Permanent Housing Affordability Act
- Sponsor
- Rep. Schrier, Kim [D-WA-8]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Mar 26, 2026
Bottom line
The Permanent Housing Affordability Act aims to expand access to permanently affordable homeownership for low- and moderate-income individuals through federal financial support, educational initiatives, and the strategic use of surplus federal land.
What it actually does
This bill establishes new federal programs to promote shared equity homeownership models, such as community land trusts, to increase the supply of permanently affordable housing. It creates a Treasury-administered fund for low-interest construction loans, a HUD pilot program for land and property acquisition grants, and mandates research and public awareness campaigns for shared equity housing. Additionally, it amends federal law to facilitate the conveyance of surplus federal land to shared equity models at a significant discount.
Proponents argue
Proponents argue that the bill directly addresses the national housing affordability crisis by fostering innovative, long-term solutions that create generational wealth and stabilize communities. They contend that shared equity models ensure public investments yield permanent affordability, preventing units from reverting to market rates, and that leveraging federal assets like surplus land is an efficient use of public resources.
Opponents contend
Critics might raise concerns about the significant federal spending authorized by the bill, arguing it represents an overreach into local housing markets and could distort prices. They may also question the administrative burden on federal agencies and local entities, as well as the long-term enforceability and efficiency of perpetual affordability restrictions.
The bill is moderately complex due to its multiple programs and amendments to existing law, requiring a dedicated reading to fully grasp its implications. This is a manageable task given its length.
Section 3
Establishes a Lasting Home Affordability Fund
This section directs the Secretary of the Treasury to create a program providing grants to eligible grantees (state agencies, housing authorities, or certified community development financial institutions). These grantees must then establish revolving funds to offer low-interest (maximum 3% interest, 1% origination fee) construction loans to eligible entities (local governments, nonprofits, community land trusts) for building or rehabilitating shared equity housing. The program prioritizes projects in high-cost burden areas, areas at risk of displacement or redlining, and those offering affordability terms longer than 99 years. Properties developed must be sold to qualified homebuyers (up to 120% of area median income) with permanent affordability mechanisms.
Supporters argue
Supporters argue that this fund directly addresses a critical capital gap for shared equity housing, enabling more units to be built and preserved as permanently affordable, especially in areas facing severe housing crises or historical disinvestment. It provides a sustainable funding mechanism through revolving loans.
Critics contend
Critics might contend that this represents an undue federal intervention into local housing markets, potentially distorting prices or creating administrative burdens for states and local entities. Concerns about the long-term sustainability of the revolving fund without continuous federal input might also be raised.
Tradeoffs
This provision balances the urgent need for affordable housing development with concerns about federal spending and market intervention. It aims to create permanent affordability but requires ongoing monitoring and administration by various levels of government and non-profit organizations.
Section 4
Establishes a HUD Grant Pilot Program for Land/Property Acquisition
This section directs the Secretary of Housing and Urban Development (HUD) to establish a pilot program offering grants directly to eligible entities (local governments, instrumentalities of states/local governments, or nonprofit organizations, including community land trusts). These grants are to be used for purchasing vacant land to develop housing or acquiring existing properties/predeveloped land for shared equity housing. Homes developed with these funds must be sold to households with incomes at or below 80% of the area median income (or 120% in rural areas) and include mechanisms like ground leases or deed restrictions to ensure permanent affordability and a resale formula. The Secretary prioritizes grants that maintain affordability for the longest term.
Section 5
Establishes Research, Awareness, and Outreach Programs for Shared Equity Housing
This section directs the Secretary of Housing and Urban Development (HUD), through its Office of Policy Development and Research, to conduct and disseminate research on best practices for community land trusts and other shared equity homeownership models. It also mandates a public awareness campaign to educate the public and the financial sector about the benefits and responsibilities of shared equity homeownership, including creating a webpage, disseminating information to housing counseling agencies, and providing guidance to lenders. The section also authorizes funding for technical assistance and capacity building for organizations managing shared equity models.
Section 6
Amends Federal Law to Facilitate Conveyance of Surplus Federal Land for Shared Equity Housing
This section amends Section 550 of title 40, United States Code, to allow the Administrator of General Services (GSA) to convey surplus federal real property to community land trusts or other shared equity homeownership models. The Secretary of Housing and Urban Development (HUD) must determine the property is suitable for this purpose. The deed of conveyance must ensure the property is used and maintained for shared equity housing in perpetuity, with a reversion clause to the Government if this condition is violated. Crucially, the sale or lease value of the property will be discounted by 75% or more of its market value, recognizing the public benefit of permanent affordable housing.
Allows the Administrator of General Services to convey surplus federal real property to community land trusts or other shared equity homeownership models at a discount of 75 percent or more of market value, provided the property is used for permanent affordable housing.
Section 6(a), amending 40 U.S.C. 550(i)
Why it matters:This is standard legislative practice for amending existing statutes. The specific details of the discount are technical aspects of property transfer, which are typically found in such subsections.
Case for: Supporters argue this is a highly efficient way to utilize federal assets for public good, directly reducing the cost of land for affordable housing, which is a major barrier. The substantial discount reflects the societal benefit of creating permanent affordability and leveraging public resources for community welfare.
Case against: Critics might argue that selling federal assets at such a deep discount could be seen as fiscally irresponsible, potentially leading to a loss of federal revenue that could be used for other priorities. Concerns about the precedent this sets for other asset dispositions might also be raised.
Estimated impact: Potentially significant reduction in land acquisition costs for shared equity housing projects, depending on the availability, suitability, and market value of surplus federal land conveyed under this authority.