Community Housing Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9540 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                                H. R. 9540

 To address the housing crisis through strong perpetual affordability
   provisions and shared equity housing models, bold investments to
 increase and preserve the national affordable housing supply, center
inclusive local zoning and land use, provide relief for rural renters,
                  and funding paths to homeownership.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 2026

  Ms. Balint (for herself, Mr. Garcia of Illinois, Mr. Goldman of New
 York, Ms. Norton, Ms. Stansbury, Mr. Mullin, Mr. Jackson of Illinois,
Mr. Johnson of Georgia, Ms. Garcia of Texas, Mrs. McIver, Ms. Omar, Ms.
 Tlaib, Mr. McGovern, and Mrs. Ramirez) introduced the following bill;
   which was referred to the Committee on Financial Services, and in
    addition to the Committee on Ways and Means, 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

_______________________________________________________________________

                                 A BILL

 To address the housing crisis through strong perpetual affordability
   provisions and shared equity housing models, bold investments to
 increase and preserve the national affordable housing supply, center
inclusive local zoning and land use, provide relief for rural renters,
                  and funding paths to homeownership.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Community Housing
Act of 2026''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; Table of contents.
Sec. 2. Congressional findings.
Sec. 3. Severability.
                 TITLE I--INVESTMENTS IN HOUSING SUPPLY

Sec. 101. Housing trust fund.
Sec. 102. GSE basis point fee.
Sec. 103. Capital magnet fund.
Sec. 104. Investments in affordable and accessible housing production.
Sec. 105. Unlocking possibilities program.
Sec. 106. Repeal of Faircloth Amendment.
Sec. 107. Establishment of HUD Office of Community Land Use and Zoning.
          TITLE II--RENTAL SUPPORT AND PERPETUAL AFFORDABILITY

Sec. 201. HUD eviction protection grant program.
Sec. 202. Shared equity housing resources.
Sec. 203. Homeownership assistance.
Sec. 204. Report on tax on secondary homes.
Sec. 205. Shared equity housing fund.
Sec. 206. Historic Tax Credit Modernization.
     TITLE III--LOW-COST FINANCING FOR AFFORDABLE HOUSING PROJECTS

Sec. 301. Expanding Federal Home Loan Bank Contributions to Affordable
                            Housing.
Sec. 302. Continuation of FHA-FFB affordable rental housing financing
                            partnership.
Sec. 303. Allow GSES to purchase mezzanine debt.
                        TITLE IV--RURAL HOUSING

Sec. 401. Permanent establishment of housing preservation and
                            revitalization program; decoupling rental
                            assistance.
Sec. 402. Interagency task force to coordinate delivery of substance
                            use disorder treatment and affordable
                            housing availability.
Sec. 403. Rural rental housing loans.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) the cost of housing for all Americans has increased
        dramatically and wages have not kept pace with these increases
        over the last 50 years;
            (2) the Housing Trust Fund (HTF) provides a dedicated,
        permanent source of funding for affordable housing;
            (3) the HTF is an important source of financing for State
        housing finance agencies, used along with tax credits and the
        HOME Investment Partnership program (HOME);
            (4) the Capital Magnet Fund (CMF) provides funding to
        nonprofits and Community Development Financial Institutions
        (CDFIs) to expand financing for the development,
        rehabilitation, and purchase of affordable housing and other
        related economic development projects in distressed
        communities;
            (5) the HTF and CMF are funded through contributions from
        the Government-sponsored enterprises (GSEs) Fannie Mae and
        Freddie Mac;
            (6) the HOME program is used, in combination with housing
        tax credits, by state housing finance agencies to build
        affordable rental housing;
            (7) the HOME program is also the primary Federal resource
        for the construction of affordable family homes;
            (8) despite its importance and effectiveness, the HOME
        program has not been adequately funded in relation to
        increasing costs associated with single family and multifamily
        housing construction;
            (9) restrictive land use regulations disproportionately
        affect low- and moderate-income families by limiting the
        availability of quality affordable housing and driving up the
        costs of existing housing;
            (10) public housing agencies are unnecessarily prohibited
        from increasing their number of public housing units above the
        total they had in 1992 under a provision of law commonly
        referred to as the Faircloth limit;
            (11) community land trusts or shared equity housing
        programs are crucial for ensuring perpetual housing
        affordability;
            (12) community land trusts or related shared equity housing
        programs have established legal frameworks to keep homes
        affordable for more than 30 years;
            (13) there are over 300 community land trust entities in
        the United States encompassing 43,931 housing units;
            (14) rental housing subsidized by the Rural Housing Service
        (RHS) of the Department of Agriculture is often the only
        affordable option in rural communities;
            (15) more than half of extremely low-income rural renters
        experience housing insecurity;
            (16) state and local housing finance agencies are
        innovating new ways to finance and cross-subsidize the creation
        of affordable mixed income public housing without depending on
        the use of scarce low-income housing tax credits;
            (17) low-cost debt is one of the primary ways countries
        around the world subsidize housing affordable housing
        development; and
            (18) state and local housing finance agencies in the United
        States have reported strong support for access to low cost
        Federal financing.

SEC. 3. SEVERABILITY.

    If any provision of this Act, any amendment made by this Act, or
the application of any such provision or amendment to any person or
circumstance is held to be unconstitutional, the remainder of this Act
and of the amendments made by this Act, and the application of the
remaining provisions of this Act and amendments to any person or
circumstance shall not be affected.

                 TITLE I--INVESTMENTS IN HOUSING SUPPLY

SEC. 101. HOUSING TRUST FUND.

    Section 1338(a) of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C. 4568(a)) is amended by adding at
the end the following:
            ``(3) Appropriation.--In addition to amounts otherwise made
        available, there is appropriated to the Housing Trust Fund, out
        of any money in the Treasury not otherwise appropriated,
        $44,500,000,000 for each of fiscal years 2027 through 2036.''.

SEC. 102. GSE BASIS POINT FEE.

    Section 1337(a) of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C. 4567) is amended--
            (1) in paragraph (1)(A), by striking ``4.2 basis points''
        and inserting ``10 basis points''; and
            (2) in paragraph (2)(A), by striking ``4.2 basis points''
        and inserting ``10 basis points''.

SEC. 103. CAPITAL MAGNET FUND.

    Section 1339 of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C. 4569) is amended by adding at the
end the following:
    ``(k) Appropriation.--In addition to amounts otherwise made
available, there is appropriated to the Capital Magnet Fund, out of any
money in the Treasury not otherwise appropriated, $1,500,000,000 for
each of fiscal years 2027 through 2036.''.

SEC. 104. INVESTMENTS IN AFFORDABLE AND ACCESSIBLE HOUSING PRODUCTION.

    (a) Appropriation.--In addition to amounts otherwise made
available, there is appropriated to the Secretary of Housing and Urban
Development (in this section referred to as the ``Secretary'') for
fiscal year 2027, out of any money in the Treasury not otherwise
appropriated--
            (1) $9,925,000,000, to remain available until September 30,
        2030, for activities and assistance for the HOME Investment
        Partnerships Program (in this section referred to as the ``HOME
        program''), as authorized under sections 241 through 242, 244
        through 253, 255 through 256, and 281 through 290 of the
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
        12741-12742, 42 U.S.C. 12744-12753, 42 U.S.C. 12755-12756, 42
        U.S.C. 12831-12840) (in this section referred to as ``NAHA''),
        subject to the terms and conditions paragraph (1)(A) of
        subsection (b);
            (2) $14,925,000,000, to remain available until September
        30, 2030, for activities and assistance for the HOME Investment
        Partnerships Program, as authorized under sections 241 through
        242, 244 through 253, 255 through 256, and 281 through 290 of
        the Cranston-Gonzalez National Affordable Housing Act (42
        U.S.C. 12741-12742, 42 U.S.C. 12744-12753, 42 U.S.C. 12755-
        12756, 42 U.S.C. 12831-12840), subject to the terms and
        conditions in paragraphs (1)(B) and (2) of subsection (b);
            (3) $50,000,000, to remain available until September 30,
        2036, to make new awards or increase prior awards to existing
        technical assistance providers to provide an increase in
        capacity building and technical assistance available to any
        grantees implementing activities or projects consistent with
        this section; and
            (4) $100,000,000, to remain available until September 30,
        2036, for the costs to the Secretary of administering and
        overseeing the implementation of this section and the HOME and
        Housing Trust Fund programs generally, including information
        technology, financial reporting, research and evaluations, and
        other cross-program costs in support of programs administered
        by the Secretary in this title, and other costs.
    (b) Terms and Conditions.--
            (1) Formulas.--
                    (A) The Secretary shall allocate amounts made
                available under subsection (a)(1) pursuant to section
                217 of NAHA (42 U.S.C. 12747) to grantees that received
                allocations pursuant to that same formula in fiscal
                year 2024 and shall make such allocations within 60
                days of the enactment of this Act.
                    (B) The Secretary shall allocate amounts made
                available under subsection (a)(2) pursuant to the
                formula specified in section 1338(c)(3) of the Federal
                Housing Enterprises Financial Safety and Soundness Act
                of 1992 (12 U.S.C. 4568(c)(3)) to grantees that
                received Housing Trust Fund allocations pursuant to
                that same formula in fiscal year 2027 and shall make
                such allocations within 60 days of the date of the
                enactment of this Act.
            (2) Eligible activities.--Other than as provided in
        paragraph (5) of this subsection, funds made available under
        subsection (a)(2) may only be used for eligible activities
        described in subparagraphs (A) through (B)(i) of section
        1338(c)(7) of the Federal Housing Enterprises Financial Safety
        and Soundness Act of 1992 (12 U.S.C. 4568(c)(7)), except that
        not more than 10 percent of funds made available may be used
        for activities under such subparagraph (B)(i).
            (3) Funding restrictions.--The commitment requirements in
        section 218(g) (42 U.S.C. 12748(g)) of NAHA, the matching
        requirements in section 220 (42 U.S.C. 12750) of NAHA, and the
        set-aside for housing developed, sponsored, or owned by
        community housing development organizations required in section
        231 of NAHA (42 U.S.C. 12771) shall not apply for amounts made
        available under this section.
            (4) Reallocation.--For funds provided under paragraphs (1)
        and (2) of subsection (a), the Secretary may recapture certain
        amounts remaining available to a grantee under this section or
        amounts declined by a grantee, and reallocate such amounts to
        other grantees under that paragraph to ensure fund expenditure,
        geographic diversity, and availability of funding to
        communities within the State from which the funds have been
        recaptured.
            (5) Administration.--Notwithstanding subsections (c) and
        (d)(1) of section 212 of NAHA (42 U.S.C. 12742), grantees may
        use not more than 15 percent of their allocations under this
        section for administrative and planning costs.
    (c) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of the Cranston-Gonzalez National
Affordable Housing Act specified in subsection (a)(1) or (a)(2) or
regulation for the administration of the amounts made available under
this section other than requirements related to tenant rights and
protections, fair housing, nondiscrimination, labor standards, and the
environment, upon a finding that the waiver or alternative requirement
is necessary to facilitate the use of amounts made available under this
section.
    (d) Implementation.--The Secretary shall have authority to issue
such regulations, notices, or other guidance, forms, instructions, and
publications to carry out the programs, projects, or activities
authorized under this section to ensure that such programs, projects,
or activities are completed in a timely and effective manner.

SEC. 105. UNLOCKING POSSIBILITIES PROGRAM.

    (a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
for fiscal year 2027, out of any money in the Treasury not otherwise
appropriated--
            (1) $1,646,000,000 for awarding grants under sections 101,
        102, 103, 104(a) through 104(i), 104(l), 104(m), 105(a) through
        105(g), 106(a)(2), 106(a)(4), 106(b) through 106(f), 109, 110,
        111, 113, 115, 116, 120, and 122 of the Housing and Community
        Development Act of 1974 (42 U.S.C. 5301, 5302, 5303, 5304(a)-
        (i), 5304(l), 5304(m), 5305(a)-(g), 5306(a)(2), 5306(a)(4),
        5306(b)-(f), 5309, 5310, 5311, 5313, 5315, 5316, 5319, and
        5321) awarded on a competitive basis to eligible recipients to
        carry out grants under subsection (c) of this section;
            (2) $8,000,000 for research and evaluation related to
        housing planning and other associated costs;
            (3) $3,000,000 to provide technical assistance to grantees
        or applicants for grants made available by this section; and
            (4) $66,000,000 for the costs to the Secretary of
        administering and overseeing the implementation of this section
        and community and economic development programs overseen by the
        Secretary generally, including information technology,
        financial reporting, research and evaluations, and other cross-
        program costs in support of programs administered by the
        Secretary in this title, and other costs.
Amounts appropriated by this section shall remain available until
September 30, 2036.
    (b) Program Establishment.--The Secretary of Housing and Urban
Development, acting through the Director of the Office of Community
Land Use and Zoning Reform established under section 4(i) of the
Department of Housing and Urban Development Act (as added by the
amendment made by section 107(a) of this Act), shall establish a
competitive grant program for--
            (1) planning grants to develop and evaluate housing plans
        and substantially improve housing strategies;
            (2) streamlining regulatory requirements and shorten
        processes, reform zoning codes, increasing capacity to conduct
        housing inspections, or other initiatives that reduce barriers
        to housing supply elasticity and affordability;
            (3) developing and evaluating local or regional plans for
        community development to substantially improve community
        development strategies related to sustainability, fair housing,
        and location efficiency;
            (4) implementation and livable community investment grants;
        and
            (5) research and evaluation.
    (c) Grants.--
            (1) Planning grants.--The Secretary shall, under selection
        criteria determined by the Secretary, award grants under this
        paragraph on a competitive basis to eligible entities to assist
        planning activities, including administration of such
        activities, engagement with community stakeholders and housing
        practitioners, to--
                    (A) develop housing plans;
                    (B) substantially improve State or local housing
                strategies;
                    (C) develop new regulatory requirements and
                processes, reform zoning codes, increasing capacity to
                conduct housing inspections, or undertake other
                initiatives to reduce barriers to housing supply
                elasticity and affordability;
                    (D) develop local or regional plans for community
                development; and
                    (E) substantially improve community development
                strategies, including strategies to increase
                availability and access to affordable housing, to
                further access to public transportation or to advance
                other sustainable or location-efficient community
                development goals.
            (2) Implementation and livable community investment
        grants.--The Secretary shall award implementation grants under
        this paragraph on a competitive basis to eligible entities for
        the purpose of implementing and administering--
                    (A) completed housing strategies and housing plans
                and any planning to affirmatively further fair housing
                within the meaning of subsections (d) and (e) of
                section 808 of the Fair Housing Act (42 U.S.C. 608) and
                applicable regulations and for community investments
                that support the goals identified in such housing
                strategies or housing plans;
                    (B) new regulatory requirements and processes,
                reformed zoning codes, increased capacity to conduct
                housing inspections, or other initiatives to reduce
                barriers to housing supply elasticity and affordability
                that are consistent with a plan under subparagraph (A);
                and
                    (C) completed local or regional plans for community
                development and any planning to increase availability
                and access to affordable housing, access to public
                transportation and other sustainable or location-
                efficient community development goals.
    (d) Coordination With FTA Administrator.--To the extent
practicable, the Secretary shall coordinate with the Federal Transit
Administrator in carrying out this section.
    (e) Definitions.--For purposes of this section, the following
definitions apply:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State, insular area, metropolitan city, or
                urban county, as such terms are defined in section 102
                of the Housing and Community Development Act of 1974
                (42 U.S.C. 5302); or
                    (B) for purposes of grants under subsection (b)(1),
                a regional planning agency or consortia.
            (2) Housing plan; housing strategy.--
                    (A) Housing plan.--The term ``housing plan'' means
                a plan of an eligible entity to, with respect to the
                area within the jurisdiction of the eligible entity--
                            (i) match the creation of housing supply to
                        existing demand and projected demand growth in
                        the area, with attention to preventing
                        displacement of residents, reducing the
                        concentration of poverty, and meaningfully
                        reducing and not perpetuating housing
                        segregation on the basis of race, color,
                        religion, natural origin, sex, disability, or
                        familial status;
                            (ii) increase the affordability of housing
                        in the area, increase the accessibility of
                        housing in the area for people with
                        disabilities, including location-efficient
                        housing, and preserve or improve the quality of
                        housing in the area;
                            (iii) reduce barriers to housing
                        development in the area, with consideration for
                        location efficiency, affordability, and
                        accessibility; and
                            (iv) coordinate with the metropolitan
                        transportation plan of the area under the
                        jurisdiction of the eligible entity, or other
                        regional plan.
                    (B) Housing strategy.--The term ``housing
                strategy'' means the housing strategy required under
                section 105 of the Cranston-Gonzalez National
                Affordable Housing Act (42 U.S.C. 12705).
    (f) Costs to Grantees.--Up to 15 percent of a recipient's grant may
be used for administrative costs.
    (g) Rules of Construction.--
            (1) In general.--Except as otherwise provided by this
        section, amounts appropriated or otherwise made available under
        this section shall be subject to the community development
        block grant program requirements under subsection (a)(1).
            (2) Exceptions.--
                    (A) Housing construction.--Expenditures on new
                construction of housing shall be an eligible expense
                under this section.
                    (B) Buildings for general conduct of government.--
                Expenditures on building for the general conduct of
                government, other than the Federal Government, shall be
                eligible under this section when necessary and
                appropriate as a part of a natural hazard mitigation
                project.
    (h) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of subsection (a)(1) or regulation for
the administration of the amounts made available under this section
other than requirements related to fair housing, nondiscrimination,
labor standards, and the environment, upon a finding that the waiver or
alternative requirement is not inconsistent with the overall purposes
of such Act and that the waiver or alternative requirement is necessary
to facilitate the use of amounts made available under this section.
    (i) Implementation.--The Secretary shall have the authority to
issue such regulations notices, or other guidance, forms, instructions,
and publications to carry out the programs, projects, or activities
authorized under this section to ensure that such programs, projects,
or activities are completed in a timely and effective manner.

SEC. 106. REPEAL OF FAIRCLOTH AMENDMENT.

    Section 9(g) of the United States Housing Act of 1937 (42 U.S.C.
1437g(g)) is amended by striking paragraph (3) (relating to limitation
on new construction).

SEC. 107. ESTABLISHMENT OF HUD OFFICE OF COMMUNITY LAND USE AND ZONING.

    (a) In General.--Section 4 of the Department of Housing and Urban
Development Act (42 U.S.C. 3533) is amended by adding at the end the
following new subsection:
    ``(i) Office of Community Land Use and Zoning.--
            ``(2) Establishment.--There is established in the
        Department, in the Office of the Secretary, the Office of
        Community Land Use and Zoning.
            ``(3) Director.--There is established the position of
        Director of the Office of Community Land Use and Zoning. The
        Director shall be the head of the Office of Community Land Use
        and Zoning and shall be appointed by, and shall report to, the
        Secretary. Such position shall be a career-reserved position in
        the Senior Executive Service.
            ``(4) Mission.--The mission of the Office of Community Land
        Use and Zoning shall be to encourage communities to pursue land
        use policies that increase the availability and affordability
        of housing.
            ``(5) Functions.--The Director shall have primary
        responsibility within the Department for all activities and
        matters relating to land use and zoning reform, including the
        following:
                    ``(A) To collect, process, assemble, coordinate
                research, and disseminate information on State and
                local regulations and policies affecting the creation
                and maintenance of affordable housing.
                    ``(B) To provide technical assistance to State and
                local communities regarding State and local regulations
                and policies affecting the creation and maintenance of
                affordable housing.
                    ``(C) To maintain a Regulatory Barriers
                Clearinghouse and a database of land use policies
                across the United States.
                    ``(D) To administer the Unlocking Possibilities
                Program under section 105 of the Community Housing Act
                of 2026.
                    ``(E) To administer the Shared Equity Housing
                Resource Center established under section 203(b) of the
                Community Housing Act of 2026.
                    ``(F) To issue, not later than 2 years after the
                date of the enactment of this Act, guidance and best
                practices regarding State and local land use and zoning
                regulations and policies affecting the creation and
                maintenance of affordable housing, and to maintain and
                update such guidance and best practices regularly.''.
    (b) Transfer; Redesignation.--The Secretary of Housing and Urban
Development shall provide for--
            (1) the transfer of the administration of the Regulatory
        Barriers Clearinghouse of the Department, which as of the date
        of the enactment of this Act is the responsibility of the
        Office of Policy Development and Research, to the Director of
        the Office of Community Land Use and Zoning established under
        section 4(i) of the Department of Housing and Urban Development
        Act, as added by the amendment made by subsection (a) of this
        section; and
            (2) the redesignation of the Regulatory Barriers
        Clearinghouse as the Community Land Use and Zoning Research
        Center.
    (c) Authorization of Appropriations.--There is authorized to be
appropriated $2,000,000 for each of fiscal years 2027 through 2031 for
costs of personnel for and activities of the Office of Community Land
Use and Zoning.

          TITLE II--RENTAL SUPPORT AND PERPETUAL AFFORDABILITY

SEC. 201. HUD EVICTION PROTECTION GRANT PROGRAM.

    In addition to amounts otherwise made available, there is
appropriated to the Secretary of Housing and Urban Development for each
of fiscal years 2027 through 2036, out of any money in the Treasury not
otherwise appropriated, $10,000,000 for grants under the Eviction
Protection Grant Program of the Office of Policy Development and
Research.

SEC. 202. SHARED EQUITY HOUSING RESOURCES.

    (a) Funding.--In addition to amounts otherwise made available,
there is appropriated for fiscal year 2027 for payment to the
Neighborhood Reinvestment Corporation for use in neighborhood
reinvestment activities, as authorized by the Neighborhood Reinvestment
Corporation Act (42 U.S.C. 8101-8107), $12,000,000, to remain available
until September 30, 2029: Provided, That such amount shall be for the
promotion and development of shared equity housing models, including
for capital grants for NeighborWorks affiliates to acquire homes for
their shared equity portfolios.
    (b) Resource Center.--The Secretary of Housing and Urban
Development shall establish and maintain, under the Office of Community
Land Use and Zoning, a Shared Equity Housing Resource Center to provide
technical and legal assistance and resources to communities and the
general public regarding forming shared equity housing governance
structures, including affordable housing community land trusts. There
is authorized to be appropriated for each fiscal year such sums as may
be necessary to operate such Resource Center.

SEC. 203. HOMEOWNERSHIP ASSISTANCE.

    (a) Rural Homeownerhip.--
            (1) Appropriation.--In addition to amounts otherwise
        available, there is appropriated to the Secretary of
        Agriculture for each of fiscal years 2027 through 2036, out of
        any money in the Treasury not otherwise appropriated--
                    (A) $4,000,000,000, for gross obligations for the
                principal amount of direct loans as authorized by
                section 502 of the Housing Act of 1949 (42 U.S.C.
                1472); and
                    (B) $148,400,000 for the cost of direct loans
                authorized by such section 502, including the cost of
                modifying loans, as defined in section 502 of the
                Congressional Budget Act of 1974 (2 U.S.C. 661a).
            (2) Interest rate.--Notwithstanding any other provision of
        law, the annual interest rate payable on a direct loan
        authorized by section 502 of the Housing Act of 1949 (42 U.S.C.
        1472), as modified by payment assistance, may not be lower than
        1.0 percent.
    (b) Housing Choice Voucher Downpayment Program.--In addition to
amounts otherwise available, there is appropriated to the Secretary of
Housing and Urban Development for each of fiscal years 2027 through
2036, out of any money in the Treasury not otherwise appropriated,
$1,000,000,000, for providing downpayment assistance under section
8(y)(7) of the United States Housing Act of 1937 (42 U.S.C.
1437f(y)(7)).

SEC. 204. REPORT ON TAX ON SECONDARY HOMES.

    The Secretary of the Treasury shall, not later than 180 days after
the date of the enactment of this Act, submit to Congress a report on
the feasibility, economic consequences, and revenue effects of
establishing a tax on vacation homes and short-term rental homes.

SEC. 205. SHARED EQUITY HOUSING FUND.

    (a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Community Restoration and Revitalization
Fund established under subsection (b) for fiscal year 2027, out of any
money in the Treasury not otherwise appropriated, to remain available
until September 30, 2035, $500,000,000 for planning and implementation
grants under sections 101, 102, 103, 104(a) through 104(i), 104(l),
104(m), 105(a) through 105(g), 106(a)(2), 106(a)(4), 106(b) through
106(f), 109, 110, 111, 113, 115, 116, 120, and 122 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5301, 5302, 5303, 5304(a)-
(i), 5304(l), 5304(m), 5305(a)-(g), 5306(a)(2) 5306(a)(4), 5306(b)-(f),
5309, 5310, 5311, 5313, 5315, 5316, 5319, and 5321), awarded on a
competitive basis to eligible recipients, as defined under subsection
(d) of this section, to create, expand, and maintain community land
trusts and shared equity homeownership, including through the
acquisition, rehabilitation, and new construction of affordable,
accessible housing.
    (b) Establishment of Fund.--The Secretary of Housing and Urban
Development (in this section referred to as the ``Secretary'') shall
establish a Shared Equity Fund (in this section referred to as the
``Fund'') to award planning and implementation grants on a competitive
basis to eligible recipients for activities authorized under
subsections (a) through (g) of section 105 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305) and under this section for
community-led affordable housing and community development and economic
development projects.
    (c) Use of Funds.--An eligible recipient of a community land trust
grant awarded under subsection (a) shall use such grant for
establishing and operating a community land trust or shared equity
homeownership program; creation, subsidization, construction,
acquisition, rehabilitation, and preservation of housing in a community
land trust or shared equity homeownership program, and expanding the
capacity of the recipient to carry out the grant, provided that any
housing units created or maintained--
            (1) in the case of rental units, including units in mixed-
        use properties, are affordable and accessible to a household
        whose income does not exceed 80 percent of the median income
        for the area, as determined by the Secretary, for a period of
        not less than 30 years; and
            (2) in the case of homeownership units, are affordable and
        accessible to households whose incomes do not exceed 120
        percent of the median income for the area, as determined by the
        Secretary.
    (d) Eligible Recipient.--An eligible recipient of a planning or
implementation grant under subsection (a) shall be a local partnership
with the ability to administer the grant.
    (e) Waivers.--The Secretary may waive or specify alternative
requirements for sections 104(a) through (e), 104(h), 104(l), 104(m),
105(a) through (g), 106(a)(2), 106(a)(4), and 106(b) through (f) of the
Housing and Community Development Act of 1974 (42 U.S.C. 5304(a)
through (e), 5304(h), 5304(l), 5304(m), 5305(a) through (g),
5306(a)(2), 5306(a)(4), and 5306(b) through (f)), or associated
regulations for the administration of the amounts made available under
this section other than requirements related to fair housing,
nondiscrimination, labor standards, and the environment, upon a finding
that the waiver or alternative requirement is not inconsistent with the
overall purposes of such Act and that the waiver or alternative
requirement is necessary to expedite or facilitate the use of amounts
made available under this section.
    (f) Definitions.--For purposes of this section, the following
definitions shall apply:
            (1) Community land trust.--The term ``community land
        trust'' means a nonprofit organization or State or local
        governments or instrumentalities that--
                    (A) use a ground lease or deed covenant with an
                affordability period of at least 30 years or more to--
                            (i) make rental and homeownership units
                        affordable to households; and
                            (ii) stipulate a preemptive option to
                        purchase the affordable rentals or
                        homeownership units so that the affordability
                        of the units is preserved for successive
                        income-eligible households; and
                    (B) monitor properties to ensure affordability is
                preserved.
            (2) Land bank.--The term ``land bank'' means a government
        entity, agency, or program, or a special purpose nonprofit
        entity formed by one or more units of government in accordance
        with State or local land bank enabling law, that has been
        designated by one or more State or local governments to
        acquire, steward, and dispose of vacant, abandoned, or other
        problem properties in accordance with locally determined
        priorities and goals.
            (3) Shared equity homeownership program.--The term ``shared
        equity homeownership program'' means a program to facilitate
        affordable homeownership preservation through a resale
        restriction program administered by a community land trust,
        other nonprofit organization, or State or local government or
        instrumentalities and that utilizes a ground lease, deed
        restriction, subordinate loan, or similar mechanism that
        includes provisions ensuring that the program shall--
                    (A) maintain the home as affordable for subsequent
                very low-, low-, or moderate-income families for an
                affordability term of at least 30 years after
                recordation;
                    (B) apply a resale formula that limits the
                homeowner's proceeds upon resale; and
                    (C) provide the program administrator or such
                administrator's assignee a preemptive option to
                purchase the homeownership unit from the homeowner at
                resale.
    (g) Implementation.--The Secretary shall have the authority to
establish by notice any requirements that the Secretary determines are
necessary for timely and effective implementation of the program and
expenditure of funds appropriated, which requirements shall take effect
upon issuance.

SEC. 206. HISTORIC TAX CREDIT MODERNIZATION.

    Not later than 180 after the date of the enactment of this section,
the Secretary of the Interior, acting through the Director of the
National Park Service, shall revise the standards for rehabilitation
and accompanying guidelines used to determine if the rehabilitation of
a historic property qualifies for the Federal Historic Preservation Tax
Incentives program by providing owners of historic commercial, multi-
story properties with greater flexibility in incorporating residential
dwelling units on upper floors that are not generally accessible to the
public while retaining the historic characteristics of--
            (1) the exterior of the property; and
            (2) the areas of the property generally accessible to the
        public.

     TITLE III--LOW-COST FINANCING FOR AFFORDABLE HOUSING PROJECTS

SEC. 301. EXPANDING FEDERAL HOME LOAN BANK CONTRIBUTIONS TO AFFORDABLE
              HOUSING.

    Section 10(j)(5) of the Federal Home Loan Bank Act (12 U.S.C.
1430(j)(5)) is amended--
            (1) in subparagraph (C), by striking ``, and subsequent
        years'' and inserting ``through 2026''; and
            (2) by adding at the end the following:
                    ``(D) In 2027, and subsequent years, 20 percent of
                the preceding year's net income.''.

SEC. 302. CONTINUATION OF FHA-FFB AFFORDABLE RENTAL HOUSING FINANCING
              PARTNERSHIP.

    The Secretary of Housing and Urban Development shall continue to
carry out the FHA affordable rental housing financing partnership with
the Federal Financing Bank, under which such Bank provides financing
for loans insured under the FHA Multifamily Risk-Sharing Program under
section 542 of the Housing and Community Development Act of 1992 (12
U.S.C. 1707), and may enter into such new commitments under such
program during fiscal year 2027 and fiscal years thereafter, subject to
the overall limitations provided in this Act on new commitments to
guarantee loans insured under the General and Special Risk Insurance
Funds, as authorized by sections 238 and 519 of the National Housing
Act (12 U.S.C. 1715z-3 and 1735c).

SEC. 303. ALLOW GSES TO PURCHASE MEZZANINE DEBT.

    Not later than 1 year after the date of the enactment of this Act,
the Director of the Federal Housing Finance Agency shall issue a final
rule to permit the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation to purchase and securitize loans
made for the purpose of home construction.

                        TITLE IV--RURAL HOUSING

SEC. 401. PERMANENT ESTABLISHMENT OF HOUSING PRESERVATION AND
              REVITALIZATION PROGRAM; DECOUPLING RENTAL ASSISTANCE.

    Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is
amended by adding at the end the following new section:

``SEC. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.

    ``(a) Establishment.--The Secretary shall carry out a program under
this section for the preservation and revitalization of multifamily
rental housing projects financed under section 515 or both sections 514
and 516.
    ``(b) Notice of Maturing Loans.--
            ``(1) To owners.--On an annual basis, the Secretary shall
        provide written notice to each owner of a property financed
        under section 515 or both sections 514 and 516 that will mature
        within the 4-year period beginning upon the provision of the
        notice, setting forth the options and financial incentives that
        are available to facilitate the extension of the loan term or
        the option to decouple a rental assistance contract pursuant to
        subsection (f).
            ``(2) To tenants.--
                    ``(A) In general.--For each property financed under
                section 515 or both sections 514 and 516, not later
                than the date that is 2 years before the date that the
                loan will mature, the Secretary shall provide written
                notice to each household residing in the property that
                informs them of the date of the loan maturity, the
                possible actions that may happen with respect to the
                property upon that maturity, and how to protect their
                right to reside in federally assisted housing after
                that maturity.
                    ``(B) Language.--Notice under this paragraph shall
                be provided in plain English and shall be translated to
                other languages in the case of any property located in
                an area in which a significant number of residents
                speak such other languages.
    ``(c) Loan Restructuring.--Under the program under this section, in
any circumstance in which the Secretary proposes a restructuring to an
owner or an owner proposes a restructuring to the Secretary, the
Secretary may restructure such existing housing loans, as the Secretary
considers appropriate, for the purpose of ensuring that those projects
have sufficient resources to preserve the projects to provide safe and
affordable housing for low-income residents and farm laborers, by--
            ``(1) reducing or eliminating interest;
            ``(2) deferring loan payments;
            ``(3) subordinating, reducing, or reamortizing loan debt;
        and
            ``(4) providing other financial assistance, including
        advances, payments, and incentives (including the ability of
        owners to obtain reasonable returns on investment) required by
        the Secretary.
    ``(d) Renewal of Rental Assistance.--
            ``(1) In general.--When the Secretary proposes to
        restructure a loan or agrees to the proposal of an owner to
        restructure a loan pursuant to subsection (c), the Secretary
        shall offer to renew the rental assistance contract under
        section 521(a)(2) for a 20-year term that is subject to annual
        appropriations, provided that the owner agrees to bring the
        property up to or maintain the property at such standards that
        will ensure maintenance of the property as decent, safe, and
        sanitary housing for the full term of the rental assistance
        contract.
            ``(2) Additional rental assistance.--
                    ``(A) In general.--With respect to a project
                described in paragraph (1), if rental assistance is not
                available for all households in the project for which
                the loan is being restructured pursuant to subsection
                (c), the Secretary may extend such additional rental
                assistance to unassisted households at that project as
                is necessary to make the project safe and affordable to
                low-income households.
                    ``(B) Unavailable property.--In the event that a
                property is not available to provide additional rental
                assistance to households under subparagraph (A), the
                Secretary may offer a rural housing voucher to those
                households.
    ``(e) Restrictive Use Agreements.--
            ``(1) Requirement.--As part of the preservation and
        revitalization agreement for a project, the Secretary shall
        obtain a restrictive use agreement that obligates the owner to
        operate the project in accordance with this title.
            ``(2) Term.--
                    ``(A) No extension of rental assistance contract.--
                Except when the Secretary enters into a 20-year
                extension of the rental assistance contract for a
                project, the term of the restrictive use agreement for
                the project shall be consistent with the term of the
                restructured loan for the project.
                    ``(B) Extension of rental assistance contract.--If
                the Secretary enters into a 20-year extension of the
                rental assistance contract for a project, the term of
                the restrictive use agreement for the project shall be
                for 20 years.
                    ``(C) Termination.--The Secretary may terminate the
                20-year use restrictive use agreement for a project
                before the end of the term of the agreement if the 20-
                year rental assistance contract for the project with
                the owner is terminated at any time for reasons outside
                the control of the owner.
    ``(f) Decoupling of Rental Assistance.--
            ``(1) Renewal of rental assistance contract.--If the
        Secretary determines that a maturing loan for a project cannot
        reasonably be restructured in accordance with subsection (c)
        because it is not financially feasible or the owner does not
        agree with the proposed restructuring, and the project was
        operating with rental assistance under section 521, the
        Secretary may renew the rental assistance contract,
        notwithstanding any provision of section 521, for a term,
        subject to annual appropriations, of 20 years, provided that
        the owner enters into a restrictive use agreement.
            ``(2) Additional rental assistance.--With respect to a
        project described in paragraph (1), if rental assistance is not
        available for all households in the project, the Secretary may
        extend such additional rental assistance to unassisted
        households at that project as is necessary to make the project
        safe and affordable to low-income households.
            ``(3) Rents.--Any agreement to extend the term of the
        rental assistance contract under section 521 for a project
        shall obligate the owner to continue to maintain the project as
        decent, safe, and sanitary housing and to operate the
        development in accordance with this title, except that rents
        shall be based on the lesser of--
                    ``(A) the budget-based needs of the project; or
                    ``(B) the operating cost adjustment factor as a
                payment standard as provided under section 524 of the
                Multifamily Assisted Housing Reform and Affordability
                Act of 1997 (42 U.S.C. 1437 note).
            ``(4) Conditions for approval.--
                    ``(A) Plan.--Before the approval of a rental
                assistance contract authorized under this section, the
                Secretary shall require the owner to submit to the
                Secretary a plan that identifies financing sources and
                a timetable for renovations and improvements determined
                to be necessary by the Secretary to maintain and
                preserve the project.
                    ``(B) Automatic approval.--If a plan submitted
                under subparagraph (A) is not acted upon by the
                Secretary within 30 days of the submission, the rental
                assistance contract is automatically approved for not
                more than a 1-year period.
    ``(g) Multifamily Housing Transfer Technical Assistance.--Under the
program under this section, the Secretary may provide grants to
qualified nonprofit organizations and public housing agencies to
provide technical assistance, including financial and legal services,
to borrowers under loans under this title for multifamily housing to
facilitate the acquisition of such multifamily housing properties in
areas where the Secretary determines there is a risk of loss of
affordable housing.
    ``(h) Transfer of Rental Assistance.--After the loan or loans for a
rental project originally financed under section 515 or both sections
514 and 516 have matured or have been prepaid and the owner has chosen
not to restructure the loan pursuant to subsection (c)--
            ``(1) a tenant residing in the project shall have 18 months
        before loan maturation or prepayment to transfer the rental
        assistance assigned to the unit of the tenant to another rental
        project originally financed under section 515 or both sections
        514 and 516, and such tenants will have priority for admission
        over other applicants; and
            ``(2) the owner of the initial project may rent the
        previous unit of the tenant to a new tenant without income
        restrictions.
    ``(i) Administrative Expenses.--Of any amounts made available for
the program under this section for any fiscal year, the Secretary may
use not more than $1,000,000 for administrative expenses for carrying
out such program.
    ``(j) Authorization of Appropriations.--There is authorized to be
appropriated for the program under this section $200,000,000 for each
of fiscal years 2027 through 2031.
    ``(k) Rulemaking.--
            ``(1) In general.--Not later than 180 days after the date
        of enactment of this section, the Secretary shall--
                    ``(A) publish an advance notice of proposed
                rulemaking; and
                    ``(B) consult with appropriate stakeholders.
            ``(2) Interim final rule.--Not later than 1 year after the
        date of enactment of this section, the Secretary shall publish
        an interim final rule to carry out this section.''.

SEC. 402. INTERAGENCY TASK FORCE TO COORDINATE DELIVERY OF SUBSTANCE
              USE DISORDER TREATMENT AND AFFORDABLE HOUSING
              AVAILABILITY.

    (a) Establishment.--The Secretary of Housing and Urban Development
and the Secretary of Health and Human Services shall jointly establish
an interagency task force to develop and make recommendations the
Congress to better coordinate delivery of treatment for substance use
disorder in an affordable housing setting.
    (b) Members.--The Secretary of Housing and Urban Development and
the Secretary of Health and Human Services shall each appoint 5 members
to the task force.
    (c) Report.--Not later than the expiration of the 2-year period
beginning on the date of the enactment of this Act, the task force
shall submit a report to the Congress making recommendations on how to
better coordinate delivery of treatment for substance use disorder in
an affordable housing setting.
    (d) Termination.--The task force shall terminate 90 days after
submission of the report required under subsection (c).

SEC. 403. RURAL RENTAL HOUSING LOANS.

    There is appropriated to the Secretary of Agriculture $200,000,000
for each of the fiscal years 2027 through 2037 for the program
described under section 515(a) of the Housing Act of 1949 (42 U.S.C.
1485(a)).
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