[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9356 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 9356

 To require the Secretary of the Treasury to establish a pilot program 
   to provide grants to eligible grantees to use for the purpose of 
    providing low-interest construction loans to eligible entities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 13, 2024

 Ms. Schrier introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of the Treasury to establish a pilot program 
   to provide grants to eligible grantees to use for the purpose of 
    providing low-interest construction loans to eligible entities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Lasting Home Affordability Act of 
2024''.

SEC. 2. LASTING HOME AFFORDABILITY FUND.

    (a) In General.--The Secretary of the Treasury shall, not later 
than 90 days year after the date of the enactment of this section, 
establish a program to provide grants to eligible grantees to use for 
the purpose of providing low-interest construction loans to eligible 
entities.
    (b) Application by Eligible Grantees.--To be eligible to receive 
amounts under this section, an eligible grantee shall submit an 
application at such time and in such manner as the Secretary may 
reasonably require, including a detailed description of--
            (1) how the eligible grantee intends to use any amounts 
        provided under this section; and
            (2) the qualifications such eligible grantee has that will 
        allow such eligible grantee to successfully administer a grant 
        under this section.
    (c) Use of Amounts by Eligible Grantees.--
            (1) In general.--Any eligible grantee that receives amounts 
        under this section shall use such amounts to establish a 
        revolving fund and provide low-interest construction loans to 1 
        or more eligible entities.
            (2) Loan requirements.--
                    (A) In general.--Loans provided by an eligible 
                grantee to an eligible entity using amounts provided 
                under this section shall--
                            (i) have an interest rate of not more than 
                        3 percent; and
                            (ii) have an origination fee of not more 
                        than 1 percent of the amount of the loan.
                    (B) Liquidity requirements.--An eligible grantee 
                may not require an eligible entity to have more than 10 
                percent of any amount to be loaned as a prerequiste for 
                providing such loan.
    (d) Use of Eligible Amounts by Eligible Entities.--An eligible 
entity may use amounts loaned by an eligible grantee for costs 
associated with the construction or rehabilitation of housing intended 
to be purchased and used as a primary residence, including materials, 
labor (including contractor fees), land development (including 
demolition and grading), permit and developer fees, on-site 
infrastructure costs (including the installation of roads, water, 
electrical, sewer, storm drainage, and sidewalks); and predevelopment 
(including architectural costs and engineering costs).
    (e) Affordability Requirement.--An eligible entity that uses 
amounts loaned under this section to construct or rehabilitate a 
property may only sell such property to a household who's income is 
less than or equal to 120 percent of the area median income and shall 
ensure that if the property is subsequently sold during the 30-year 
period after the date on which the eligible entity sold the property 
that the property is only sold to households who's income is less than 
or equal to 120 percent of the area median income.
    (f) Rulemaking.--The Secretary may issues rules to carry out this 
section.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary, $100,000,000 for fiscal year 2025 to 
carry out this section.
    (h) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means a 
        State, a unit of local government, an instrumentality of a 
        State or unit of local government, or a nonprofit organization, 
        including a community land trust, that uses ground leases, deed 
        restrictions, and other similar mechanisms when selling a 
        property owned by the eligible entity to--
                    (A) maintain the property as affordable for 
                households who's income does not exceed 120 percent of 
                area median income;
                    (B) apply a resale formula that limits the buyers 
                proceeds upon resale to allow for a fair and equitable 
                return while ensuring the home is affordable for 
                subsequent qualified homebuyers; and
                    (C) provides the State, unit of local government, 
                instrumentality of such State or unit of local 
                government, or nonprofit organization a preemptive 
                option to purchase the property from the buyer if the 
                buyer chooses to sell the property in the future.
            (2) Eligible grantee.--The term ``eligible grantee'' 
        means--
                    (A) any agency of a State; or
                    (B) any authority chartered by a State to help meet 
                affordable housing needs of the residents of the State.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
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