Summary#
This bill, the Permanent Housing Affordability Act, creates federal programs to support shared-equity homeownership models like community land trusts. It defines key terms (for example, "community land trust" and "shared equity homeownership model") and sets rules for long-term affordability. The Treasury must set up a Lasting Home Affordability Fund to give grants to eligible grantees, who will make low-interest construction loans to eligible entities. The Department of Housing and Urban Development (HUD) must run a pilot grant program that helps eligible entities buy land or existing property to develop homes that stay affordable. The bill also directs HUD to fund research, public awareness, and outreach about shared-equity models. Finally, it changes federal surplus property rules to allow conveyance of surplus real property to community land trusts or other shared-equity models, and allows a large discount (generally 75%) when fixing the property value for conveyance.
What it means for you#
- Eligible grantees (state agencies, state-chartered housing authorities, or certified community development financial institutions) can apply for grants from the Treasury program. Grantees will make revolving, low-interest construction loans to eligible entities (local governments, nonprofit organizations, community land trusts).
- Loans to eligible entities must have interest rates no more than 3% and origination fees no more than 1%. Grantees cannot require more than 10% of the loan amount in liquid assets from borrowers.
- Properties developed or rehabilitated with these loans must be sold only to "qualified homebuyers" (household income at or below 120% of area median income) and must use a resale formula or other legally enforceable mechanism to keep homes affordable long term (generally at least 99 years, unless state law requires a shorter period).
- HUD’s pilot grants can be used to buy vacant land or existing properties to build or sell permanently affordable homes. Homes sold under the pilot must serve households at or below 80% of area median income (or up to 120% in rural areas) and include ground leases or deed restrictions to preserve affordability.
- HUD must run research, awareness, and outreach programs about shared-equity models and provide technical assistance to entities creating or running these programs. HUD must launch a public awareness campaign within 1 year of enactment.
- The federal government may convey surplus real property to community land trusts or other shared-equity models with deed terms that require perpetual use for those purposes, and HUD may apply a discount (generally 75%) when setting the conveyance price.
- Grantees and HUD must submit regular reports to the relevant Congressional committees with details about loans, projects, locations, incomes served, resale mechanisms, and other program data.
Expenses#
- Section 3 (Treasury Lasting Home Affordability Fund): authorizes $100,000,000 for fiscal year 2027, to remain available until expended.
- Section 4 (HUD Lasting Affordability Homeownership Grant Pilot): authorizes $100,000,000 for each of fiscal years 2027 through 2031. Up to 10% of those amounts may be used for technical assistance.
- Section 5 (Public Awareness): authorizes $3,000,000 for each of fiscal years 2027 through 2029 for the public awareness campaign.
- Section 5 also authorizes HUD to provide research funding and outreach funding but states those amounts as "such sums as may be necessary."
- No other specific appropriation amounts are stated in the bill text.
Proponents' View#
The bill promotes shared-equity homeownership by funding low-interest construction loans, a HUD pilot to buy land and properties for affordable homes, research and public awareness on community land trusts and similar models, and by making federal surplus property available to these models at a discounted value. It aims to preserve long-term or permanent affordability (often defined as at least 99 years) and to serve households with incomes at or below specified area median income levels.
Opponents' View#
No publicly available information.