Community Housing Act of 2026

(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:

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.

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.

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.”.

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”.

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.”.

(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.

(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— Amounts appropriated by this section shall remain available until September 30, 2036.

(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.

(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.

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).

(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.

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.

(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.

(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)).

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.

(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.

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.

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.”.

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).

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 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:

“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.”.

(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).

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)).