American Housing and Economic Mobility Act of 2025

Local Housing Innovation Grants: These grants allow eligible entities to reform land use restrictions and remove barriers to building affordable units, which can lower the cost of producing housing (Sec. 101).

Down Payment Assistance: First-time, first-generation homebuyers can receive grants of up to 3.5 percent of the appraised value of a property to help them purchase a principal residence (Sec. 201).

Neighborhood Appraisal Gap Support: Formula grants can provide funds to help borrowers pay down arrears on loans, pay off second mortgages, or fund necessary home repairs to keep their homes (Sec. 202).

Real Estate-Owned Property Sales: The bill requires that at least 75 percent of single-family residential properties conveyed after foreclosure be sold directly to owner-occupants or community partners who develop them for owner-occupants (Sec. 103).

Non-Performing Loan Protections: Borrowers facing financial distress are provided with specific loss mitigation options and written notices before loans are sold (Sec. 103).

Veteran Descendant Assistance: Certain direct descendants of deceased veterans who served between 1944 and 1968 can access housing loans if they are first-time, first-generation homebuyers (Sec. 206).

Expanded Fair Housing Protections: The bill expands the FairHOUSING Act to include protections against discrimination based on gender identity, sexual orientation, marital status, source of income, and veteran status (Section 301).

Improved Housing Outcomes: Public housing agencies will be required to conduct location analyses to reduce disparities and help families, including those with children or disabilities, move to higher-opportunity neighborhoods (Section 302).

Increased Accessibility: Housing constructed or assisted with funds from this Act will require twice the number of accessible dwelling units compared to previous requirements (Section 501).

Higher Valuation for Farm Property: The valuation limit for certain farm and certain real property is increased from $750,000 to $3,000,000 (Section 410).

Increased Exclusion for Conservation Easements: The exclusion limitation for land subject to conservation easements is increased from $500,000 to $2,000,000 (Section 411).

Landlord-Tenant Restrictions: The bill includes provisions that could affect landlords, such as prohibiting evictions except for just cause and providing tenants with a cause of action to sue for illegal evictions (Sec. 101).

Mortgage Sale Requirements: While intended to protect borrowers, the strict requirements and mandatory loss mitigation options for purchasers of non-performing loans could place specific burdens on those buying such mortgages (Sec. 103).

Down Payment Repayment: Individuals receiving down payment assistance may be required to repay a proportional amount of the grant if they do not occupy the property as a principal residence for at least five years (Sec. 201).

Increased Estate Tax Burden: The bill increases estate tax rates, reduces the basic exclusion amount to $3,500,000, and adds a 10 percent surtax on estates exceeding $1,000,000,000 (Section 402).

New Surcharges on High Income: A new tax is imposed on estates and trusts based on modified adjusted gross income exceeding certain thresholds (Section 409).

Changes to Grantor Retained Annuity Trusts: To qualify for certain benefits, these trusts must now meet a minimum 10-year term and specific value requirements (Section 403).

Limitations on Valuation Discounts: The bill limits the ability to use valuation discounts for transfers of nonbusiness assets in entities controlled by a family (Section 408).

New Gift Tax Rules: The bill changes rules regarding annual gifts, including a specific $10,000 limit per donee for certain types of transfers (Section 406).