The bill would create a Housing Supply Fund inside the CDFI Fund. The Fund would give competitive grants to certified community development financial institutions, nonprofits that focus on affordable housing, or consortia of those groups. Grant money could be used to support development, preservation, rehabilitation, financing, or purchase of affordable housing for low-, very low-, and extremely low-income renters and for homeowners with incomes up to 120 percent of area median income. The Fund may also support related economic development and community service facilities.
Allowed uses listed in the bill include loan loss reserves, capitalizing revolving loan funds, capitalizing affordable housing or mortgage funds, risk-sharing loans, and loan guarantees. The bill also allows work such as converting commercial properties to affordable housing, acquiring land or property for preservation or development (including resident-owned manufactured home communities), and mixed-use or transit-oriented projects. The Secretary of the Treasury would run the Fund through the CDFI Fund and may issue regulations. All assistance from the Fund is treated as Federal financial assistance for civil rights law purposes.
If enacted, more grant money would be available to CDFIs and housing nonprofits to finance affordable housing projects. The money would usually flow to organizations, not directly to individual renters or buyers. Projects that could get support include new affordable buildings, repairs and preservation of existing affordable homes, mortgage programs for buyers with barriers to credit, and community service facilities tied to housing. The bill aims to reach urban, suburban, rural, Tribal, and territorial areas.
The bill authorizes $500,000,000 each fiscal year for 2026 through 2030 to carry out the Fund. Up to 5 percent of the total may be used for administrative expenses of the Secretary. Grant amounts must generally be committed for use within 4 years of the grant; the Secretary may waive or change that deadline. The bill designates these amounts as an emergency requirement.
The bill’s text states the Fund’s purpose is to increase investment in and expand options for affordable housing and to support related economic development and community service facilities. Supporters would point to the Fund’s tools—grants, loan loss reserves, revolving funds, mortgage funds, and guarantees—as ways to increase affordable housing activity.
No publicly available information.