Sec. 106. Shared Equity Housing Fund
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In addition to amounts otherwise available, there is appropriated to the Community Restoration and Revitalization Fund established under subsection
(b)for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031, $500,000,000 for planning and implementation grants under sections 101, 102, 103, 104(a) through 104(i), 104(l), 104(m), 105(a) through 105(g), 106(a)(2), 106(a)(4), 106(b) through 106(f), 109, 110, 111, 113, 115, 116, 120, and 122 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 , 5302, 5303, 5304(a)–(i), 5304(l), 5304(m), 5305(a)–(g), 5306(a)(2) 5306(a)(4), 5306(b)–(f), 5309, 5310, 5311, 5313, 5315, 5316, 5319, and 5321), awarded on a competitive basis to eligible recipients, as defined under subsection
(d)of this section, to create, expand, and maintain community land trusts and shared equity homeownership, including through the acquisition, rehabilitation, and new construction of affordable, accessible housing. The Secretary of Housing and Urban Development (in this section referred to as the Secretary ) shall establish a Shared Equity Fund (in this section referred to as the Fund ) to award planning and implementation grants on a competitive basis to eligible recipients for activities authorized under subsections
(a)through
(g)of section 105 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5305 ) and under this section for community-led affordable housing and community development and economic development projects. An eligible recipient of a community land trust grant awarded under subsection
(a)shall use such grant for establishing and operating a community land trust or shared equity homeownership program; creation, subsidization, construction, acquisition, rehabilitation, and preservation of housing in a community land trust or shared equity homeownership program, and expanding the capacity of the recipient to carry out the grant, provided that any housing units created or maintained— in the case of rental units, including units in mixed-use properties, are affordable and accessible to a household whose income does not exceed 80 percent of the median income for the area, as determined by the Secretary, for a period of not less than 30 years; and in the case of homeownership units, are affordable and accessible to households whose incomes do not exceed 120 percent of the median income for the area, as determined by the Secretary. An eligible recipient of a planning or implementation grant under subsection
(a)shall be a local partnership with the ability to administer the grant. The Secretary may waive or specify alternative requirements for sections 104(a) through (e), 104(h), 104(l), 104(m), 105(a) through (g), 106(a)(2), 106(a)(4), and 106(b) through
(f)of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5304(a) through (e), 5304(h), 5304(l), 5304(m), 5305(a) through (g), 5306(a)(2), 5306(a)(4), and 5306(b) through (f)), or associated regulations for the administration of the amounts made available under this section other than requirements related to fair housing, nondiscrimination, labor standards, and the environment, upon a finding that the waiver or alternative requirement is not inconsistent with the overall purposes of such Act and that the waiver or alternative requirement is necessary to expedite or facilitate the use of amounts made available under this section. For purposes of this section, the following definitions shall apply: The term community land trust means a nonprofit organization or State or local governments or instrumentalities that— use a ground lease or deed covenant with an affordability period of at least 30 years or more to— make rental and homeownership units affordable to households; and stipulate a preemptive option to purchase the affordable rentals or homeownership units so that the affordability of the units is preserved for successive income-eligible households; and monitor properties to ensure affordability is preserved. The term land bank means a government entity, agency, or program, or a special purpose nonprofit entity formed by one or more units of government in accordance with State or local land bank enabling law, that has been designated by one or more State or local governments to acquire, steward, and dispose of vacant, abandoned, or other problem properties in accordance with locally-determined priorities and goals. The term shared equity homeownership program means a program to facilitate affordable homeownership preservation through a resale restriction program administered by a community land trust, other nonprofit organization, or State or local government or instrumentalities and that utilizes a ground lease, deed restriction, subordinate loan, or similar mechanism that includes provisions ensuring that the program shall— maintain the home as affordable for subsequent very low-, low-, or moderate-income families for an affordability term of at least 30 years after recordation; apply a resale formula that limits the homeowner’s proceeds upon resale; and provide the program administrator or such administrator’s assignee a preemptive option to purchase the homeownership unit from the homeowner at resale. The Secretary shall have the authority to establish by notice any requirements that the Secretary determines are necessary for timely and effective implementation of the program and expenditure of funds appropriated, which requirements shall take effect upon issuance.
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