New bill would convert unused government buildings into affordable housing

New House legislation introduced Tuesday would aim to repurpose underutilized government facilities into affordable housing projects in an effort to boost residential use development. 

The Government Facilities to Affordable Housing Conversion Act — cosponsored by Reps. Adam Schiff and Jimmy Gomez, D-Calif., — would task the Housing and Urban Development Department, General Services Administration and the Office of Management and Budget with identifying vacant or underused federal, state and local government properties that may be suitable for residential conversion.

The three agencies would analyze the federal real property footprint, whether it’s being utilized and should be reduced and which properties could be eligible for conversion in a report to Congress.   

It would also expand on an existing HUD grant program for residential conversions, with $1.75 million in annual funding between fiscal 2025 and 2030, and create another grant program to help state and local governments convert properties into qualified residential rental projects. 

“In a time where so many Americans are continually struggling to find safe, affordable housing, the Government Facilities to Affordable Housing Conversion Act represents a step forward in our efforts to address the housing crisis,” said Schiff, in a statement. “By repurposing government buildings that have outlived their original use, we're not only making efficient use of our resources but also increasing the supply of affordable housing.”

The legislation comes as Senate Homeland Security & Governmental Affairs Committee Chairman Gary Peters, D-Mich., said last July that nearly 8,000 federal properties sat unused, and the Government Accountability Office found last fall that federal agencies are having trouble fully utilizing their office space in the wake of the pandemic.

Schiff and Gomez’s bill would require that any potential residential projects offer 20% or more of the residential units are occupied by a household with an income that does not exceed 50% of the median income for the area and that 40% are occupied by a household with an income that does not exceed 60% of median income — though some units can be inhabited by households with less than 80% median income. 

“Our country has always used ingenuity to guide us through our most daunting challenges, and it’s time to start thinking that way about housing,” said Gomez, in a statement. “I’m proud to join Rep. Schiff to introduce this bill that tackles two crises at once — empty or underutilized buildings and a lack of affordable housing. This will support the economic growth of our cities, strengthen main street small businesses and provide affordable places to live for our communities.”

The bill was referred to the House Committee on Financial Services.