Sponsors (3)
The bill expands lower‑income access to homeownership by creating tax-favored shared-appreciation financing, but it reduces federal revenue and may leave uneven geographic access and structural constraints that limit how widely the new financing and tax benefit are used.
Homebuyers with income at or below 140% of area median income in eligible census tracts can exclude shared-appreciation payments above the loan principal from taxable income when they sell or refinance, lowering their future tax burden and making homeownership more affordable for lower‑income buyers.
Buyers gain access to shared-appreciation mortgage (SAM) financing that can cover up to 49% of the purchase price without monthly payments, expanding alternative financing options that may increase homeownership opportunities for people who cannot afford traditional down payments or monthly payment levels.
Treating gain on disposition of qualifying SAM instruments as excluded for tax purposes simplifies the tax treatment for lenders and investors who hold these interests, reducing compliance uncertainty for financial institutions and facilitating private investment in SAM products.
The 140% AMI eligibility cutoff and census-tract limitations create complexity and uneven geographic access, meaning many middle-income buyers and buyers in certain areas may be excluded or face inconsistent availability of the benefit.
Excluding SAM proceeds from gross income will reduce federal tax receipts, producing a small but real decline in revenue that could slightly increase deficits or reduce funding available for other federal programs.
Requiring SAMs to be subordinate second liens tied to a qualified first lien and meeting other structural rules restricts which lenders or loan products qualify, which may limit the availability and uptake of SAMs despite the tax incentive.
Based on analysis of 2 sections of legislative text.
Excludes proceeds and certain gains from qualifying shared-appreciation mortgages from federal gross income, subject to defined limits and borrower-income eligibility.
Excludes certain proceeds from shared-appreciation mortgage (SAM) contracts from taxpayers' gross income and excludes gains on disposition of assets made up of such mortgages, subject to eligibility rules and definitions. It defines a SAM, limits the mortgage share to no more than 49% of the purchase price, requires the SAM be a subordinate (second) lien with no scheduled payments other than the shared-appreciation payment, and restricts borrower eligibility to those with income at or below 140% of the area median income for the census tract in the year the loan is issued. The tax treatment applies to amounts received after December 31, 2025.
Introduced March 26, 2026 by Blake D. Moore · Last progress March 26, 2026