Choice in Affordable Housing Act of 2025

This bill aims to increase the number of landlords participating in the Housing Choice Voucher program by creating new incentives and streamlining processes. It amends the United States Housing Act of 1937 to authorize one-time payments to landlords in low-poverty areas, security deposit payments on behalf of tenants, and bonus payments to housing agencies that employ landlord liaisons. It also allows certain units to meet inspection requirements through other housing programs, permits early inspections for new landlords, expands the use of small area fair market rents, and requires the Secretary to explore reforming the Section 8 Management Assessment Program to promote landlord interactions and neighborhood diversity. Finally, it mandates annual reports on the effectiveness of these changes.

Sec. 5, Incentivizing landlord participation: This section creates three new incentives. First, it authorizes one-time payments to landlords who own units in census tracts with a poverty rate under 20% and who have not previously had a housing assistance payment contract for that unit, with the payment capped at 200% of the monthly housing assistance payment. Second, it authorizes security deposit payments on behalf of tenants, with priority for extremely low-income families, and establishes a damage claims process. Third, it authorizes annual bonus payments to public housing agencies that employ or contract with a dedicated landlord liaison to conduct outreach, training, and operate a help mechanism. These incentives are funded through a new Herschel Lashkowitz Housing Partnership Fund, with $100 million authorized per year from 2025 through 2029.

Sec. 6, Housing quality standards: This section allows dwelling units in buildings financed by low-income housing tax credits, assisted under the HOME program, or assisted by the Rural Housing Service to be deemed to meet Housing Choice Voucher inspection requirements if they passed a physical inspection within the preceding 12 months and the public housing agency can obtain the results. It also permits public housing agencies to inspect a unit owned by a new landlord before a tenant is selected, and if the unit passes, the inspection satisfies requirements if a lease is signed within 60 days. Agencies must provide families with a list of such pre-inspected units.

Sec. 7, Small area fair market rent: This section requires the Secretary, within three years, to designate at least three times the number of metropolitan areas where public housing agencies must use small area fair market rents (based on ZIP Code areas) to determine rental assistance amounts. If this change would decrease a family's payment standard, the agency must continue using the higher standard for as long as the family remains in the same unit.

Sec. 8, Section 8 Management Assessment Program: This section directs the Secretary to explore reforming the program to assess public housing agencies in ways that promote positive landlord interactions, including timely rent payments and unit identification, and increase the diversity of areas where units are leased to support access to low-poverty, integrated neighborhoods.

Sec. 9, Annual report on effectiveness: This section requires the Secretary to submit a report annually for five years to specified congressional committees, evaluating the effectiveness of the Act in recruiting and retaining landlords, particularly in high-opportunity areas. The report must include the number of landlords and units in the program, net changes, and counts of disability-accessible units and units in high-opportunity areas.