Permanent Housing Affordability Act
Sponsored By: Representative Schrier
Introduced
Summary
Expands shared-equity homeownership through community land trusts and related models. This bill would create new grant and lending programs, set long-term resale rules to keep homes affordable, and let agencies convey surplus federal land to support permanently affordable homeownership.
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- Families and homebuyers: Would expand access to permanently affordable owner-occupied homes. Resale rules require affordability terms of at least 99 years and limit eligibility to households at or below 120% of area median income, with the pilot prioritizing households at 80% AMI (or 120% in rural areas).
- Community land trusts, nonprofits, and local governments: Would get access to revolving funds that provide low-interest construction loans capped at 3% and would limit liquidity demands on borrowers to 10%.
- Federal property managers and communities: Would allow surplus federal real property to be transferred to shared-equity entities at a 75% discount and require perpetual use restrictions with reversion if the property stops serving shared-equity housing.
*Would increase federal spending by at least $609 million through FY2027–FY2031 and authorize additional unspecified amounts for research and outreach, potentially increasing deficits if not offset.*
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Grants to build permanently affordable homes
If enacted, HUD would run a Lasting Affordability Homeownership Grant Pilot to buy vacant or predeveloped land and develop shared-equity homes. The pilot would be authorized $100,000,000 per year for fiscal years 2027 through 2031, and up to 10% of each year’s grant funds could be used for technical assistance. HUD would prioritize sales to households at or below 80% of AMI (or at or below 120% of AMI in rural areas). Properties bought as vacant land would generally need to be built and marketed for sale within 3 years unless HUD grants an extension for listed extenuating circumstances.
Low-cost construction loans for affordable homes
If enacted, the Treasury would set up grants to create revolving loan funds for low-interest construction and rehab loans. The program would be established not later than 90 days after enactment and is authorized $100,000,000 for fiscal year 2027. Loans made from fund proceeds would have interest rates no more than 3% and origination fees no more than 1%. Grantees could not require borrowers to hold more than 10% of the loan amount in liquid assets. Properties built with these loans would only be sold to qualified homebuyers (household income at or below 120% of AMI) and must use resale restrictions to keep homes below market on resale.
Who can buy and how resale works
If enacted, the bill would define a "qualified homebuyer" as a household with income at or below 120% of AMI. It would define community land trusts as nonprofit or government sponsors that keep homes affordable for at least 99 years where state law permits. The bill would also require resale formulas to follow HUD's fair-return resale method as set in 24 CFR on March 28, 2025, which keeps resale prices below market and limits homeowner gains while preserving affordability for future buyers.
Deeply discounted federal land for housing
If enacted, HUD would be allowed to convey surplus federal real property to community land trusts and other shared-equity entities for housing. HUD would generally set the conveyance price at about 25% of market value (a 75% discount) and could apply a larger discount after consultation. Conveyances would require deeds or covenants that keep the land in shared-equity housing use in perpetuity and may revert to the Government if the use stops. HUD must report annually on properties conveyed and average discounts.
More research and outreach on shared equity
If enacted, HUD's research office would fund studies, technical help, and model development for community land trusts and other shared-equity models. HUD would run a public awareness campaign about shared-equity housing within one year of enactment. The bill authorizes $3,000,000 per year for fiscal years 2027 through 2029 for the public awareness piece and allows other appropriations as needed for research and capacity building. HUD must report annually on outreach and technical assistance.
Sponsors & CoSponsors
Sponsor
Schrier
WA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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