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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9356 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9356
To require the Secretary of the Treasury to establish a pilot program
to provide grants to eligible grantees to use for the purpose of
providing low-interest construction loans to eligible entities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 13, 2024
Ms. Schrier introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Secretary of the Treasury to establish a pilot program
to provide grants to eligible grantees to use for the purpose of
providing low-interest construction loans to eligible entities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Lasting Home Affordability Act of
2024''.
SEC. 2. LASTING HOME AFFORDABILITY FUND.
(a) In General.--The Secretary of the Treasury shall, not later
than 90 days year after the date of the enactment of this section,
establish a program to provide grants to eligible grantees to use for
the purpose of providing low-interest construction loans to eligible
entities.
(b) Application by Eligible Grantees.--To be eligible to receive
amounts under this section, an eligible grantee shall submit an
application at such time and in such manner as the Secretary may
reasonably require, including a detailed description of--
(1) how the eligible grantee intends to use any amounts
provided under this section; and
(2) the qualifications such eligible grantee has that will
allow such eligible grantee to successfully administer a grant
under this section.
(c) Use of Amounts by Eligible Grantees.--
(1) In general.--Any eligible grantee that receives amounts
under this section shall use such amounts to establish a
revolving fund and provide low-interest construction loans to 1
or more eligible entities.
(2) Loan requirements.--
(A) In general.--Loans provided by an eligible
grantee to an eligible entity using amounts provided
under this section shall--
(i) have an interest rate of not more than
3 percent; and
(ii) have an origination fee of not more
than 1 percent of the amount of the loan.
(B) Liquidity requirements.--An eligible grantee
may not require an eligible entity to have more than 10
percent of any amount to be loaned as a prerequiste for
providing such loan.
(d) Use of Eligible 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 purchased and used as a primary residence, including materials,
labor (including contractor fees), land development (including
demolition and grading), permit and developer fees, on-site
infrastructure costs (including the installation of roads, water,
electrical, sewer, storm drainage, and sidewalks); and predevelopment
(including architectural costs and engineering costs).
(e) Affordability Requirement.--An eligible entity that uses
amounts loaned under this section to construct or rehabilitate a
property may only sell such property to a household who's income is
less than or equal to 120 percent of the area median income and shall
ensure that if the property is subsequently sold during the 30-year
period after the date on which the eligible entity sold the property
that the property is only sold to households who's income is less than
or equal to 120 percent of the area median income.
(f) Rulemaking.--The Secretary may issues rules to carry out this
section.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary, $100,000,000 for fiscal year 2025 to
carry out this section.
(h) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means a
State, a unit of local government, an instrumentality of a
State or unit of local government, or a nonprofit organization,
including a community land trust, that uses ground leases, deed
restrictions, and other similar mechanisms when selling a
property owned by the eligible entity to--
(A) maintain the property as affordable for
households who's income does not exceed 120 percent of
area median income;
(B) apply a resale formula that limits the buyers
proceeds upon resale to allow for a fair and equitable
return while ensuring the home is affordable for
subsequent qualified homebuyers; and
(C) provides the State, unit of local government,
instrumentality of such State or unit of local
government, or nonprofit organization a preemptive
option to purchase the property from the buyer if the
buyer chooses to sell the property in the future.
(2) Eligible grantee.--The term ``eligible grantee''
means--
(A) any agency of a State; or
(B) any authority chartered by a State to help meet
affordable housing needs of the residents of the State.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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