Modular construction pilot program

(a) Definitions In this section: (1) Eligible entity The term eligible entity means a public housing agency, a tribally designated housing entity (as defined in section 4 of the Native American Housing Assistance and Self Determination Act of 1996 (25 U.S.C. 4103)), a nonprofit entity, a company, a religious entity, or a unit of local or Tribal government. (2) Modular construction The term modular construction means the method of residential construction by which building modules are constructed off of the future site of a building, then brought together on the building site to form a larger residential building, in an effort to reduce construction costs. (3) Secretary The term Secretary means the Secretary of Housing and Urban Development. (b) Establishment of program (1) In general The Secretary shall establish a pilot program to provide grants to eligible entities to promote the construction of affordable housing using modular construction. (2) Affordability requirement To be eligible to receive a grant under paragraph (1), an eligible entity shall be required to guarantee affordability for a period of more than 20 years. (3) Priority In awarding grants under paragraph (1), the Secretary shall give priority to an eligible entity that fulfills not fewer than two of the following requirements: (A) The eligible entity— (i) will construct the housing in groups of more than 50 units; or (ii) provides confirmation from the jurisdiction with land use control over the site proposed by the eligible entity that— (I) construction will be completed within 18 months; and (II) the housing will be constructed in groups of more than 30 units. (B) The eligible entity partners with a public housing agency or unit of local government that will issue rental assistance to residents of the affordable housing through vouchers or grants. (C) The eligible entity will provide supportive services (as described in paragraph (21)(D)(iii)(II) of section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), as added by section 3 of this Act) to residents at no charge, or has secured the provision of publicly or privately administered supportive services (as so defined) to residents at no charge. (c) Matching requirement The Federal share of a project funded under this section shall be not more than 75 percent of the cost of the project. (d) Authorization of appropriations There is authorized to be appropriated to the Secretary $2,000,000 for each of fiscal years 2026 through 2031 to carry out this section.