The Act does not mandate participation, so communities may not adopt innovative policies.
Constitutional Alignment
The Innovation Fund Act appears to align with the Constitution's general welfare clause (Preamble). It promotes housing, which can be argued as contributing to the well-being of citizens. The Act does not appear to infringe on any specific constitutional rights. The Tenth Amendment reserves powers not delegated to the federal government to the states, and this Act respects local zoning control, thus avoiding direct conflict.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).