The RESIDE Act: Converting Empty Malls and Offices into Attainable Housing Between 2027 and 2031

The Revitalizing Empty Structures Into Desirable Environments Act, or the RESIDE Act, is a pilot program designed to tackle two major problems at once: the housing shortage and urban blight. This bill sets up a competitive grant program run by the Department of Housing and Urban Development (HUD) that aims to turn old, empty commercial spaces—think defunct malls, abandoned factories, or vacant hotels—into actual homes.

The Pilot Program: Converting Blight into Beds

Starting in Fiscal Year 2027 and running through 2031, the RESIDE Act allows HUD to award grants ranging from $1 million to $10 million to local housing jurisdictions. This money is specifically earmarked for the costs associated with converting these "vacant and abandoned buildings" into housing, covering everything from buying the property to site cleanup and construction. Crucially, this isn't just about building new units; it’s about creating attainable housing. The bill defines this as housing where the majority of units must be affordable to people making 80% or less of their area’s median income (AMI).

This is a smart way to address the housing crunch without requiring new land development. For example, a city with a struggling downtown office building could apply for a grant to turn that concrete shell into apartments, immediately increasing the housing supply for working families or service industry workers who need to live close to their jobs. The bill also allows this funding to be used to support Community Land Trusts, which are non-profits that hold land permanently to keep housing affordable over the long term.

The Catch: How the Program Gets Funded

Before you start looking up available grants, there’s a big caveat: funding for the RESIDE Act is not guaranteed. The program is designed to use up to $100 million annually, but only if the main affordable housing program, the HOME Investment Partnerships Program, exceeds $1.35 billion in funding for that year. If HOME funding falls below that threshold, the RESIDE Act gets zero dollars. This reliance on excess funding means the program’s existence is tied to annual Congressional appropriations, creating uncertainty for local governments trying to plan multi-year conversion projects.

Regulatory Fast Track and Local Incentives

HUD will prioritize applications from entities that are trying to pull housing together in economically distressed areas or designated Opportunity Zones. They also give a major nod to local governments that have already done the hard work of cutting red tape. If a city or county has passed local rules that make it easier to convert commercial buildings to residential use—without sacrificing safety—they move to the front of the line for these grants. This incentivizes local leaders to fix their often-complex zoning codes, which are frequently the biggest hurdle in adaptive reuse projects.

However, the bill also grants the Secretary of HUD the power to waive or change existing federal regulations related to these grants if they can show "good cause." While this flexibility is intended to speed up complex conversions, it’s a provision worth watching. Waivers could potentially affect things like environmental reviews or certain tenant protections, raising questions about whether speed will occasionally trump necessary oversight.

What It Means for Your Neighborhood

If the RESIDE Act gets funded, the most immediate impact will be felt in communities with high commercial vacancy rates and high housing costs. Instead of driving past an empty Sears or a deserted industrial park, you might see construction activity transforming those spaces into apartments and condos. The goal is to reduce blight and inject life back into areas that have seen commercial activity dry up. Once the pilot wraps up in 2031, HUD is required to report back to Congress on how successful the program was at increasing affordable housing, boosting homeownership, and—crucially—how it impacted local tax bases. This final report will determine if this pilot program becomes a permanent fixture in the federal housing toolkit.