Sponsors (11)
The bill increases local access, pricing transparency, and oversight in the sale of foreclosed properties to favor community purchasers, while risking slower disposals, higher carrying and compliance costs for taxpayers, legal uncertainty from potential sale reversals, and heightened liability for employees.
Local governments, nonprofits, and intended owner-occupants get an exclusive 180-day right to purchase foreclosed homes before institutional investors, increasing chances for local ownership and community control of housing stock.
Eligible buyers can purchase properties at fair market value set by an independent appraisal or a standardized public valuation model, increasing pricing transparency and reducing discretionary discounts to investors.
Quarterly publication of sales data and the pricing methodology improves public oversight of property dispositions and enables scrutiny of whether properties are being sold fairly.
Restricting sales to institutional investors for 180 days may slow disposals or reduce sale prices, increasing carrying and maintenance costs that could be borne by taxpayers and delay property remediation.
The requirement to reverse completed sales 'if practicable' creates legal uncertainty and heightens the risk of costly contract disputes and litigation involving purchasers, agencies, and homeowners.
Large civil penalties on employees (tied to at least $100,000 or the sale price) expose federal employees and covered-entity staff to significant litigation and personnel risk, potentially deterring decision-making and increasing administrative costs.
Based on analysis of 2 sections of legislative text.
Requires certain federal housing entities to give qualified buyers a 180-day exclusive first-look to buy eligible 1–4 unit properties, with appraisal-based pricing, public listings, reporting, and enforcement.
Introduced January 7, 2026 by Pat Harrigan · Last progress January 7, 2026
Gives certain federal housing entities (FHA, FHFA, Fannie Mae, Freddie Mac, and USDA) a required 180-day exclusive “first look” period to sell eligible 1–4 unit properties to qualified buyers (intended owner-occupants, 501(c)(3) nonprofits, local governments, and community land trusts). Requires appraisal- or model-based fair-market pricing, public listings restricted to qualified buyers during the period, quarterly public reporting, inspector general compliance reviews, and HUD enforcement including civil penalties and possible reversal of sales; implementing rules and buyer verification must be issued within 180 days and the law takes effect 180 days after enactment.