Innovation Fund Act
Summary
The Innovation Fund Act aims to address the housing supply shortage by establishing a grant program. This program would provide funds to eligible local entities that have demonstrated improvements in increasing their housing supply. The grants can be used for various activities related to housing and community development, with a focus on attainable housing.
Expected Effects
The Act is likely to increase the supply of attainable housing in areas that receive grants. This could lead to lower housing costs for some individuals and families. The Act also incentivizes local governments to streamline regulations and promote denser, more affordable housing development.
Potential Benefits
- Increased housing supply, particularly attainable housing.
- Potential for reduced housing costs for eligible households.
- Incentivizes local governments to adopt policies that promote housing development.
- Supports community development activities.
- Provides funding for clean water and drinking water programs through matching funds.
Potential Disadvantages
- The program's success depends on the effectiveness of the Secretary's methodology for determining housing supply growth.
- The limited funding may not be sufficient to address the nationwide housing shortage.
- The program could disproportionately benefit certain areas over others.
- There is no guarantee that the increased housing supply will be affordable to all income levels.
- The Act does not address underlying issues such as wage stagnation or rising construction costs.
Constitutional Alignment
The Innovation Fund Act appears to align with the Constitution's general welfare clause (Preamble). It promotes the general welfare by attempting to address the housing shortage and improve housing affordability. The Act does not appear to infringe upon any specific constitutional rights or limitations. The Tenth Amendment reserves powers not delegated to the federal government to the states, but this Act provides grants to local entities and does not mandate any specific local policy, thus respecting state and local autonomy.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).