Lasting affordability homeownership grant pilot program

(a) In general The Secretary of Housing and Urban Development (in this section referred to as the Secretary) shall establish a pilot program to provide grants to eligible entities. (b) Use of amounts Each eligible entity that receives amounts under this section shall use such amounts to— (1) purchase vacant land to develop housing and sell that housing to homebuyers or members of a limited equity cooperative; and (2) purchase existing properties or predeveloped land on which properties will be developed that will be sold to homebuyers or members of a limited equity cooperative. (c) 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 term. (d) Requirements (1) Vacant land In the case of vacant land purchased by an eligible entity under this section, the housing shall be built and marketed for sale not later than 3 years after the date of the purchase, which period may be extended at the discretion of the Secretary for extenuating circumstances, such as delays in the development process, provided that the Secretary makes public a list of localities where such extenuating circumstances are occurring. (2) Existing land or properties In the case of existing properties or predeveloped land purchased by an eligible entity under this section, the homes shall be ready for sale to homebuyers not later than 3 years after the date of the purchase, which period may be extended at the discretion of the Secretary for extenuating circumstances. (3) All properties Each home developed with amounts provided under this section shall be sold to households— (A) with an income that is less than or equal to— (i) 80 percent of the area median income; or (ii) 120 percent of the area median income, if the home is located in a rural area; (B) with ground leases, deed restrictions, covenants, or other mechanisms to ensure permanent affordability; and (C) according to a resale formula determined by the eligible entity. (e) Reporting (1) Eligible entity reports Not later than 2 years after receiving a grant under this section, and biennially for 6 years thereafter, an eligible entity shall submit to the Secretary a streamlined report that includes— (A) as applicable, the number of acres purchased; (B) as applicable, the number of units purchased; (C) as applicable, the number of buildings and units developed; (D) as applicable, the number of buildings and units renovated; (E) a description of the ground leases, deed restrictions, covenants, or other mechanisms used to ensure permanent affordability; (F) a description of the resale formula used; (G) the number of households served; (H) the average size of units; (I) the median purchase price; (J) to the extent possible, the average amount of the down payment paid by households; (K) the average tenure of residents; (L) to the extent possible, the average credit score of purchasers; (M) the average delinquency and foreclosure rate; and (N) the average annual resident fees. (2) Report to Congress Not later than 90 days after the conclusion of each fiscal year in which assistance under this section is made available, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on this section that contains, with aggregates, averages, and summaries, as appropriate, information provided by eligible entities under paragraph (1). (f) Authorization of appropriations (1) In general There is authorized to be appropriated to the Secretary $100,000,000 for each of fiscal years 2027 through 2031 to carry out this section. (2) Technical assistance Not more than 10 percent of amounts appropriated under paragraph (1) may be used to provide technical assistance to eligible entities that receive a grant under this section.