HouseH.R. 9461119th Congress
Working Families Home Construction Act of 2026
Full Text
Official text as published. Use Ctrl+F / Cmd+F to search within the document.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9461 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 9461
To permit the Federal Home Loan Mortgage Corporation and the Federal
National Mortgage Association to purchase and securitize certain
residential construction loans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 25, 2026
Mr. Fitzgerald introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To permit the Federal Home Loan Mortgage Corporation and the Federal
National Mortgage Association to purchase and securitize certain
residential construction loans.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Working Families Home Construction
Act of 2026''.
SEC. 2. PURCHASE OF QUALIFYING CONSTRUCTION LOANS BY FANNIE MAE AND
FREDDIE MAC.
(a) In General.--Notwithstanding any other provision of law, the
Director of the Federal Housing Finance Agency (hereafter referred to
as the ``Director'') shall permit the enterprises to purchase and
securitize qualifying construction loans, as described in this section.
(b) Qualifying Construction Loan.--A qualifying loan shall have
each of the following characteristics:
(1) The loan shall be made by a depository institution, a
credit union, a State housing finance agency, or any other
entity as determined by the Director.
(2) The originating institution for the loan shall verify
and document the financial viability, capacity to complete, and
support from the local community as defined in subsection
(d)(4), for the purpose of providing that information to an
enterprise.
(3) The loan shall have an interest rate established by the
Director, which takes into account--
(A) affordability for a family described in
paragraph (9); and
(B) safety and soundness with respect to the
operating costs and expected losses related to
purchasing qualifying construction loans.
(4) The loan shall be made to a builder, homebuilder, or
developer.
(5) The loan shall be for a construction project that will
result in the building of 1 or more owner-occupied dwelling
units.
(6) The recipient of the loan shall contribute not less
than 10 percent of the capital required to complete the
construction project (including the value of the land on which
the project is located) to be undertaken by the recipient using
such loan.
(7) The loan shall be--
(A) not more than $100,000 for each dwelling unit
to be constructed as part of the construction project
provided that the amounts described in this paragraph
represent the maximum amount of supplemental or gap
financing eligible for purchase and securitization by
an enterprise under this Act and may be layered with
other construction financing sources, including
commercial construction loans, State or local
financing, and developer equity contributions and shall
not be construed to require that a qualifying
construction loan serve as the sole or primary source
of financing for any construction project; and
(B) not more than $2,400,000 in total for any
single construction project.
(8) The loan may be used for--
(A) acquiring land;
(B) professional services, including engineering
services, land use planning services, surveying,
environmental due diligence;
(C) developing infrastructure that will serve such
eligible construction project, including roads, sewers,
sidewalks, grading, water lines, stormwater management,
lighting, and street landscaping and signage;
(D) construction of dwelling units;
(E) direct developer incentives; or
(F) municipal fees and permits.
(9) Each dwelling unit built as part of a construction
project financed with a loan shall be sold to a family whose
income is between 90 percent and 130 percent of the area median
income in the area where the dwelling unit is located.
(10) When a dwelling unit built as part of a construction
project financed with a loan is sold, the terms of the sale
shall require the purchaser to reside in the dwelling unit for
not less than 1 year, and shall require developers to include a
recorded, restrictive covenant to that effect.
(c) Availability of Amounts.--
(1) Freddie mac.--Section 1337 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4567(a)(1)(B)) is amended in subsection (a)(1)(B)--
(A) in clause (i)--
(i) by striking ``65'' and inserting
``53''; and
(ii) by striking ``and'' at the end;
(B) in clause (ii), by striking ``35'' and
inserting ``25''; and
(C) by adding at the end the following:
``(iii) 22 percent of such amounts for the
purpose of purchasing and securitizing
qualifying construction loans under the Working
Families Home Construction Act of 2026; and''.
(2) Fannie mae.--Section 1337 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4567(a)(2)(B)) is amended in subsection (a)(2)(B)--
(A) in clause (i)--
(i) by striking ``65'' and inserting
``53''; and
(ii) by striking ``and'' at the end;
(B) in clause (ii)--
(i) by striking ``35'' and inserting
``25''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(iii) 22 percent of such amounts for the
purpose of purchasing and securitizing
qualifying construction loans under the Working
Families Home Construction Act of 2026; and''.
(d) Definitions.--In this section:
(1) Credit union.--The term ``credit union'' has the
meaning given the term ``insured credit union'' in section 101
of the Federal Credit Union Act (12 U.S.C. 1752).
(2) Depository institution.--The term ``depository
institution'' has the meaning given the term in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
(3) Enterprise.--The term ``enterprise'' means--
(A) the Federal Home Loan Mortgage Corporation; or
(B) the Federal National Mortgage Association.
(4) Support from the local community.--The term ``support
from the local community'' means formal authorization or
endorsement for the proposed construction project from the
relevant local governmental authority, which shall be deemed
satisfied by any one of the following:
(A) a valid zoning approval issued by the relevant
local government authority for the proposed
construction project;
(B) a building permit issued by the relevant local
government authority for the proposed construction
project;
(C) a formal resolution or letter of support from a
local elected official with jurisdiction over the area
in which the project is located; or
(D) such other documentation as the Director
determines demonstrates formal local governmental
authorization for the proposed construction project.
<all>