Lasting Home Affordability Act of 2024

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.

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.

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.

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.

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.

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).

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.

The Secretary may issues rules to carry out this section.

There is authorized to be appropriated to the Secretary, $100,000,000 for fiscal year 2025 to carry out this section.

In this section:

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.

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.

The term Secretary means the Secretary of the Treasury.