Freedom to Build Act

The "Freedom to Build Act" directs the Secretary of Housing and Urban Development to establish a new "Freedom to Build" designation for eligible localities. This voluntary designation, effective for five years and renewable, aims to recognize communities that actively work to alleviate housing supply constraints, with a public list of designated localities maintained. Localities can qualify by adopting a minimum number of reforms across three categories: promoting construction innovation, streamlining the development approval process, and protecting property rights by eliminating excessive mandates. Examples include aligning local codes with national standards, establishing binding timelines for permit decisions, and prohibiting rent control or growth moratoria. Alternatively, qualification is possible by demonstrating sustained housing supply growth that meets an affordability-adjusted target set by the Secretary. This target will be higher for areas with rising housing costs and lower for affordable markets, measured at the metropolitan or regional level. A key incentive for designated localities is prioritized access to competitive federal grants from the Department of Housing and Urban Development for housing and community development. Congress also encourages other federal agencies to consider this designation as a positive factor for relevant grant applications.