Proposed Housing Legislation in the 119th Congress: What Land Banks Need to Know

In the past year, the federal government has increased its focus on housing amid the national shortage of quality, affordable homes. The 119th Congress has advanced several bills addressing parcel development and redevelopment. While the key language is targeting affordable housing opportunities, a few have the potential to directly impact land banks. As the national membership organization serving land banks, the National Land Bank Network (NLBN) is tracking these developments to keep members informed of federal activity that may affect their work. 

Overview of Current Bills and Policies 

21st Century ROAD to Housing Act (H.R. 1299) 

One of the largest housing bills in recent history, this bipartisan package—awaiting approval in the Senate—reauthorizes and updates federal housing programs through FY2033. Key provisions include: new US Department of Housing and Urban Development (HUD) competitive grants for local housing supply reforms (e.g. an “Innovation Fund” of $200 million per year), prioritized in distressed/opportunity zone areas, and planning/implementation grants for local revitalization. The bill also includes the RESIDE Act, which authorizes HUD to set aside excess HOME dollars for communities to convert commercial vacant, abandoned, and deteriorated (VAD) structures into housing.  

Notably, land banks are identified by name in the Housing Supply Frameworks section of the legislation as key partners for state and local governments. 

What Land Banks Can Do: Land banks can partner with cities/counties on many of these programs—as eligible local governments or nonprofits—and should monitor grant solicitations (e.g., HUD funding notices).  

Opportunity Zones (OZ) 2.0 

The 2025 tax law permanently reauthorizes the OZ program. Key changes of new OZs include:  

• Permanency (no sunset)  

• A rolling 5-year capital-gain deferral for new OZ investments 

• Creation of “Qualified Rural Opportunity Funds” (granting a 30 percent basis step-up after 5 years instead of 10 percent for urban OZs) 

• A reduced 50 percent substantial-improvement test for rural projects; and tightened tract eligibility

• New OZ designations required: governors must select fresh zones (based on 2020 census data) by mid-2026, effective January 1, 2027.

Because 86 percent of land banks operate in one or more of the current OZs, these changes will directly affect their communities.  

What Land Banks Can Do: Land banks and partners should engage state OZ selection processes (to ensure distressed neighborhoods get designations) and prepare to leverage OZ investors for redevelopment. They should also track related funding (e.g., IRS will award $15M for OZ reporting/transparency).  

Brownfields and Environmental Programs 

The Senate’s pending Brownfields Reauthorization Act would reauthorize the US Environmental Protection Agency’s (EPA) Brownfields Grant program through FY2030 with lower match (down to 10 percent in many cases), streamlined applications, expanded eligible applicants (including 501(c)(6) groups), higher grant caps ($1 million per cleanup grant), and boosted state funding. A companion House bill—the Brownfields Redevelopment Tax Incentive Reauthorization Act (H.R. 815)—would revive a Brownfields Redevelopment Tax Incentive, allowing a full up-front deduction for cleanup costs. Neither bill is law at time of publication, but both would meaningfully expand cleanup funding for some of the most challenged properties in our communities.  

Ohio offers a relevant model: The state government has invested $900 million in the Brownfield Remediation Program. In counties with land banks, the land bank leads grant applications, accelerating cleanup and redevelopment.  

What Land Banks Can Do: Land banks should coordinate with state agencies and educate developers on any new tax incentives.  

Next Steps for Land Banks

As federal resources increasingly target housing supply, land banks are uniquely positioned to address the properties with the largest barriers to redevelopment. Those typically include commercial, industrial, and low-AMI census tracts. The legislation described above could meaningfully support this work.  

Funding for pilot projects will be minimal and competitive, so land banks that are ready and well-positioned to execute will be best-placed to deliver results. 

Specific steps your land bank can take now: 

• Partner with your municipalities or counties on relevant programs as eligible local governments or nonprofits, and monitor HUD and EPA grant solicitations.  

• Engage with states in OZ designation processes to ensure the most distressed communities are included. 

• Coordinate with state agencies and educate developers on any new tax incentives.