Georgia CommonsHouse · Introduced · 2025-2026 Regular Session
HB 1177: Development authorities; certain affordable housing uses of property qualify as projects; provide
Last action March 3, 2026 · House Committee Favorably Reported By Substitute
HB1177 would let Georgia development authorities treat certain affordable housing projects as an authority-eligible "project," allowing them to help finance homes for lower-income workers.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
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.
What the bill does
- 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.
Who it affects
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.
Why it matters
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.
Key provisions
- 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.
From the bill
“no such project as defined by this subparagraph shall be undertaken by an authority unless the authority determines that the occupancy or residential use of such property shall be primarily by households that have an annual gross household income that does not exceed 175 percent of the federal poverty level”
“a firm or corporation has demonstrated the reasonable need for workforce housing in the county or municipal corporation which activated such authority”
Discussed in meetings (5)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Governmental Affairs Committee, February 23, 2026
From 1:33:46 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1177 would let development authorities choose to support workforce housing through acquisition, construction, improvement, leasing or financing, initially for households earning no more than 80% of county median household income. The sponsor argued housing shortages impede hiring and rural growth. Another member said the proposal would clarify powers that some authorities already have and described 80% as a common affordability benchmark. Members questioned unelected authorities’ construction powers, bond approval and taxpayer risk. The sponsor said authorities generally use financing that passes through to developers, with developers responsible for repayment, and hire qualified builders rather than build directly. Asked about later income increases, the sponsor said there was no annual recertification and opposed penalizing buyers’ success. The committee adopted an amendment raising the income limit to 100%, after its proposer argued new-home costs also exclude households at that level. A second proposed amendment would require a recorded agreement preserving income restrictions for at least 30 years. Members questioned its effect on homeowners and its placement in the law. Before resolving that amendment or voting on passage, the committee voted to table the bill. The chair encouraged revisions and possible reconsideration Wednesday.
House Governmental Affairs Committee, March 2, 2026
From 0:27:44 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor presented a substitute and, in response to a committee member’s clarification, confirmed that it changed the income threshold from 80% of area median income to 175% of the federal poverty level. Another committee member said the bill would let local development authorities choose to finance single-family homes, creating more housing options, particularly in rural areas. No witnesses spoke. The committee approved the substitute by voice vote, with no opposition heard.
House Rules Committee, March 6, 2026
From 0:45:16 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2140
Summary by Georgia Commons: The committee placed HB 1177 on the day’s supplemental floor calendar under modified structure after confirming a motion and second, with no objection stated. No substantive discussion occurred.
Status timeline
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Al Williams (D, HD-168)
- Mary Margaret Oliver (D, HD-84)
- Spencer Frye (D, HD-122)
- Ron Stephens (R, HD-164)
- Buddy DeLoach (R, HD-167)
- Stan Gunter (R, HD-8)
Topics
- affordable housing
- development authorities
- workforce housing
- economic development
- local government finance