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HR 8127

Permanent Housing Affordability Act

119th Congress Introduced by Kim Schrier

Promotes long-term affordable, shared-ownership housing (community land trusts) using federal funds and surplus land to keep homes affordable for decades.

Introduced in House
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Bill Summary · HR 8127

Summary: Permanent Housing Affordability Act (H.R. 8127, 119th Congress)

Aims to promote shared equity models of homeownership and expand long-term affordability through community land trusts and related mechanisms. The bill establishes definitions, funding programs, pilot initiatives, research and outreach efforts, and reforms to surplus federal land to support these models.

1) Purpose and Intent

  • Create and preserve long-term housing affordability for low- and moderate-income households.
  • Promote shared equity homeownership models (including community land trusts) with resale restrictions and ground leases or similar mechanisms.
  • Utilize federal funding and surplused federal land to support financing, development, and stewardship of these models.
  • Increase public awareness and professional education about shared equity housing to lenders, housing counselors, homebuyers, and policymakers.

2) Key Provisions and Changes

A. Definitions (Section 2)

  • Community Land Trust (CLT): A non-profit, state, or local government body (not-for-profit affiliated) that acquires/holds land to provide permanently affordable housing, monitors affordability, and uses ground leases or similar mechanisms to keep housing affordable for at least 99 years (or the longest period allowed by state law, if longer than 99 is not possible). Maintains preemptive purchase options.
  • Eligible Entity: Local/local/state government unit or non-profit entity that manages a shared equity model program.
  • Eligible Grantee: State agency, state-chartered affordable housing authority, or a certified Community Development Financial Institution (CDFI) authorized by the Treasury.
  • Qualified Homebuyer: Household income not exceeding 120% of area median income (AMI).
  • Resale Formula: Method for determining fair return and resale price per 24 CFR §92.254.
  • Shared Equity Homeownership Model: Grounded in resale-restricted, owner-occupied housing with affordability lasting at least 99 years or the maximum state-law period; includes resale price restrictions.

B. Lasting Housing Affordability Fund (Section 3)

  • Establish a grant program within 90 days of enactment to provide funds to eligible grantees to offer low-interest construction loans to eligible entities.
  • Loan terms: Interest rate ≤ 3%, origination fee ≤ 1%.
  • Liquidity rule: Grantees may not require eligible entities to have more than 10% liquid assets to obtain a loan.
  • Priority: Favor loans for projects in high-cost-burden areas, displacement-risk areas, redlined areas, or those with affordability terms >99 years.
  • Use of funds: Construction or rehabilitation of properties to be sold to qualified homebuyers, limited equity co-ops, or CLTs; affordability secured via ground leases, deeds, or similar mechanisms.
  • Eligible areas: Geographic diversification, including persistent poverty areas, underserved, and rural areas.
  • Reporting: Grantees must report loan activity, recipient organizations, units financed, affordability mechanisms, resale formulas, and other impact metrics.
  • Authorization: $100 million annually from FY 2027 through 2031 to carry out this section.

C. Lasting Affordability Homeownership Grant Pilot Program (Section 4)

  • HUD pilot program to provide grants to eligible entities to acquire land or properties to develop housing for sale to homebuyers or CLT members.
  • Priority to entities maintaining affordability for the longest term.
  • Requirements:
    • Vacant land must have housing constructed and marketed within 3 years (extensions allowed with public notice of extenuating circumstances).
    • Existing land/properties must be ready for sale within 3 years (extensions allowed for extenuating circumstances).
    • Target buyers: Households at or below 80% AMI, or up to 120% AMI in rural areas.
    • Affordability: Ground leases/deed restrictions/covenants ensuring permanent affordability; resale formulas applied.
  • Reporting: Biennial progress reports detailing land/unit acquisition, development, affordability mechanisms, and other program metrics.
  • Authorization: $100 million per year for FY 2027–2031; up to 10% of funds may be used for technical assistance.

D. Shared Equity Housing Research and Awareness Programs (Section 5)

  • HUD research program to study best practices for CLTs and shared equity models; funding to support capacity-building and technical assistance.
  • Public awareness campaign within 1 year of enactment, including:
    • Web presence, outreach to counseling agencies and lenders, and coordination with lenders for appraisal and standardization guidance (e.g., HFA/FHFA alignment).
  • Reporting: Annual/periodic reports detailing campaigns, research outcomes, and number and location of entities receiving assistance.
  • Authorization: Funds as necessary to administer this subsection.

E. Surplus Federal Land (Section 6)

  • Amendments to 40 U.S.C. 550:
    • Define surplus land conveyance to CLTs or other shared equity models.
    • Deed terms to ensure perpetual use for shared equity models; if the property ceases to be used as such, title can revert to the government.
    • Discounted sale/lease value: Government land conveyed at up to 75% of market value (potentially higher with justification).
  • Reporting: Annual federal surplus land conveyance reports, including numbers and discounted values of properties conveyed for affordable housing and to CLTs or similar models.

3) Who Would Be Affected

  • Eligible grantees: State and local government agencies, state-chartered affordable housing authorities, and certified CDFIs.
  • Eligible entities: Community land trusts, non-profit organizations, and other entities managing shared equity models.
  • Homebuyers: Households at or below specified income limits (generally ≤120% AMI; many programs target ≤80% AMI or ≤120% in rural areas).
  • Lenders, housing counselors, developers, and local governments would engage with new standards, reporting, and awareness programs.

4) Procedural and Timeline Elements

  • Enactment triggers several timelines:
    • 90 days to establish the Lasting Housing Affordability Fund program.
    • Public awareness campaign within 1 year.
    • Grants and loans managed with rolling applications and annual appropriations through FY 2031 for the main funding sections.
  • Reporting requirements to Senate Banking, Housing, and Urban Affairs and House Financial Services, with annual or year-end summaries.
  • Surplus land provisions would require coordination with HUD and the General Services Administration, plus annual reporting on conveyances and discounted values.
  • Overall funding:
    • $100 million per year for 2027–2031 for the grant-loan program and pilot ownership grants.
    • $3 million per year (FY 2027–2029) for public awareness/outreach through the research program (in addition to broader, flexible funding for other sections).

This Act would significantly broaden federal support for long-term affordable homeownership via shared equity, incentivize use of surplus Federal land for CLTs, and demand comprehensive data reporting to track impact and affordability outcomes.

Compiled from official sources — confirm details with the bill’s official record.

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