Protect Our Homes Act
- Sponsor
- Rep. Soto, Darren [D-FL-9]
- Committees
- Small Business Committee (primary)
- Last action
- Jun 4, 2026
Bottom line
The bill creates a new SBA loan program to help homeowner associations fund repairs and mitigation efforts for common areas after disasters, expanding federal disaster relief access to residential communities.
What it actually does
This bill establishes a new program within the Small Business Administration (SBA) to provide supplemental disaster loans to homeowner associations (referred to as 'covered entities'). These loans are specifically for repairing residential common areas damaged by natural disasters or acts of God, and for implementing disaster mitigation measures to protect property from future damage. The program sets specific loan criteria, including limits, interest rates, and collateral requirements, and defines eligible entities and property types.
Proponents argue
Supporters argue that this bill addresses a critical gap in disaster relief, as homeowner associations often struggle to fund repairs to common areas (such as clubhouses, shared infrastructure, and pools) after natural disasters. This program would help communities recover faster, maintain property values, and build resilience against future events, thereby protecting homeowners' investments and ensuring the viability of shared community spaces.
Opponents contend
Critics might argue that expanding the SBA's lending programs to homeowner associations could increase federal exposure to risk, potentially diverting resources from traditional small business disaster relief. Concerns could also be raised about the administrative burden on the SBA to manage a new type of loan program for residential entities, and whether homeowner associations are the most appropriate recipients for federal disaster loans given the potential for moral hazard or the availability of private insurance.
The bill is concise and clearly structured, making it accessible for an informed reader to evaluate within a reasonable timeframe.
Section 2, adding subsection (o)(1) to Section 7 of the Small Business Act
Establishment of SBA Supplemental Disaster Loan Program for Homeowner Associations
This provision creates a new program under the Small Business Administration (SBA) called the 'Residential Common Area Repair Loan program.' Under this program, the SBA can make loans directly or in partnership with banks to 'covered entities' (homeowner associations). These loans are intended for two main purposes: to fund repairs to residential common areas damaged by disasters and to implement measures to protect property from future disasters in areas recently affected by a disaster.
Supporters argue
Supporters argue this program fills a crucial gap in disaster recovery, as common areas are essential to residential communities but often fall outside the scope of individual homeowner insurance or traditional SBA business loans. Providing direct assistance to HOAs ensures that shared infrastructure and amenities can be repaired, benefiting all residents and accelerating community-wide recovery.
Critics contend
Opponents might contend that this expands the SBA's mission beyond its core focus on small businesses and could create an expectation of federal assistance for entities that should primarily rely on private insurance or reserves. They might also question the administrative capacity of the SBA to manage a new loan program for residential entities.
Tradeoffs
The tension lies between providing comprehensive disaster relief to all affected parties, including residential communities, and maintaining the focused mission and fiscal responsibility of federal agencies like the SBA.
Section 2, adding subsection (o)(2) and (o)(3) to Section 7 of the Small Business Act
Loan Eligibility, Limits, Interest Rates, and Collateral Requirements
This provision outlines the specific conditions for receiving these supplemental loans. Homeowner associations are eligible only if they have already reached the applicable limit on existing SBA disaster loans for the same disaster. The maximum loan amount is generally $500,000, but can be up to $2,000,000 (or more, if determined by the Administrator) for HOAs deemed a 'major source of employment' in a disaster area. The interest rate is set at the average annual interest rate on public debt plus 0.25%, with a maximum loan duration of 30 years. Loans of $14,000 or less do not require collateral.
Section 2, adding subsection (o)(5)(B) and (o)(5)(I) to Section 7 of the Small Business Act
Definitions of 'Covered Entity' and 'Residential Common Area'
This section precisely defines the eligible borrowers and property types for the loan program. A 'covered entity' is an organization whose members are owners of dwelling units in a single residential community, responsible for managing common areas and enforcing rules. A 'residential common area' is an area or space operated and maintained by the covered entity for the benefit of residents, excluding areas within individual dwelling units (like houses, townhouses, or condominiums).
Allows for a higher loan limit (up to $2,000,000 or such other amount established by the Administrator) for a borrower that 'constitutes a major source of employment in an area suffering a disaster.'
Section 2, adding subsection (o)(3)(A)(i) to Section 7 of the Small Business Act
Why it matters:This is likely standard legislative practice of incorporating existing statutory language by reference or direct copy-paste, rather than a deliberate attempt to hide. However, its practical application to HOAs is noteworthy and could be easily overlooked.
Case for: Proponents might argue that some very large HOAs, particularly those with extensive facilities (e.g., golf courses, marinas, large staff for maintenance, security, and administration), could indeed be significant employers in certain communities. This provision would ensure they have adequate resources for recovery, protecting local jobs.
Case against: Critics might argue that this clause is largely inapplicable to the vast majority of HOAs, which typically have minimal direct employment. Its inclusion could create ambiguity or set an unrealistic expectation for HOAs to qualify for the higher loan limit, potentially leading to administrative challenges for the SBA in determining eligibility and diverting focus from the primary intent of the bill.
Estimated impact: Unclear, as it depends on how many HOAs could realistically qualify as 'major sources of employment.' Likely minimal impact given the nature of most HOAs, but could be significant for a few large, employer-heavy HOAs that meet the criteria.