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September 04.2025
3 Minutes Read

Unlocking Affordable Housing Funding: How the UNLOCK Act Could Change the Game

Stylized housing funding illustration with buildings and money.

New Legislation Aims to Address the Housing Crisis

In an effort to tackle the ongoing housing affordability crisis, U.S. Representatives Sam Liccardo and Mike Flood recently introduced a progressive piece of legislation known as the UNLOCK Act. This Act targets a significant hurdle many municipalities face when trying to access federal funding for affordable housing projects, namely the restrictions on Community Development Block Grant (CDBG) funds.

Understanding the UNLOCK Act

By loosening the existing restrictions on CDBG funds, the UNLOCK Act aims to empower local governments, allowing them to allocate resources more effectively to meet the pressing needs of their communities. According to Liccardo, who has firsthand experience with the housing challenges in San Jose, the bill is a response to feedback obtained from local governments about the bureaucratic red tape impeding their ability to act quickly. "Easing restrictions on how CDBG funds can be spent will allow cities to better respond to housing demands in real time," Liccardo explained.

Local Impact and Broader Support

With several affordable housing projects already planned in Mountain View, California, city officials have expressed enthusiasm about the potential benefits of the bill. They believe it will greatly facilitate moving projects from concept to construction. Flood echoed these sentiments, indicating that cities in Nebraska could also leverage the new flexibility to meet their housing supply needs more effectively.

The UNLOCK Act has gained robust support from several national housing organizations, including the U.S. Conference of Mayors and the National League of Cities. These endorsements highlight a collective urgency to draw attention to the affordable housing shortage that continues to grip many regions across the United States.

Complementary Initiatives to Tackle Housing Affordability

The UNLOCK Act is not the only initiative aimed at addressing the housing crisis. The Biden administration has also signaled further actions to boost housing affordability. U.S. Treasury Secretary Scott Bessent announced the rollout of additional measures geared toward enhancing housing affordability, encapsulated within a broader strategy to declare a “national housing emergency.” This approach includes speeding up permitting processes and creating incentives for energy-efficient constructions.

The Role of Bipartisan Support in Housing Legislation

The UNLOCK Act is a testament to the growing bipartisan consensus on the need for housing reform. Current discussions also include other bills, such as the Road to Housing Act championed by Senators Tim Scott and Elizabeth Warren, emphasizing a collaborative effort to pivot towards solutions that benefit communities experiencing acute housing shortages.

Conclusion: A Path Forward for Affordable Housing

The introduction of the UNLOCK Act is a welcome development in the pursuit of affordable housing solutions. By re-evaluating the constraints placed on federal funding, local governments can respond more agilely to housing demands in their communities. The growing momentum behind this legislation signifies not just a recognition of the housing crisis but also a determination to transform policy frameworks to create meaningful solutions.

As communities across the U.S. look to the future, the enactment of this legislation and continued federal support could pave the way for a new standard in affordable housing practices. Local leaders, residents, and advocates are hopeful that these changes will open new possibilities for those in need of sustainable and accessible housing options.

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