HB400: HB400 Community Housing Options Increase Cost Efficiency (CHOICE) Act; enact

Georgia lawmakers cite rising construction costs, falling affordable rental supply, and increasing homelessness as reasons for this bill, known as the Community Housing Options Increase Cost Efficiency (CHOICE) Act. It creates a voluntary certification system run by the Department of Community Affairs for counties with at least 50,000 people, cities with at least 6,500 people, or jurisdictions with median household income above $115,000. Starting July 1, 2027, these 'qualified' local governments can apply to be certified as a 'workforce housing ready community,' 'workforce housing ready expert,' or 'workforce and home ownership leader' by adopting a set number of listed housing policies, such as allowing duplexes, accessory dwelling units, smaller lot sizes, or reduced parking requirements. Certified governments get priority when applying for grants and loans from the Department of Community Affairs, the Department of Natural Resources' recreational trails program, and the Georgia Environmental Finance Authority, and the highest-tier certified governments are exempt from matching funds requirements in the state's local road grant program. The law would take effect July 1, 2026.

• Creates a new certification system at the Department of Community Affairs for counties and cities that adopt specified pro-housing policies, effective for applications starting July 1, 2027.
• Defines three certification tiers (workforce housing ready community, workforce housing ready expert, workforce and home ownership leader) based on how many qualifying policies from four listed tiers a local government has adopted.
• Requires the Department of Natural Resources, the Department of Community Affairs, and the Georgia Environmental Finance Authority to give priority to certified local governments when awarding certain grants and loans.
• Exempts local governments certified as a 'workforce and home ownership leader' from matching fund requirements under the state's local maintenance and improvement road grant program (O.C.G.A. Section 32-5-27).
• Requires the Department of Community Affairs to publish annual population and median household income figures for every Georgia county and city to determine eligibility, starting January 1, 2027.
• Allows the Department of Community Affairs to revoke a certification if a local government stops meeting the required policy count or fails to reverify every five years.

Larger Georgia counties (50,000+ residents), larger cities (6,500+ residents), and higher-income jurisdictions that choose to seek certification; the Department of Community Affairs, Department of Natural Resources, and Georgia Environmental Finance Authority, which administer the priority system; and local governments competing for the same grants and loans without certification.

Local governments that loosen zoning and permitting rules, such as allowing duplexes, accessory dwelling units, or smaller lots, could gain a competitive edge in state grant and loan competitions and avoid road-grant matching fund requirements, potentially shaping how and where new housing gets built across Georgia.

• Section 2 lists legislative findings on Georgia's housing shortage, rising construction costs, and increased homelessness as the rationale for the Act.
• Section 3 adds O.C.G.A. Section 12-2-6.1 requiring the Department of Natural Resources to prioritize certified local governments in federal recreational trails program grants.
• Section 4 amends O.C.G.A. Section 32-5-27 to waive local matching fund requirements for 'workforce and home ownership leader' certified governments in the local maintenance and improvement grant program.
• Section 5 adds O.C.G.A. Section 50-8-8.1 requiring the Department of Community Affairs to prioritize certified governments in its own grant and loan programs.
• Section 6 adds a new Article 14 to Title 50 defining housing terms and creating the three-tier certification process, including required numbers of tier 1 through tier 4 policies for each tier.
• Section 6 also requires the department to publish population and median household income data annually starting January 1, 2027, to determine which jurisdictions qualify.
• Section 7 adds O.C.G.A. Section 50-23-5.1 requiring the Georgia Environmental Finance Authority to give certified governments priority for its grants and loans.
• Section 8 sets the effective date as July 1, 2026, while certification applications and eligibility determinations begin later, in 2027.

1. 2026-02-26House Committee Favorably Reported By Substitute (House)
2. 2025-02-13House Second Readers (House)
3. 2025-02-12House First Readers (House)
4. 2025-02-11House Hopper (House)

• Spencer Frye (D, HD-122)Primary sponsor
• Phil Olaleye (D, HD-059)
• Dale Washburn (R, HD-144)
• Eric Bell (D, HD-075)
• Shea Roberts (D, HD-052)
• Gabriel Sanchez (D, HD-042)

• affordable housing
• zoning reform
• local government grants
• housing policy
• accessory dwelling units