HB 1177: Development authorities; certain affordable housing uses of property qualify as projects; provide

Georgia's development authorities currently can undertake various kinds of projects, defined under O.C.G.A. § 36-62-2, to spur trade, commerce, industry, or jobs. Housing has not been one of the listed project types. HB1177 adds a new category letting these authorities acquire, build, improve, lease, or finance single-family, two-family, or multifamily housing when doing so supports local trade, commerce, industry, or job growth. The bill limits this new power: an authority can only pursue such a housing project if it determines the homes will mainly be occupied by households earning no more than 175 percent of the federal poverty level, and if a firm or corporation has shown a real need for workforce housing in the county or city that created the authority. The bill also states legislative findings that a shortage of affordable housing is holding back economic development in parts of the state.

• Adds a new category of eligible "projects" to Georgia's development authority law (O.C.G.A. § 36-62-2) covering single-family, two-family, and multifamily housing.
• Requires that any such housing project be occupied primarily by households earning no more than 175 percent of the federal poverty level.
• Requires a firm or corporation to demonstrate a genuine need for workforce housing in the local jurisdiction before an authority can pursue the project.
• Declares that a shortage of affordable housing is hindering trade, commerce, industry, and job growth in parts of Georgia.
• Repeals any existing state laws that conflict with these changes.

Local development authorities across Georgia, which gain new authority to fund housing; county and municipal governments that activate these authorities; businesses seeking workforce housing for employees; and lower-income households who could occupy the resulting housing.

If passed, development authorities in Georgia counties and cities could use their existing financing tools, such as bonds, to help build or improve housing aimed at lower-income workers, potentially expanding the supply of affordable housing tied to local job growth, provided a documented workforce housing need exists.

• Section 1 sets out legislative findings that a shortage of housing affordable to below-median-income households is hurting economic development in Georgia.
• Section 2 amends O.C.G.A. § 36-62-2(6) by adding subparagraph (O), defining affordable housing acquisition, construction, improvement, leasing, or financing as an eligible authority project.
• Section 2 conditions this new project type on primarily serving households earning no more than 175 percent of the federal poverty level.
• Section 2 also requires a demonstrated need for workforce housing from a firm or corporation in the county or municipality that activated the authority.
• Section 3 repeals any conflicting laws.

1. 2026-03-03House Committee Favorably Reported By Substitute (House)
2. 2026-02-05House Second Readers (House)
3. 2026-02-04House First Readers (House)
4. 2026-02-03House Hopper (House)

• Al Williams (D, HD-168)Primary sponsor
• Mary Oliver (D, HD-084)
• Spencer Frye (D, HD-122)
• Ron Stephens (R, HD-164)
• Buddy DeLoach (R, HD-167)
• Stan Gunter (R, HD-008)

• affordable housing
• development authorities
• workforce housing
• economic development
• local government finance