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, and bonus payments for public housing agencies that employ landlord liaisons. It also establishes a fund for these activities, authorizes funding for the Tribal HUD-VASH program, allows certain units to meet inspection requirements through other housing programs, expands the use of small area fair market rents, and requires reports on the bill's effectiveness.

Sec. 5, Incentivizing landlord participation: This section adds three new authorities to the Housing Choice Voucher program. First, it allows the Secretary to provide funds to public housing agencies for one-time incentive payments to owners of eligible units in census tracts with a poverty rate under 20% that have not previously been under a voucher contract. The payment cannot exceed 200% of the monthly housing assistance payment, and an owner can only receive one such payment. Second, it requires the Secretary to provide assistance to public housing agencies to pay security deposits on behalf of tenants, with priority for extremely low-income families. The section outlines a damage claims process and requires unused deposit amounts to be returned to the agency. Third, it requires the Secretary to award an annual bonus payment to each public housing agency that employs or contracts for a dedicated landlord liaison to conduct outreach, training, and operate a support mechanism. The bonus amount is set by the Secretary, cannot exceed 150% of the average local cost of such a liaison, and must be sufficient to incentivize agencies.

Sec. 5(d), Housing Partnership Fund: This section establishes the Herschel Lashkowitz Housing Partnership Fund within the Department of Housing and Urban Development. The Secretary must use the fund for the incentive payments, security deposit payments, and landlord liaison bonus payments authorized in the previous subsections, as well as other uses approved by the Secretary to recruit and retain landlords in low-poverty areas. Public housing agencies receiving fund assistance must submit annual reports. The bill authorizes $100,000,000 to be appropriated for the fund for each of fiscal years 2025 through 2029.

Sec. 6, Tribal HUD-VASH authorization: This section authorizes $7,000,000 to be appropriated for each of fiscal years 2025 through 2029 for the Tribal Housing and Urban Development-Veterans Affairs Supportive Housing program.

Sec. 7, Housing quality standards: This section amends inspection requirements. It deems a dwelling unit to meet inspection requirements if it is in a building financed with low-income housing tax credits, assisted under the HOME program, or assisted by the Rural Housing Service, and passed an inspection under that program within the preceding 12 months, provided the public housing agency can obtain the results. It also allows a public housing agency, upon request, to inspect a unit owned by a new landlord before a tenant is selected. If the unit passes and a lease is signed within 60 days, that inspection satisfies the requirement. Agencies must provide families with a list of such pre-inspected units.

Sec. 8, Small area fair market rent: This section requires the Secretary, within 3 years, to designate a number of metropolitan areas where public housing agencies must use small area fair market rents (by ZIP code) that is at least three times the number designated in a 2016 rule. It includes a hold harmless provision so that if applying the new rent would decrease a family's assistance, the agency continues using the higher payment standard as long as the family stays in the same unit.

Sec. 9, Section 8 Management Assessment Program: This section directs the Secretary to explore ways to reform the program to assess public housing agencies in a manner that promotes positive interactions with landlords and increases the diversity of areas where units are leased to support access to low-poverty, integrated neighborhoods. It clarifies that the Secretary may also reform the program in other areas or manners.

Sec. 10, Annual report: This section requires the Secretary, within one year and annually for five total years, to submit a public report 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 the number of disability-accessible units and units in high-opportunity areas.