[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [H.R. 7325 Introduced in House (IH)] <DOC> 118th CONGRESS 2d Session H. R. 7325 To address the housing crisis through bold investments to increase and preserve the national affordable housing supply, paths to homeownership, and perpetual affordability through shared equity housing and community land trust models, investigating landlord price fixing, and providing relief for rural renters, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 13, 2024 Ms. Balint (for herself, Mr. Gomez, Mr. Davis of Illinois, Mr. Garcia of Illinois, Mr. Goldman of New York, Mr. Johnson of Georgia, Mr. Jackson of Illinois, Ms. Lee of Pennsylvania, Ms. Moore of Wisconsin, Mr. Mullin, Ms. Norton, Ms. Ocasio-Cortez, Ms. Omar, Mrs. Ramirez, Ms. Sanchez, Ms. Schakowsky, Mr. Smith of Washington, Ms. Stansbury, Mr. Thanedar, Ms. Tlaib, Ms. Tokuda, Ms. Underwood, Mrs. Watson Coleman, Ms. Porter, and Mr. Pocan) 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 bold investments to increase and preserve the national affordable housing supply, paths to homeownership, and perpetual affordability through shared equity housing and community land trust models, investigating landlord price fixing, and providing relief for rural renters, and for other purposes. 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 2024''. (b) Table of Contents.--The table of contents for this Act 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. Shared Equity Housing Fund. Sec. 107. Repeal of Faircloth amendment. Sec. 108. Establishment of HUD Office of Community Land Use and Zoning. Sec. 109. Continuation of FHA-FFB affordable rental housing financing partnership. Sec. 110. Increase of minimum State allocations under housing programs. TITLE II--RENTAL SUPPORT AND PERPETUAL AFFORDABILITY Sec. 201. Permanent emergency rental assistance program. Sec. 202. HUD Eviction Protection Grant Program. Sec. 203. Shared equity housing resources. Sec. 204. Homeownership assistance. Sec. 205. Report on tax on secondary homes. Sec. 206. National housing information database. TITLE III--RURAL HOUSING Sec. 301. Permanent establishment of housing preservation and revitalization program; decoupling rental assistance. Sec. 302. Interagency Task Force to coordinate delivery of substance use disorder treatment and affordable housing availability. 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) average rent in the United States has increased 24 percent between 2020 and 2023; (3) more than half of low- and moderate-income borrowers now spend between 30 and 50 percent of their income on mortgage payments; (4) rental housing subsidized by the Rural Housing Service (RHS) of the Department of Agriculture is often the only affordable option in rural communities; (5) more than half of extremely low-income rural renters experience housing insecurity; (6) the Housing Trust Fund (HTF) provides a dedicated, permanent source of funding for affordable housing; (7) the HTF is an important source of gap financing for State housing finance agencies, used along with tax credits and the HOME Investment Partnership program (HOME); (8) 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; (9) the HTF and CMF are funded through contributions from the Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac; (10) the GSEs are required to annually set aside an amount equal to 4.2 basis points for each dollar of the unpaid principal balance of their total new business purchases to support the affordable housing programs; (11) in 2023, receipts from the GSE set aside dropped significantly due to shifting market conditions; (12) the HOME program is used, in combination with housing tax credits, by State housing finance agencies to build affordable rental housing; (13) the HOME program is also the primary Federal resource for the construction of affordable family homes; (14) 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; (15) 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; (16) President Biden has proposed the Unlocking Possibilities program, a competitive grant program to help States and localities eliminate needless barriers to affordable housing production, including permitting for manufactured housing communities; (17) almost 2 million people in the United States live in public housing; (18) 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''; (19) community land trust or shared equity programs are crucial for ensuring perpetual housing affordability; (20) community land trusts or related shared equity housing programs have established legal frameworks to keep homes affordable for more than 30 years; (21) there are over 300 community land trust entities in the United States encompassing 43,931 housing units; (22) 44 percent of all shared equity dwelling units are rental units; (23) a reported 45 percent of shared equity homeowners are people of color; (24) many shared equity housing organizations include a commitment to racial and ethnic diversity in their organizational and operational practices; (25) the Emergency Rental Assistance Program (ERAP), established during the COVID-19 pandemic, provided rental and utility assistance to more than 5 million households; (26) these funds protected renters and landlords and have demonstrated the need for a permanent emergency rental assistance program; (27) analysis shows that daily eviction rates fell dramatically due to the ERAP; (28) State and local public developers 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; and (29) State and Federal antitrust enforcers would benefit from greater visibility into use of real estate and property management software to stem anti-competitive price fixing in the rental housing markets. 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 2024 through 2033.''. 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 2024 through 2033.''. 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 2024, out of any money in the Treasury not otherwise appropriated-- (1) $9,925,000,000, to remain available until September 30, 2028, 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, 2028, 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, 2033, 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, 2033, 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 2023 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 2023 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 2024, 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, 2033. (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 108(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 pla