Permanent Housing Affordability Act
- Bill Number
- H.R. 8127
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-03-26: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-04-30T18:14:53Z
AI-Generated Summary
Purpose
The Permanent Housing Affordability Act (H.R. 8127) aims to increase long-term affordable homeownership opportunities for low- and moderate-income households through shared equity homeownership models. These models use legal tools like ground leases or deed restrictions to limit resale prices, ensuring homes remain affordable (typically for 99 years or the maximum allowed by state law) rather than appreciating to full market value.
Key Provisions
- Definitions (Sec. 2): Establishes terms including:
- Community land trust: Nonprofit or government entity holding land to provide permanently affordable housing via long-term restrictions.
- Qualified homebuyer: Household income ≤120% of area median income (AMI).
- Shared equity homeownership model: Resale-restricted housing for low/moderate-income owners with affordability terms ≥99 years.
- Resale formula: Method to calculate below-market resale prices (references existing federal regulations).
- Lasting Home Affordability Fund (Sec. 3):
- Treasury Secretary creates grant program for state agencies, housing authorities, or certified community development financial institutions (CDFIs).
- Grantees provide low-interest (≤3%) construction loans (≤1% origination fee) to nonprofits, local governments, or community land trusts for building/rehabilitating affordable homes.
- Loans prioritize high-cost-burden areas, displacement-risk zones, or properties with >99-year affordability.
- Homes must sell to qualified homebuyers at below-market prices, with resale restrictions.
- Authorization: $100 million for FY2027.
- Annual reporting on loans, units, prices, and affordability mechanisms.
- Lasting Affordability Homeownership Grant Pilot Program (Sec. 4):
- HUD Secretary awards grants to eligible entities (local governments, nonprofits, community land trusts) to buy vacant land, existing properties, or predeveloped sites.
- Homes must be ready for sale within 3 years (extendable for delays) to households ≤80% AMI (or ≤120% in rural areas).
- Requires permanent affordability via ground leases/deed restrictions and a resale formula.
- Prioritizes longest affordability terms.
- Authorization: $100 million annually for FY2027–2031 (up to 10% for technical assistance).
- Biennial reporting for 8 years on units, prices, buyer data, and affordability tools.
- Shared Equity Housing Research and Awareness Programs (Sec. 5):
- HUD funds research on best practices (e.g., ground leases for affordability).
- Provides technical assistance/capacity building to governments and nonprofits.
- Launches public awareness campaign (webpage, counseling, lender info) and outreach to homebuyers, builders, lenders.
- Annual reports to Congress on activities and research.
- Authorizations: Such sums as necessary (research/tech assistance); $3 million/year FY2027–2029 (awareness).
- Surplus Federal Land (Sec. 6):
- Amends federal law (40 U.S.C. §550) to allow conveyance of surplus property to community land trusts/shared equity models.
- Properties valued at 75% discount (or more if justified), with perpetual affordability requirements and government reversion rights if violated.
- HUD determines suitability; annual reports on conveyances and discounts.
Significant Changes to Existing Law
- Introduces new federal grant/loan programs via Treasury and HUD, not previously authorized at this scale for shared equity models.
- Expands surplus federal property disposal (40 U.S.C. §550) to explicitly include community land trusts/shared equity models with deep discounts, beyond prior focuses on low-income housing.
Potential Impacts
- Government Agencies: Treasury/HUD administer new programs with rulemaking/reporting duties; GSA (via Administrator) handles surplus land transfers. Increases oversight and data collection.
- Citizens: Boosts affordable homeownership supply in high-need areas (e.g., high costs, redlining, rural/persistent poverty), aiding low/moderate-income buyers (≤120% AMI) via below-market purchases and wealth-building without full market resale gains.
- International Relations: None direct.
- Overall: Could create/retain thousands of affordable units, promote revolving loan funds for sustainability, but depends on appropriations.
Main Stakeholders Affected
- Beneficiaries: Low/moderate-income homebuyers (especially ≤80–120% AMI), limited equity cooperatives.
- Implementers: Nonprofits, community land trusts, local/state governments, CDFIs, housing authorities.
- Overseers: U.S. Treasury, HUD, Federal Housing Finance Agency (for lender coordination).
- Others: Lenders, homebuilders, real estate professionals (via education); federal agencies with surplus land.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on existing resale formulas and state law flexibility; enforceable via deed restrictions/ground leases with federal reversion rights on surplus land. Emphasizes transparency through mandatory reporting.
- Constitutional: No apparent issues; uses spending power for housing policy without mandating state action.
- Political: Addresses housing affordability crisis by innovating beyond traditional subsidies; pilot nature allows testing before expansion. Neutral on property rights by requiring voluntary participation and buyer consent to restrictions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-03-26: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-03-26: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-03-26: Introduced in House
- 2026-03-26: Introduced in House
Bill Versions
- Permanent Housing Affordability Act — issued 2026-03-26 — PDF (22 pages)