[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4262 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 4262
To promote shared equity models of homeownership, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 26, 2026
Ms. Blunt Rochester introduced the following bill; which was read twice
and referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To promote shared equity models of homeownership, and for other
purposes.
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 ``Permanent Housing Affordability
Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Community development financial institution.--The term
``community development financial institution'' has the meaning
given the term in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C.
4702).
(2) Community land trust.--The term ``community land
trust'' means a nonprofit entity, a State, a unit of local
government, or an instrumentality of a State or unit of local
government--
(A) that is not managed by, or an affiliate of, a
for-profit organization;
(B) the primary purpose of which is acquiring,
developing, or holding land to provide housing that is
permanently affordable to low- and moderate-income
persons;
(C) that monitors properties to ensure
affordability is preserved;
(D) that provides housing that is permanently
affordable to low- and moderate-income persons using a
ground lease, deed covenant, or other similar legally
enforceable measure, determined acceptable by the
Secretary, that--
(i) keeps the housing affordable to low-
and moderate-income persons for not less than--
(I) 99 years; or
(II) the greatest minimum
affordability period permitted by
applicable State law, if that law
restricts minimum affordability periods
to a number of years that is less than
99; and
(ii) enables low- and moderate-income
persons to rent or purchase the housing for
homeownership; and
(E) that maintains preemptive purchase options to
purchase the property, if such purchase would allow the
housing to remain affordable to low- and moderate-
income persons.
(3) Eligible entity.--The term ``eligible entity'' means 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 manages a shared equity
homeownership model program.
(4) Eligible grantee.--The term ``eligible grantee''
means--
(A) any agency of a State;
(B) any authority chartered by a State to help meet
affordable housing needs of the residents of the State;
and
(C) a community development financial institution
that is certified by the Secretary of the Treasury.
(5) Qualified homebuyer.--The term ``qualified homebuyer''
means a homebuyer with a household income that is not more than
120 percent of the area median income.
(6) Resale formula.--The term ``resale formula'' means a
permissible method of determining fair return and resale price
under section 92.254(a)(5)(i)(A) of title 24, Code of Federal
Regulations, as in effect on March 28, 2025.
(7) Shared equity homeownership model.--The term ``shared
equity homeownership model'' means a model of resale-
restricted, owner-occupied housing the primary purpose of which
is to create and preserve a supply of owner-occupied units
affordable to low and moderate income households that--
(A) carry terms of affordability that are not less
than--
(i) 99 years; or
(ii) the greatest minimum affordability
period permitted by applicable State law, if
that law restricts minimum affordability
periods to a number of years that is less than
99; and
(B) restrict the resale value of properties in the
program according to a resale formula described in a
ground lease, deed restriction, or similar legal
mechanism.
SEC. 3. LASTING HOME AFFORDABILITY FUND.
(a) In General.--Not later than 90 days after the date of enactment
of this Act, the Secretary of the Treasury (in this section referred to
as the ``Secretary'') shall 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 and related proceeds
to establish a revolving fund and provide low-interest
construction loans to 1 or more eligible entities, which
amounts may be awarded to eligible entities on a rolling basis.
(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, as a condition of receiving a loan
under this section, that an eligible entity has more
than 10 percent of the amount to be loaned in liquid
assets at the time of the loan.
(3) Limitation.--An eligible entity that receives amounts
under this section may not be the same entity as the eligible
grantee that provides those amounts.
(4) Priority.--An eligible grantee shall prioritize loans
to eligible entities that plan to use amounts loaned under this
section to construct or rehabilitate properties--
(A) located in areas with high cost burden, as
determined by the Secretary, individuals at risk of
displacement due to rising housing costs, or redlining;
or
(B) that are required to be affordable as described
in subsection (e) for terms that are more than 99
years.
(d) Use of 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 sold to a
homebuyer, a member of a limited equity cooperative, or a community
land trust and used as a primary residence, including materials, labor
(including contractor fees), land development (including demolition and
grading), permit and developer fees, insurance costs, 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--
(1) may only sell or facilitate the sale of such property
to qualified homebuyers; and
(2) shall ensure any subsequent sales are to qualified
homebuyers at a below-market value that is determined by a
resale formula described in a ground lease, deed restriction,
or other similar mechanism.
(f) Areas of Service.--The Secretary shall seek to provide grants
to eligible grantees that will fund activities in geographically
diverse areas, including areas of persistent poverty, underserved
areas, and rural areas.
(g) Rulemaking.--The Secretary may issue rules to carry out this
section.
(h) Reporting.--
(1) Grantee reports.--The Secretary shall require each
grantee receiving grant amounts in any given year under this
section to submit a report, for such year and each year that
loans are made using grant funds, to the Secretary that
includes--
(A) the number of qualifying loans made;
(B) the organizations receiving loans;
(C) the number of outstanding loans on September
30th of the report year;
(D) the percentage of organizations belonging to
each type of eligible grantee as described in
subparagraphs (A) through (C) of section 2(4);
(E) the projected number of units constructed or
rehabilitated by each loan;
(F) the average interest rate on qualifying loans;
(G) the average origination fee on qualifying
loans;
(H) the median purchase price of the homes
constructed or rehabilitated by each loan compared to
the median market rate price in the area;
(I) the zip codes where the homes constructed or
rehabilitated by each loan are located;
(J) the area median income level of households
assisted;
(K) the percentage and number of loans made for the
purpose of construction;
(L) the percentage and number of loans make for the
purpose of rehabilitation;
(M) a description of any mechanism used to ensure
permanent affordability by each grantee, such as ground
leases, deed restrictions, covenants, or other
mechanisms;
(N) the resale formula used by each eligible entity
that receives a loan from the grantee; and
(O) where applicable, for each loan made, the
percentage of total project cost expected to be covered
by the loan.
(2) Report to congress.--Not later than 90 days after the
conclusion of each fiscal year in which assistance under this
section is made available, the Secretary shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives a report on amounts provided under this section
that contains, with aggregates, averages, and summaries, as
appropriate, information provided by grantees under paragraph
(1).
(i) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $100,000,000 for fiscal year 2027 to
carry out this section, to remain available until expended.
SEC. 4. LASTING AFFORDABILITY HOMEOWNERSHIP GRANT PILOT PROGRAM.
(a) In General.--The Secretary of Housing and Urban Development (in
this section referred to as the ``Secretary'') shall establish a pilot
program to provide grants to eligible entities.
(b) Use of Amounts.--Each eligible entity that receives amounts
under this section shall use such amounts to--
(1) purchase vacant land to develop housing and sell that
housing to homebuyers or members of a limited equity
cooperative; and
(2) purchase existing properties or predeveloped land on
which properties will be developed that will be sold to
homebuyers or members of a limited equity cooperative.
(c) Priority.--The Secretary shall prioritize the award of grants
to eligible entities that will maintain affordability for the homes
sold by the eligible entity for the longest term.
(d) Requirements.--
(1) Vacant land.--In the case of vacant land purchased by
an eligible entity under this section, the housing shall be
built and marketed for sale not later than 3 years after the
date of the purchase, which period may be extended at the
discretion of the Secretary for extenuating circumstances, such
as delays in the development process, provided that the
Secretary makes public a list of localities where such
extenuating circumstances are occurring.
(2) Existing land or properties.--In the case of existing
properties or predeveloped land purchased by an eligible entity
under this section, the homes shall be ready for sale to
homebuyers not later than 3 years after the date of the
purchase, which period may be extended at the discretion of the
Secretary for extenuating circumstances.
(3) All properties.--Each home developed with amounts
provided under this section shall be sold to households--
(A) with an income that is less than or equal to--
(i) 80 percent of the area median income;
or
(ii) 120 percent of the area median income,
if the home is located in a rural area;
(B) with ground leases, deed restrictions,
covenants, or other mechanisms to ensure permanent
affordability; and
(C) according to a resale formula determined by the
eligible entity.
(e) Reporting.--
(1) Eligible entity reports.--Not later than 2 years after
receiving a grant under this section, and biennially for 6
years thereafter, an eligible entity shall submit to the
Secretary a streamlined report that includes--
(A) as applicable, the number of acres purchased;
(B) as applicable, the number of units purchased;
(C) as applicable, the number of buildings and
units developed;
(D) as applicable, the number of buildings and
units renovated;
(E) a description of the ground leases, deed
restrictions, covenants, or other mechanisms used to
ensure permanent affordability;
(F) a description of the resale formula used;
(G) the number of households served;
(H) the average size of units;
(I) the median purchase price;
(J) to the extent possible, the average amount of
the down payment paid by households;
(K) the average tenure of residents;
(L) to the extent possible, the average credit
score of purchasers;
(M) the average delinquency and foreclosure rate;
and
(N) the average annual resident fees.
(2) Report to congress.--Not later than 90 days after the
conclusion of each fiscal year in which assistance under this
section is made available, the Secretary shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives a report on this section that contains, with
aggregates, averages, and summaries, as appropriate,
information provided by eligible entities under paragraph (1).
(f) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Secretary $100,000,000 for each of fiscal years 2027
through 2031 to carry out this section.
(2) Technical assistance.--Not more than 10 percent of
amounts appropriated under paragraph (1) may be used to provide
technical assistance to eligible entities that receive a grant
under this section.
SEC. 5. SHARED EQUITY HOUSING RESEARCH AND AWARENESS PROGRAMS.
(a) Housing Research.--
(1) In general.--The Secretary of Housing and Urban
Development (in this section referred to as the ``Secretary''),
acting through the Office of Policy Development and Research,
shall establish a program that conducts, supports, and
disseminates research about best practices for community land
trusts and other shared equity homeownership models, including
best practices regarding ground leases, deed restrictions, or
other legal mechanisms for preserving long-term affordability.
(2) Awards.--For States, local governments, Tribal
governments, and entities managing shared equity homeownership
models, including nonprofit organizations, the Secretary shall
provide funding to organizations representing nonprofit shared
equity model interests to create or sustain shared equity
homeownership models through technical assistance and capacity
building.
(3) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary such sums as may be
necessary to carry out this subsection.
(b) Public Awareness.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall conduct a public
awareness campaign to educate the public and the financial
sector about the benefits and responsibilities of shared equity
homeownership models, including community land trusts, which
may include--
(A) creating a web page to publicize shared equity
homeownership models;
(B) disseminating information to housing counseling
agencies or other entities to provide information to
potential homebuyers;
(C) providing information to lenders about the
shared equity homeownership model, including standard
ground leases and appraisal guidance developed by the
Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation; and
(D) to the extent possible, work with States, local
governments, Tribal governments, and entities managing
shared equity homeownership models, including nonprofit
organizations, to advance public awareness.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary $3,000,000 for each of
fiscal years 2027 through 2029 to carry out this subsection.
(c) Outreach.--
(1) In general.--The Secretary, in consultation and
coordination with other appropriate entities, including the
Federal Housing Finance Agency, shall carry out an education
and outreach campaign to inform and educate consumers, home
builders, residential lenders, and other real estate
professionals on the availability, benefits, and advantages of
community land trusts and other shared equity homeownership
models.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary such sums as may be
necessary to carry out this subsection.
(d) Report.--Not later than 90 days after the conclusion of each
fiscal year in which assistance under this section is made available,
the Secretary shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives a report on the shared equity housing
research and awareness programs described in this section that
includes, for the period covered by the report--
(1) a description of public awareness and public outreach
campaigns conducted by the Secretary;
(2) a description of consultation and coordination efforts
with the Federal Housing Finance Agency, including a
description of Federal Housing Finance Agency activities to
improve mortgage lender education and outreach that resulted
from consultation and coordination efforts;
(3) a description of the research conducted on best
practices for community land trusts and other shared equity
homeownership models; and
(4) the number and location of entities that received
technical assistance and capacity building on community land
trusts and other shared equity homeownership models.
SEC. 6. SURPLUS LAND.
(a) In General.--Section 550 of title 40, United States Code, is
amended--
(1) in subsection (a)--
(A) in the subsection heading, by striking
``Definition'' and inserting ``Definitions''; and
(B) by striking ``section, the term'' and inserting
``section--
``(1) the term `shared equity homeownership model' has the
meaning given the term in section 2 of the Permanent Housing
Affordability Act; and'';
(2) in subsection (b)(2)(D), by inserting ``and for
property transferred under subsection (i) to a community land
trust or other shared equity homeownership model'' after
``families''; and
(3) by adding at the end the following:
``(i) Property for Community Land Trust or Other Shared Equity
Homeownership Model.--
``(1) Conveyance.--The Administrator may convey to a
community land trust or other shared equity homeownership model
the right, title, and interest of the Government in and to any
surplus real property that the Secretary of Housing and Urban
Development determines is suitable for a community land trust
or other shared equity homeownership model.
``(2) Deed of conveyance.--The deed of conveyance of any
surplus real property disposed of under this subsection--
``(A) shall provide that all of the property be
used and maintained for purposes of a community land
trust or other shared equity homeownership model in
perpetuity, and that if the property ceases to be used
or maintained in a community land trust or other shared
equity homeownership model, all or any portion of the
property shall, in its then existing condition, at the
option of the Government, revert to the Government; and
``(B) may contain additional terms, reservations,
restrictions, and conditions the Administrator
determines are necessary to safeguard the interests of
the Government.
``(3) Fixing value.--
``(A) In general.--In fixing the sale or lease
value of property disposed of under paragraph (2), the
Secretary of Housing and Urban Development shall take
into consideration and discount the value for any
benefit which has accrued or may accrue to the
Government from the use of the property by the
community land trust or other shared equity
homeownership model.
``(B) Amount of discount.--The amount of the
discount under subparagraph (A) is 75 percent of the
market value of the property, except that the Secretary
of Housing and Urban Development may discount by a
greater percentage if the Secretary, in consultation
with the Administrator, determines that a higher
percentage is justified.''.
(b) Report.--Not later than 90 days after the conclusion of each
fiscal year in which assistance under section 550(i) of title 40,
United States Code, as added by subsection (a), is made available, the
Secretary of Housing and Urban Development shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a
report on surplus land that includes--
(1) the number of surplus real properties conveyed by the
Federal Government for the purpose of affordable housing,
including such properties that were conveyed to a community
land trust or other shared equity homeownership model; and
(2) the average discounted value of real property conveyed
by the Federal Government for the purpose of affordable
housing, including such real property that was conveyed to a
community land trust or other shared equity homeownership
model.
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