PolicyBrief
H.R. 1042
119th CongressFeb 6th 2025
Project Turnkey Act
IN COMMITTEE

The "Project Turnkey Act" establishes a program to allocate funds to eligible entities for converting vacant hotels and motels into housing and enhancing shelter capacity for individuals and families experiencing or at risk of homelessness, with an authorization of $1,000,000,000 annually.

Suzanne Bonamici
D

Suzanne Bonamici

Representative

OR-1

LEGISLATION

Project Turnkey Act: $1B Annually to Convert Empty Hotels into Housing, Starting Now

The "Project Turnkey Act" greenlights a major effort to tackle homelessness by turning vacant hotels and motels into shelters and affordable housing. This isn't just a temporary fix – it's a nationwide program with serious cash behind it, authorizing $1 billion every year until 2035.

From Vacant to Vibrant: Hotels Get a New Lease on Life

The core of the bill is pretty straightforward: It provides funds to states, cities, counties, and various organizations to buy and renovate old hotels and motels. These renovated spaces will then be used to house people experiencing homelessness, those at risk of becoming homeless, and individuals escaping domestic violence. The bill specifically mentions using the funds for rental assistance (covering rent, security deposits, and utilities – Sec. 2), supportive services like housing counseling and homeless prevention (Sec. 2), and even the acquisition and repair of properties (Sec. 2).

Real-World Rollout: How it Actually Works

Imagine a local motel that's been sitting empty for years. Under this program, a city could use these funds to buy it, fix it up, and partner with a non-profit to run it as a shelter or affordable housing units. Or, picture a family on the brink of eviction. This bill could provide the cash to cover their back rent and keep them in their home (Sec. 2). The law allows for a range of uses, all centered on getting people into stable housing. It also empowers the Secretary to greenlight “any other purpose” they think is appropriate (Sec. 2), which gives the program a lot of flexibility.

The Fine Print: Flexibility and Funding

One interesting twist is that the Secretary (the big boss at the Department of Housing and Urban Development) can waive some usual requirements to speed things up (Sec. 2). While they can't ditch rules about fair housing, non-discrimination, labor standards, or the environment, this flexibility could mean getting projects off the ground faster. It's also important to note that this money is in addition to what states and cities are already spending – it's not supposed to replace existing funds (Sec. 2). Up to 15% of the funds can go to administrative costs, and another 5% can be used for capacity building for nonprofits and community housing groups (Sec. 2). The bill defines "hotel/motel" pretty broadly, basically any property that used to be in that business but isn't anymore (Sec. 2).

Potential Roadblocks

While the concept is solid, there are some points to consider. The broad definition of “any other purpose” for funding (Sec. 2), combined with that power to waive certain requirements, could create the potential for funds to be used in ways that don't directly benefit the target population. And, while 15% for admin costs might be necessary, it's crucial to ensure the bulk of the money goes directly to helping people. Also, defining a hotel/motel as something “no longer affecting commerce” (Sec. 2) is pretty vague. It will be important to see how that plays out in practice.

Overall, Project Turnkey represents a substantial investment in addressing homelessness. It's a practical approach, using existing infrastructure to meet a critical need. The success will really depend on how it's implemented on the ground, and how effectively those broad powers granted to the Secretary are used.