,,ii #aaith ,,congress #b;d ,session ,s4 #dbfb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bf1 #bjbf,ms4 ,blunt ,rochester introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to promote shared equity models of homeownership1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,permanent ,housing ,affordability ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,community development financial institution ,the term community development financial institution has the meaning given the term in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7#b7 ,community land trust ,the term community land trust means a nonprofit entity1 a ,state1 a unit of local government1 or an instrumentality of a ,state or unit of local government-- 7,a7 that is not managed by1 or an affiliate of1 a for-profit organization2 7,b7 the primary purpose of which is acquiring1 developing1 or holding land to provide housing that is permanently affordable to low- and moderate-income persons2 7,c7 that monitors properties to ensure affordability is preserved2 7,d7 that provides housing that is permanently affordable to low- and moderate-income persons using a ground lease1 deed covenant1 or other similar legally enforceable measure1 determined acceptable by the ,secretary1 that-- 7i7 keeps the housing affordable to low- and moderate-income persons for not less than-- 7,i7 #ii years2 or 7,,ii7 the greatest minimum affordability period permitted by applicable ,state law1 if that law restricts minimum affordability periods to a number of years that is less than #ii2 and 7ii7 enables low- and moderate-income persons to rent or purchase the housing for homeownership2 and 7,e7 that maintains preemptive purchase options to purchase the property1 if such purchase would allow the housing to remain affordable to low- and moderate-income persons4 7#c7 ,eligible entity ,the term eligible entity means a unit of local government1 an instrumentality of a ,state or unit of local government1 or a nonprofit organization1 including a community land trust1 that manages a shared equity homeownership model program4 7#d7 ,eligible grantee ,the term eligible grantee means-- 7,a7 any agency of a ,state2 7,b7 any authority chartered by a ,state to help meet affordable housing needs of the residents of the ,state2 and 7,c7 a community development financial institution that is certified by the ,secretary of the ,treasury4 7#e7 ,qualified homebuyer ,the term qualified homebuyer means a homebuyer with a household income that is not more than #abj percent of the area median income4 7#f7 ,resale formula ,the term resale formula means a permissible method of determining fair return and resale price under section #ib4bed7;a77#e77;i77,a7 of title #bd1 ,code of ,federal ,regulations1 as in effect on ,march #bh1 #bjbe4 7#g7 ,shared equity homeownership model ,the term shared equity homeownership model means a model of resale-restricted1 owner-occupied housing the primary purpose of which is to create and preserve a supply of owner-occupied units affordable to low and moderate income households that-- 7,a7 carry terms of affordability that are not less than-- 7i7 #ii years2 or 7ii7 the greatest minimum affordability period permitted by applicable ,state law1 if that law restricts minimum affordability periods to a number of years that is less than #ii2 and 7,b7 restrict the resale value of properties in the program according to a resale formula described in a ground lease1 deed restriction1 or similar legal mechanism4 #c4 ,lasting ,home ,affordability ,fund 7a7 ,in general ,not later than #ij days after the date of enactment of this ,act1 the ,secretary of the ,treasury 7in this section referred to as the ,secretary7 shall establish a program to provide grants to eligible grantees to use for the purpose of providing low-interest construction loans to eligible entities4 7b7 ,application by eligible grantees ,to be eligible to receive amounts under this section1 an eligible grantee shall submit an application at such time and in such manner as the ,secretary may reasonably require1 including a detailed description of-- 7#a7 how the eligible grantee intends to use any amounts provided under this section2 and 7#b7 the qualifications such eligible grantee has that will allow such eligible grantee to successfully administer a grant under this section4 7c7 ,use of amounts by eligible grantees 7#a7 ,in general ,any eligible grantee that receives amounts under this section shall use such amounts and related proceeds to establish a revolving fund and provide low-interest construction loans to #a or more eligible entities1 which amounts may be awarded to eligible entities on a rolling basis4 7#b7 ,loan requirements 7,a7 ,in general ,loans provided by an eligible grantee to an eligible entity using amounts provided under this section shall-- 7i7 have an interest rate of not more than #c percent2 and 7ii7 have an origination fee of not more than #a percent of the amount of the loan4 7,b7 ,liquidity requirements ,an eligible grantee may not require1 as a condition of receiving a loan under this section1 that an eligible entity has more than #aj percent of the amount to be loaned in liquid assets at the time of the loan4 7#c7 ,limitation ,an eligible entity that receives amounts under this section may not be the same entity as the eligible grantee that provides those amounts4 7#d7 ,priority ,an eligible grantee shall prioritize loans to eligible entities that plan to use amounts loaned under this section to construct or rehabilitate properties-- 7,a7 located in areas with high cost burden1 as determined by the ,secretary1 individuals at risk of displacement due to rising housing costs1 or redlining2 or 7,b7 that are required to be affordable as described in subsection 7e7 for terms that are more than #ii years4 7d7 ,use of amounts by eligible entities ,an eligible entity may use amounts loaned by an eligible grantee for costs associated with the construction or rehabilitation of housing intended to be sold to a homebuyer1 a member of a limited equity cooperative1 or a community land trust and used as a primary residence1 including materials1 labor 7including contractor fees71 land development 7including demolition and grading71 permit and developer fees1 insurance costs1 on-site infrastructure costs 7including the installation of roads1 water1 electrical1 sewer1 storm drainage1 and sidewalks71 and predevelopment 7including architectural costs and engineering costs74 7e7 ,affordability requirement ,an eligible entity that uses amounts loaned under this section to construct or rehabilitate a property-- 7#a7 may only sell or facilitate the sale of such property to qualified homebuyers2 and 7#b7 shall ensure any subsequent sales are to qualified homebuyers at a below-market value that is determined by a resale formula described in a ground lease1 deed restriction1 or other similar mechanism4 7f7 ,areas of service ,the ,secretary shall seek to provide grants to eligible grantees that will fund activities in geographically diverse areas1 including areas of persistent poverty1 underserved areas1 and rural areas4 7g7 ,rulemaking ,the ,secretary may issue rules to carry out this section4 7h7 ,reporting 7#a7 ,grantee reports ,the ,secretary shall require each grantee receiving grant amounts in any given year under this section to submit a report1 for such year and each year that loans are made using grant funds1 to the ,secretary that includes-- 7,a7 the number of qualifying loans made2 7,b7 the organizations receiving loans2 7,c7 the number of outstanding loans on ,september #cjth of the report year2 7,d7 the percentage of organizations belonging to each type of eligible grantee as described in subparagraphs 7,a7 through 7,c7 of section #b7d72 7,e7 the projected number of units constructed or rehabilitated by each loan2 7,f7 the average interest rate on qualifying loans2 7,g7 the average origination fee on qualifying loans2 7,h7 the median purchase price of the homes constructed or rehabilitated by each loan compared to the median market rate price in the area2 7,i7 the zip codes where the homes constructed or rehabilitated by each loan are located2 7,j7 the area median income level of households assisted2 7,k7 the percentage and number of loans made for the purpose of construction2 7,l7 the percentage and number of loans make for the purpose of rehabilitation2 7,m7 a description of any mechanism used to ensure permanent affordability by each grantee1 such as ground leases1 deed restrictions1 covenants1 or other mechanisms2 7,n7 the resale formula used by each eligible entity that receives a loan from the grantee2 and 7,o7 where applicable1 for each loan made1 the percentage of total project cost expected to be covered by the loan4 7#b7 ,report to ,congress ,not later than #ij days after the conclusion of each fiscal year in which assistance under this section is made available1 the ,secretary shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on amounts provided under this section that contains1 with aggregates1 averages1 and summaries1 as appropriate1 information provided by grantees under paragraph 7#a74 7i7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary #ajj1jjj1jjj for fiscal year #bjbg to carry out this section1 to remain available until expended4 #d4 ,lasting affordability homeownership grant pilot program 7a7 ,in general ,the ,secretary of ,housing and ,urban ,development 7in this section referred to as the ,secretary7 shall establish a pilot program to provide grants to eligible entities4 7b7 ,use of amounts ,each eligible entity that receives amounts under this section shall use such amounts to-- 7#a7 purchase vacant land to develop housing and sell that housing to homebuyers or members of a limited equity cooperative2 and 7#b7 purchase existing properties or predeveloped land on which properties will be developed that will be sold to homebuyers or members of a limited equity cooperative4 7c7 ,priority ,the ,secretary shall prioritize the award of grants to eligible entities that will maintain affordability for the homes sold by the eligible entity for the longest term4 7d7 ,requirements 7#a7 ,vacant land ,in the case of vacant land purchased by an eligible entity under this section1 the housing shall be built and marketed for sale not later than #c years after the date of the purchase1 which period may be extended at the discretion of the ,secretary for extenuating circumstances1 such as delays in the development process1 provided that the ,secretary makes public a list of localities where such extenuating circumstances are occurring4 7#b7 ,existing land or properties ,in the case of existing properties or predeveloped land purchased by an eligible entity under this section1 the homes shall be ready for sale to homebuyers not later than #c years after the date of the purchase1 which period may be extended at the discretion of the ,secretary for extenuating circumstances4 7#c7 ,all properties ,each home developed with amounts provided under this section shall be sold to households-- 7,a7 with an income that is less than or equal to-- 7i7 #hj percent of the area median income2 or 7ii7 #abj percent of the area median income1 if the home is located in a rural area2 7,b7 with ground leases1 deed restrictions1 covenants1 or other mechanisms to ensure permanent affordability2 and 7,c7 according to a resale formula determined by the eligible entity4 7e7 ,reporting 7#a7 ,eligible entity reports ,not later than #b years after receiving a grant under this section1 and biennially for #f years thereafter1 an eligible entity shall submit to the ,secretary a streamlined report that includes-- 7,a7 as applicable1 the number of acres purchased2 7,b7 as applicable1 the number of units purchased2 7,c7 as applicable1 the number of buildings and units developed2 7,d7 as applicable1 the number of buildings and units renovated2 7,e7 a description of the ground leases1 deed restrictions1 covenants1 or other mechanisms used to ensure permanent affordability2 7,f7 a description of the resale formula used2 7,g7 the number of households served2 7,h7 the average size of units2 7,i7 the median purchase price2 7,j7 to the extent possible1 the average amount of the down payment paid by households2 7,k7 the average tenure of residents2 7,l7 to the extent possible1 the average credit score of purchasers2 7,m7 the average delinquency and foreclosure rate2 and 7,n7 the average annual resident fees4 7#b7 ,report to ,congress ,not later than #ij days after the conclusion of each fiscal year in which assistance under this section is made available1 the ,secretary shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on this section that contains1 with aggregates1 averages1 and summaries1 as appropriate1 information provided by eligible entities under paragraph 7#a74 7f7 ,authorization of appropriations 7#a7 ,in general ,there is authorized to be appropriated to the ,secretary #ajj1jjj1jjj for each of fiscal years #bjbg through #bjca to carry out this section4 7#b7 ,technical assistance ,not more than #aj percent of amounts appropriated under paragraph 7#a7 may be used to provide technical assistance to eligible entities that receive a grant under this section4 #e4 ,shared equity housing research and awareness programs 7a7 ,housing research 7#a7 ,in general ,the ,secretary of ,housing and ,urban ,development 7in this section referred to as the ,secretary71 acting through the ,office of ,policy ,development and ,research1 shall establish a program that conducts1 supports1 and disseminates research about best practices for community land trusts and other shared equity homeownership models1 including best practices regarding ground leases1 deed restrictions1 or other legal mechanisms for preserving long-term affordability4 7#b7 ,awards ,for ,states1 local governments1 ,tribal governments1 and entities managing shared equity homeownership models1 including nonprofit organizations1 the ,secretary shall provide funding to organizations representing nonprofit shared equity model interests to create or sustain shared equity homeownership models through technical assistance and capacity building4 7#c7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary such sums as may be necessary to carry out this subsection4 7b7 ,public awareness 7#a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall conduct a public awareness campaign to educate the public and the financial sector about the benefits and responsibilities of shared equity homeownership models1 including community land trusts1 which may include-- 7,a7 creating a web page to publicize shared equity homeownership models2 7,b7 disseminating information to housing counseling agencies or other entities to provide information to potential homebuyers2 7,c7 providing information to lenders about the shared equity homeownership model1 including standard ground leases and appraisal guidance developed by the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation2 and 7,d7 to the extent possible1 work with ,states1 local governments1 ,tribal governments1 and entities managing shared equity homeownership models1 including nonprofit organizations1 to advance public awareness4 7#b7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary #c1jjj1jjj for each of fiscal years #bjbg through #bjbi to carry out this subsection4 7c7 ,outreach 7#a7 ,in general ,the ,secretary1 in consultation and coordination with other appropriate entities1 including the ,federal ,housing ,finance ,agency1 shall carry out an education and outreach campaign to inform and educate consumers1 home builders1 residential lenders1 and other real estate professionals on the availability1 benefits1 and advantages of community land trusts and other shared equity homeownership models4 7#b7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary such sums as may be necessary to carry out this subsection4 7d7 ,report ,not later than #ij days after the conclusion of each fiscal year in which assistance under this section is made available1 the ,secretary shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on the shared equity housing research and awareness programs described in this section that includes1 for the period covered by the report-- 7#a7 a description of public awareness and public outreach campaigns conducted by the ,secretary2 7#b7 a description of consultation and coordination efforts with the ,federal ,housing ,finance ,agency1 including a description of ,federal ,housing ,finance ,agency activities to improve mortgage lender education and outreach that resulted from consultation and coordination efforts2 7#c7 a description of the research conducted on best practices for community land trusts and other shared equity homeownership models2 and 7#d7 the number and location of entities that received technical assistance and capacity building on community land trusts and other shared equity homeownership models4 #f4 ,surplus land 7a7 ,in general ,section #eej of title #dj1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the subsection heading1 by striking ,definition and inserting ,definitions2 and 7,b7 by striking section1 the term and inserting section-- 7#a7 the term shared equity homeownership model has the meaning given the term in section #b of the ,permanent ,housing ,affordability ,act2 and 2 7#b7 in subsection 7b77#b77;,d71 by inserting and for property transferred under subsection 7i7 to a community land trust or other shared equity homeownership model after families2 and 7#c7 by adding at the end the following3 7i7 ,property for community land trust or other shared equity homeownership model 7#a7 ,conveyance ,the ,administrator may convey to a community land trust or other shared equity homeownership model the right1 title1 and interest of the ,government in and to any surplus real property that the ,secretary of ,housing and ,urban ,development determines is suitable for a community land trust or other shared equity homeownership model4 7#b7 ,deed of conveyance ,the deed of conveyance of any surplus real property disposed of under this subsection-- 7,a7 shall provide that all of the property be used and maintained for purposes of a community land trust or other shared equity homeownership model in perpetuity1 and that if the property ceases to be used or maintained in a community land trust or other shared equity homeownership model1 all or any portion of the property shall1 in its then existing condition1 at the option of the ,government1 revert to the ,government2 and 7,b7 may contain additional terms1 reservations1 restrictions1 and conditions the ,administrator determines are necessary to safeguard the interests of the ,government4 7#c7 ,fixing value 7,a7 ,in general ,in fixing the sale or lease value of property disposed of under paragraph 7#b71 the ,secretary of ,housing and ,urban ,development shall take into consideration and discount the value for any benefit which has accrued or may accrue to the ,government from the use of the property by the community land trust or other shared equity homeownership model4 7,b7 ,amount of discount ,the amount of the discount under subparagraph 7,a7 is #ge percent of the market value of the property1 except that the ,secretary of ,housing and ,urban ,development may discount by a greater percentage if the ,secretary1 in consultation with the ,administrator1 determines that a higher percentage is justified4 4 7b7 ,report ,not later than #ij days after the conclusion of each fiscal year in which assistance under section #eej7;i7 of title #dj1 ,united ,states ,code1 as added by subsection 7a71 is made available1 the ,secretary of ,housing and ,urban ,development shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on surplus land that includes-- 7#a7 the number of surplus real properties conveyed by the ,federal ,government for the purpose of affordable housing1 including such properties that were conveyed to a community land trust or other shared equity homeownership model2 and 7#b7 the average discounted value of real property conveyed by the ,federal ,government for the purpose of affordable housing1 including such real property that was conveyed to a community land trust or other shared equity homeownership model4