Federal Housing Agency Application of Environmental Reviews

(a) Memorandum of understanding (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary of Housing and Urban Development and the Secretary of Agriculture shall enter into a memorandum of understanding to— (1) (A) evaluate the use of categorical exclusions (as defined in section 111 of the National Environmental Policy Act of 1969 (42 U.S.C. 4336e)) for housing projects funded by amounts from the Department of the Housing and Urban Development and the Department of Agriculture; (2) (B) develop a process to designate a lead agency among the Department of Housing and Urban Development and the Department of Agriculture and to streamline the adoption of environmental impact statements and environmental assessments approved by the other agency to construct housing projects funded by amounts from both agencies; (3) (C) maintain compliance with environmental regulations under part 58 of title 24, Code of Federal Regulations, as in effect on January 1, 2025; and (4) (D) evaluate the feasibility of a joint physical inspection process for housing projects funded by amounts from the Department of the Housing and Urban Development and the Department of Agriculture. (b) (2) Advisory working group (1) (A) In general Not later than 180 days after the date of enactment of this Act, the Secretary of Housing and Urban Development and the Secretary of Agriculture shall establish an advisory working group for the purpose of consulting on the implementation of the memorandum of understanding entered into under subsection (a). (2) paragraph (1). (B) Members The advisory working group established under paragraph (1) subparagraph (A) shall consist of rural and non-rural nonrural stakeholders, including— (A) (i) affordable housing nonprofit organizations; (B) (ii) State housing and housing finance agencies; (C) (iii) nonprofit and for-profit home builders and housing developers; (D) (iv) property management companies; (E) (v) owners of multifamily properties, including nonprofit and for-profit owners and operators; (F) (vi) public housing agencies; (G) (vii) residents in housing assisted by the Department of Housing and Urban Development or the Department of Agriculture and representatives of those residents; and (H) (viii) housing contract administrators. (c) (3) Report Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development and the Secretary of Agriculture shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that includes recommendations for legislative, regulatory, or administrative actions— (1) (A) to improve the efficiency and effectiveness of housing projects funded by amounts from the Department of the Housing and Urban Development and the Department of Agriculture; and (2) (B) that do not materially, with respect to residents of housing projects described in paragraph (1)— (A) subparagraph (A)— (i) reduce the safety of those residents; (B) (ii) shift long-term costs onto those residents; or (C) (iii) undermine the environmental standards of those residents.residents. (b) Study and Review (1) Exemption In providing assistance under section 501, 502, 504, 515, 533, or 538 of the Housing Act of 1949 (42 U.S.C. 1471, 1472, 1474, 1485, 1490m, or 1490p–2) for the construction or modification of residential housing located on an infill site, the Secretary of Agriculture shall not be required to carry out any study or report on the environmental effects of such assistance. (2) Report Not later than the date that is 5 years after the date of enactment of this section, the Secretary of Agriculture shall submit, to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, a report that— (A) determines whether the implementation of this section— (i) reduced the amount of time it takes to review an application for assistance under the sections of the Housing Act of 1949 identified in paragraph (1); and (ii) reduced the administrative cost of providing such assistance; (B) describes how the implementation of this section affects the affordable housing sector in rural America; and (C) includes any legislative recommendations from the Secretary of Agriculture. (2) Definitions In this section: (A) Greenfield The term greenfield means a site that has not been developed, including a woodland, farmland, and an open field. (B) Infill site The term infill site — (i) means a site that is served by existing infrastructure, including water lines, sewer lines, and roads; and (ii) does not include— (I) a site that is served by existing infrastructure that only consists of a road; (II) a site within a census tract designated as very high or relatively high risk for wildfire, coastal flooding, and riverine flooding under the National Risk Index of the Federal Emergency Management Agency pursuant to section 206 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5136); and (III) a greenfield.