Permanent Housing Affordability Act

Low-Interest Funding for Housing: The bill provides for low-interest construction loans with interest rates not exceeding 3 percent and origination fees capped at 1 percent, which can lower the cost of building affordable homes (Section 3(c)(2)).

Targeted Assistance for At-Risk Areas: Loan priority is given to projects in areas with high cost burdens, redlining, or where people face displacement due to rising costs (Section 3(c)(4)).

Increased Homeownership for Low-Income Households: The bill ensures that homes developed through the pilot program are sold to households earning 80 percent or less of the area median income, or 120 percent in rural areas (Section 4(d)(3)).

Discounted Land for Affordable Housing: The government can convey surplus real property to community land trusts at a discount of at least 75 percent of the market value (Section 6(a)(3)(B)).

Public Education and Support: The bill funds public awareness campaigns and technical assistance to help potential homebuyers and the financial sector understand shared equity models (Section 5(b) and 5(c)).

Resale Value Restrictions: Homeowners in these programs must sell their properties at a below-market value determined by a resale formula, which limits the equity they can build (Section 3(e)(2) and Section 2(7)(B)).

Strict Income Limits: Only "qualified homebuyers" with a household income not more than 120 percent of the area median income can purchase these properties, excluding those who earn above this threshold (Section 2(5)).

Long-Term Affordability Requirements: Properties are subject to affordability terms of at least 99 years, or the maximum permitted by state law, which places long-term restrictions on the property (Section 2(7)(A)).