“A bill to promote shared equity models of homeownership, and for other purposes.”
No CRS summary available for this bill.
This section establishes definitions for terms used in the Act, including (1) community development financial institution, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702); (2) community land trust, meaning a nonprofit entity, state, unit of local government, or instrumentality that acquires and holds land to provide permanently affordable housing to low- and moderate-income persons for at least 99 years (or the maximum period permitted by state law if less), using ground leases or similar mechanisms with preemptive purchase options; (3) eligible entity, meaning a unit of local government, state or local instrumentality, or nonprofit (including a community land trust) that manages a shared equity homeownership model program; (4) eligible grantee, meaning a state agency, state-chartered housing authority, or Treasury-certified community development financial institution; (5) qualified homebuyer, meaning a homebuyer with household income not exceeding 120% of area median income; (6) resale formula, meaning a method under 24 C.F.R. §92.254(a)(5)(i)(A) (as in effect on March 28, 2025) for determining fair return and resale price; and (7) shared equity homeownership model, meaning resale-restricted, owner-occupied housing affordable to low- and moderate-income households for at least 99 years (or the maximum permitted by state law if less), with resale value limited by formula in a ground lease, deed restriction, or similar mechanism.
This section establishes the Lasting Home Affordability Fund, under which the Secretary of the Treasury must create a grant program within 90 days of enactment to provide grants to eligible grantees for low-interest construction loans (not more than 3% interest rate and 1% origination fee) to eligible entities via revolving funds awarded on a rolling basis. Eligible entities, which may not be the same as the grantee, must use the loans for costs associated with constructing or rehabilitating housing sold as primary residences to qualified homebuyers, limited equity cooperative members, or community land trust residents, with sales and resales restricted to qualified homebuyers at below-market values via resale formulas in ground leases, deed restrictions, or similar mechanisms; grantees must prioritize loans for properties in high cost-burden areas, displacement-risk zones, redlined areas, or those with affordability terms exceeding 99 years and may not require more than 10% liquid assets from borrowers. The Secretary must seek geographic diversity in grants, including persistent poverty, underserved, and rural areas; issue any needed rules; require annual grantee reports on loan details (e.g., numbers, rates, units projected, affordability mechanisms, zip codes, area median incomes); and submit annual aggregate reports to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. The section authorizes $100 million for FY2027, to remain available until expended.
This section establishes a five-year Lasting Affordability Homeownership Grant pilot program under the Secretary of Housing and Urban Development (HUD) to provide grants to eligible entities for purchasing vacant land, existing properties, or predeveloped land to develop, renovate, or sell homes to eligible homebuyers or limited equity cooperative members. Eligible entities must prioritize longest-term affordability; complete development or readiness for sale within three years (extendable for extenuating circumstances); and sell homes only to households with incomes at or below 80% of area median income (AMI), or 120% of AMI in rural areas, using ground leases, deed restrictions, covenants, or similar mechanisms for permanent affordability and an entity-determined resale formula. Eligible entities must submit biennial reports to HUD for six years beginning two years after receiving a grant, detailing metrics such as units developed, households served, purchase prices, and delinquency rates; and HUD must submit annual aggregate reports to the Senate Banking, Housing, and Urban Affairs Committee and House Financial Services Committee. The section authorizes $100 million annually for FY2027 through FY2031, with up to 10% for technical assistance to grantees.
This section establishes shared equity housing research and awareness programs within the Department of Housing and Urban Development (HUD). Specifically, it directs the Secretary of HUD, through the Office of Policy Development and Research, to (1) conduct and support research on best practices for community land trusts and other shared equity homeownership models (i.e., models using ground leases, deed restrictions, or similar mechanisms to preserve long-term affordability) and provide technical assistance and capacity-building funding to states, localities, tribes, and nonprofit entities, with such sums as necessary authorized; (2) conduct a public awareness campaign on such models within one year of enactment—including a website, information for housing counselors and lenders, and collaboration with governments and nonprofits—with $3 million authorized for each of FY2027 through FY2029; and (3) carry out an education and outreach campaign on such models, in coordination with the Federal Housing Finance Agency (FHFA), with such sums as necessary authorized. It further requires the Secretary to submit annual reports to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services describing these activities, including research conducted, entities assisted, and FHFA coordination.
This section amends the federal surplus real property transfer program (40 U.S.C. 550) to (1) define "shared equity homeownership model" by reference to section 2 of the Permanent Housing Affordability Act; (2) designate the Secretary of Housing and Urban Development as the enforcement official for property transferred for low-income housing assistance under subsection (f) and for transfers under new subsection (i) to a community land trust or shared equity homeownership model; (3) authorize the Administrator of General Services to convey suitable surplus real property, as determined by the Secretary of Housing and Urban Development, to such entities at a value discounted by 75% of market value (or more if justified), with perpetual-use deed restrictions and potential reversion to the government; and (4) require the Secretary of Housing and Urban Development to submit annual reports to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services, within 90 days after the end of each fiscal year, detailing the number of surplus properties conveyed for affordable housing (including to community land trusts or shared equity homeownership models) and the average discounted value of such properties. (As background, the program enables discounted or no-cost transfers of surplus federal real property to public and nonprofit entities for purposes such as education, public health, parks, and low-income housing, with agency secretaries enforcing compliance.)