Bill · S. 3753· Senate(119-S-3753)
Preserving Homes and Communities Act of 2026
- Introduced
- 1/30/2026
- Last activity
- 1/30/2026 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S420)
- Sponsored by
- John Reed
- Cosponsors
- - 4 - 0
- Introduced
- In Committee
What this bill would do
The Preserving Homes and Communities Act of 2026 establishes strict requirements for the bulk sale of non-performing and re-performing single family mortgage loans. It mandates that FHA, Fannie Mae, and Freddie Mac prioritize sales to government entities and nonprofit organizations to promote affordable housing. Borrowers must receive specific written notices regarding loan sales and their available loss mitigation options. Purchasers of these loans are required to provide specific protections, such as loss mitigation and deferral programs, to eligible borrowers. The bill also creates a "First Look" program for eligible buyers to purchase foreclosed properties. Additionally, it implements rigorous data reporting and semiannual congressional reporting to ensure transparency and fair lending.
Yes· 3 of 10
Does this make housing cost less?+8
The bill mandates that a high percentage of foreclosed properties be sold or leased under affordable conditions or donated to nonprofits.
Would households on low incomes be better off under this?+7
The bill mandates rent caps and income limits for many properties to ensure they remain accessible to low-income earners.
Does this make what the government does easier for the public to see?+5
The bill requires semiannual reports to Congress and public disclosure of loan-level data and post-sale loss mitigation options.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Priority for Community Organizations: The bill establishes a system that gives priority to Federal, State, local, or Tribal governments and nonprofit organizations to help promote affordable housing and neighborhood stabilization (Section 2, subsection a, paragraph 2).
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Enhanced Borrower Protections: Purchasers must provide loss mitigation options and deferral programs that are at least as favorable as existing FHA guidelines, including the absence of certain fees (Section 2, subsection a, paragraph 5, sub-paragraphs A and B).
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Legal Protections Against Foreclosure: If a purchaser fails to follow established loss mitigation guidelines, that failure can be used as a defense to a judicial foreclosure or to stop a non-judicial foreclosure (Section 2, subsection a, paragraph 5, sub-paragraph D).
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Increased Housing Opportunities for Low-Income Renters: For properties acquired through foreclosure, 75 percent must be sold to owner-occupants, donated to non-profits/local governments, or leased to tenants with incomes not more than 100 percent of the area median income for at least 10 years (Section 2, subsection a, paragraph 5, sub-paragraph I).
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Affordable Homeownership Access: The "First Look" program allows homebuyers intending to occupy a property as a principal residence to have an exclusive right to purchase foreclosed properties at or below fair market value (Section 2, subsection a, and Section 2, subsection b, paragraph 1).
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Stability for Vacant Properties: Purchasers are required to maintain vacant and abandoned properties, including paying local property taxes, until the title is transferred or the property is sold (Section 2, subsection a, paragraph 5, sub-paragraph F).
Potential Negative Impacts for People
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Restrictions on Property Sale Methods: The bill prohibits the use of contract for deed, lease to own, or land installment contracts for selling purchased properties unless the buyer or tenant is a nonprofit organization (Section 2, subsection a, paragraph 5, sub-paragraph H).
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Strict Requirements for Property Disposal: If a home retention option is not possible, a high percentage (75 percent) of properties acquired through foreclosure must be subject to specific sale or lease constraints, such as being sold at fair market value to an owner-occupant or meeting specific income and rent requirements (Section 2, subsection a, paragraph 5, sub-paragraph I).
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Potential Burdens on Purchasers: Purchasers are required to provide specific loss mitigation, deferral programs, and data reporting, which may include costs related to complying with these requirements (Section 2, subsection a, paragraph 5; Section 2, subsection b, paragraph 3).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+7Good For African Americans+3Good For Middle Class Households+3Good For Young Adults+2
- Social Issues And Justice
- Improves Affordable Housing+8Improves Poverty Reduction+4Improves Racial Equity+3
- Governance And Ideology
- Improves Government Transparency+5
- Economy And Finance
- Improves Small Business Support+2
- Environment Energy And Infrastructure
- Improves Rural Development+1
- 1/30/2026
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S420)
- 4 Cosponsors added.
- Introduced in Senate
Jeff MerkleyDemocrat · Oregon
Charles SchumerDemocrat · New York
Tina SmithDemocrat · Minnesota
Ron WydenDemocrat · Oregon