Housing Supply Fund Act of 2026

Key Points

• This bill creates a new Housing Supply Fund inside the existing CDFI Fund at the Treasury Department. It provides competitive grants to certified community development financial institutions, nonprofit housing organizations, and public housing agencies to build, fix up, and preserve affordable homes.
• The program targets low-income renters and homeowners earning up to 120% of area median income. It specifically aims to help people who face big barriers to getting a mortgage, including those seeking smaller loans that many banks won't offer.
• The bill appropriates $500 million per year for fiscal years 2026 through 2030, totaling $2.5 billion. Up to 5% can go toward administrative costs, and grant recipients must commit the funds within 4 years or the money gets recaptured for future rounds.
• The money can be used in creative ways, including converting old commercial buildings into housing, building near transit, and preserving resident-owned manufactured housing communities. The Treasury must distribute funds to geographically diverse areas covering urban, suburban, rural, Tribal, and territorial communities.
• The entire $2.5 billion is designated as an emergency spending requirement, meaning it bypasses normal budget rules that would require offsetting cuts or revenue increases elsewhere. This makes the spending easier to pass but adds directly to the national debt.