1. Short title This Act may be cited as the Housing Supply and Affordability Act . 2. Local housing policy grant pilot program (a) Definitions In this section: (1) Cost-burdened household The term cost-burdened household means a household that spends not less than 30 percent of the income of the household on housing. (2) Department The term Department means the Department of Housing and Urban Development. (3) Eligible entity The term eligible entity means a State, a political subdivision of a State, a coalition of States or political subdivisions of States, an Indian Tribe, or a Native Hawaiian organization that— (A) demonstrates, with respect to the area under the jurisdiction of the State, political subdivision, coalition, Indian Tribe, or organization— (i) rising housing costs or a reasonable expectation that housing costs will rise in the area; and (ii) a housing supply shortage; (B) if applying for a planning grant— (i) intends to develop, or is in the process of developing, a housing policy plan; and (ii) demonstrates an intent to use a portion of the planning grant to engage with community stakeholders and housing practitioners in developing a housing policy plan; and (C) if applying for an implementation grant— (i) has adopted and plans to implement, or is in the process of implementing, a housing policy plan; and (ii) demonstrates the engagement of community stakeholders and housing practitioners in developing the housing policy plan. (4) Housing policy plan The term housing policy plan means a comprehensive plan of an eligible entity to, with respect to the area under the jurisdiction of the eligible entity— (A) increase the housing supply in the area, while avoiding the displacement of the residents of the area; (B) increase the affordability of housing in the area