Empty Lots to Housing Act

Chapter 1 of title 23, United States Code, is amended by adding at the end the following:

If a recipient of assistance under this chapter decides real property acquired at least in part with such assistance is no longer needed for the purpose for which such real property was acquired, the Secretary may authorize the recipient to transfer such real property, with no further obligation to the Government, to—

(1) a local governmental authority or nonprofit organization for the development of transit-oriented dwelling unit; or

(2) to a third-party entity for the development of transit-oriented dwelling units, if the Secretary determines that—

(A) a local government authority or nonprofit organization is unable to receive the real property;

(B) the overall benefit of allowing the transfer of the real property is greater than the interest of the Government in selling the property, after considering fair market value and other factors; and

(C) the third-party entity has demonstrated a satisfactory history of construction or operating an affordable housing development.

The Secretary may only authorize a transfer under this section if the Secretary has determined that the recipient has contractually required the entity to which the recipient proposes to transfer the real property to, for the duration of the 30-year period beginning on the date such real property is transferred to such entity—

(1) reserve not less than 40 percent of any housing units developed on such real property for families whose adjusted income, as such term is defined by the Secretary, in consultation with the Secretary of Housing and Urban Development by rule, is less than or equal to 60 percent of the area median income and offer such units to such families with a rent that does not exceed 30 percent of the adjusted income of such family; and

(2) of the 40 percent of unit reserved under paragraph (1), reserve not less than 20 percent of such units for families whose income is less than or equal to 30 percent of the area median income.

The analysis for chapter 1 of title 23, United States Code, is amended by adding at the end the following: