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HR8127119th CongressWALLET

Permanent Housing Affordability Act

Sponsored By: Representative Schrier, Kim [D-WA-8]

Introduced

Summary

This bill would create a federal framework to expand permanently affordable, shared-equity homeownership by supporting community land trusts and similar models nationwide. It defines key players, sets long-term affordability rules, and funds grants, pilots, research, outreach, and surplus federal land transfers to support homes that stay affordable for decades.

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  • Families and homebuyers: It targets homes for households up to 120% of area median income, with some pilot sales limited to 80% AMI and long affordability periods of at least 99 years to keep resale prices below market.
  • Community land trusts, nonprofit developers, and certified community development financial institutions: The bill would fund a Lasting Home Affordability Fund that makes low-interest construction loans capped at 3 percent interest and 1 percent origination, with limited borrower cash requirements.
  • Federal agencies and local governments: HUD would run a $100 million-per-year pilot to acquire land and build homes and a research and outreach program with $3 million per year to spread best practices, and surplus federal land could be conveyed at a discount for perpetual affordable use, generally priced at 75 percent of market value.

*Would authorize about $609 million in new appropriations, increasing federal spending.*

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Low-cost Treasury loans for affordable homes

If enacted, the Department of the Treasury would create a Lasting Home Affordability Fund and award grants to start revolving loan funds that make low-cost construction loans. Loans would have interest capped at 3% and origination fees capped at 1%, and grantees could not require borrowers to hold more than 10% of project costs in liquid assets. Homes built with these loans must be sold initially and on resale to qualified homebuyers (households at or below 120% of AMI) under resale rules; Treasury must prioritize high rent‑burden, displacement-risk, redlined, and long-affordability projects. The Fund would get $100 million for FY2027 and funds would remain available until expended; grantees and Treasury must file annual reports.

Pilot grants for permanently affordable homes

If enacted, HUD would set up a pilot grant program to buy vacant land or existing/predeveloped property and build homes to sell under shared-equity rules. Homes would generally be for households at or below 80% of area median income, except rural projects may sell to households up to 120% of AMI. Properties bought with pilot grants would need permanent affordability protections and must be built or ready for sale within three years (HUD can extend for extenuating circumstances). HUD would get $100 million per year for FY2027–2031 and may use up to 10% of those funds for technical assistance; grantees must file streamlined reports and HUD must report to Congress after each year it spends money.

Definitions for shared-equity programs

If enacted, the bill would set statutory definitions for community land trusts and shared-equity homeownership. It would require affordability terms of at least 99 years (or the longest minimum allowed by State law) and define a qualified homebuyer as a household with income not more than 120% of area median income. The bill ties resale formulas to a specific HUD regulation in effect on March 28, 2025.

Education and research on shared-equity homes

If enacted, HUD would run a public awareness campaign within one year to explain community land trusts and other shared-equity homeownership models to consumers, lenders, builders, and real estate professionals. HUD would create web resources, give materials to housing counselors, and promote lender and appraisal guidance developed with the Federal Housing Finance Agency and the enterprises. The bill also funds HUD research and nonprofit technical assistance; $3 million per year is authorized for FY2027–2029 for the campaign and HUD must report to Congress after any fiscal year it spends these funds.

Sponsors & CoSponsors

Sponsor

Schrier, Kim [D-WA-8]

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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