1. Short title This Act may be cited as the Build More Housing Near Transit Act of 2023 . 2. Affordable housing incentives in capital investment grants Section 5309 of title 49, United States Code, is amended— (1) in subsection (a)— (A) by redesignating paragraph (6) as paragraph (7); and (B) by inserting after paragraph (5) the following: (6) Pro-housing policy The term pro-housing policy — (A) means any State or local action that will remove regulatory barriers to the construction or preservation of housing units, including affordable housing units; and (B) shall include any State or local action that— (i) reduces or eliminates parking minimums; (ii) establishes a by-right approval process for multi-family housing under which land use development approval is limited to determining that the development meets objective zoning and design standards that— (I) involve no subjective judgment by a public official; (II) are uniformly verifiable by reference to an external and uniform benchmark or criterion available to both the land use developer and the public official prior to submission; and (III) include only such standards as are published and adopted by ordinance or resolution by a jurisdiction before submission of a development application; (iii) reduces or eliminates minimum lot sizes; (iv) commits substantial publicly-held real property to the development or preservation of housing that includes a substantial number of dwelling units affordable to low-income households; or (v) eliminates or raises residential property height limits or increases the number of dwelling units permitted to be constructed under a by-right approval process; and (vi) carries out other policies as determined by the Secretary, in consultation with the Secretary of Housing and Urban Development.