Sec. 105. Shared equity homeownership initiative
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In this section: The term eligible entity means— a participating jurisdiction; and an entity certified as a community development financial institution by the Community Development Financial Institutions Fund established under section 104(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4703(a) ). The term eligible household means a household described in subsection (e). The term participating jurisdiction has the meaning given the term in section 92.2 of title 24, Code of Federal Regulations, or any successor regulation.
The term shared equity home means a dwelling unit serving an eligible household that utilizes a ground lease, deed restriction, subordinate loan, or similar legal mechanism that includes provisions stating that— the dwelling unit is intended to be kept affordable for subsequent eligible households; the affordability term is not less than 60 years after recordation; a resale formula applies that limits the proceeds of the homeowner upon resale; and the shared equity homeownership program, its agent, or its assignee has a preemptive option to purchase the dwelling unit from the homeowner at resale.
The term shared equity homeownership program means a program that— provides access to shared equity homes for eligible households; and is administered by community land trusts, other nonprofit organizations, or State or local governments or instrumentalities. The term subsidy to cover the affordability gap means the subsidy amount needed to make a dwelling unit affordable at a targeted area median income level in a targeted market, such as a census tract, neighborhood, county, city, or metropolitan statistical area, that— accounts for the number of bedrooms in a dwelling unit and the area median income adjusted for family size; and shall be not be less than 20 percent of the median sales price in the targeted market.
The Secretary shall provide grants to eligible entities to establish and expand shared equity homeownership programs and shared equity homes, including through partnerships with nonprofit entities, community land trusts, or State or local governments or instrumentalities. The Secretary may award 3-year grants under this section to eligible entities to provide grants to nonprofit entities, community land trusts, or State or local governments or instrumentalities to develop shared equity homeownership programs or community land trusts or to plan and build capacity related to carrying out grant activities under this section.
The Secretary may award grants under this section to eligible entities to expand the number of shared equity homes in existing shared equity homeownership programs, which may include— grants for acquisition and rehabilitation or new construction to create shared equity homes and includes subsidy to cover the affordability gap; and grants to implement a buyer-initiated program, where eligible households identify homes in the market and bring them into the shared equity homeownership program, which may include subsidy to cover the affordability gap and funds necessary for rehabilitation or repair of the property.
The amount of grants provided under paragraph
(1)in a fiscal year shall be limited to not more than 25 percent of the amount appropriated in the fiscal year under subsection (h). An eligible entity receiving a grant under (c)(2) may use the funds— to provide a developer with a subsidy to cover the affordability gap, which funds may be used to acquire properties and conduct rehabilitation or to construct new homes before the property is converted to shared equity homeownership; for acquisition, rehabilitation, and development expenses that are not covered by a subsidy provided under paragraph (1), including a developer fee; for capitalization of repair and replacement reserves, which funds may be used for repair and replacement expenses between resales to repair or improve a property so that a subsequent eligible households is not financially vulnerable due to deferred maintenance; to provide initial stewardship funds to support the operations of the shared equity homeownership program; and for the cost of administering the shared equity homeownership program, such as identifying and qualifying eligible households. Shared equity homeownership programs receiving funds under this section may serve households with an income under 120 percent of the area median income, as adjusted for household size, based upon the needs of the targeted market. The Secretary shall establish a dedicated shared equity housing professional technical assistance hub entity to educate and engage with local partners to share best practices and otherwise facilitate the shared equity homeownership model. The Secretary shall establish a data collection hub to which all eligible entities receiving a grant under this section shall report on an annual basis— the number of shared equity homes created; the number of households served; eligible household demographic characteristics; and any other relevant demographic information required at the discretion of the Secretary. There is authorized to be appropriated to carry out this section $1,000,000,000 for each of fiscal years 2021 through 2030. An amount equal to 20 percent of the funds appropriated under paragraph
(1)in a fiscal year shall be set aside and transferred to the Restorative Housing Justice Fund established under section 113(h).
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Sec. 105
Shared equity homeownership initiative
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