HB 1597: Georgia Dream Expansion and Housing Affordability Act of 2026; enact

Georgia currently offers home buyers down payment assistance of $10,000 to $12,500 through programs like the Georgia Dream Loan Program. This bill says that amount no longer covers the gap between wages and rising home prices, especially in metro areas where median prices exceed $400,000. The bill creates a new article in state law directing the Department of Community Affairs to offer eligible buyers a $30,000 down payment loan and a separate $15,000 closing cost loan, both at zero interest and not requiring monthly payments. Ten percent of the loan balance would be forgiven each year the buyer stays in the home, with any remaining balance wiped out after ten years. The department must also raise income eligibility to 140 percent of the area median income in high-cost counties, and must set aside at least 20 percent of program funding for first-generation homebuyers and public service workers like teachers, police, firefighters, EMTs, and healthcare workers.

• Increases down payment assistance loans through Georgia's home buying programs to $30,000, up from the current $10,000 to $12,500 range.
• Adds a separate $15,000 closing cost assistance loan for loan origination fees, inspections, and other standard closing costs.
• Requires these loans to carry zero interest and no monthly payments, with 10 percent of the balance forgiven each year until fully forgiven after ten years of living in the home.
• Raises income eligibility limits so buyers earning up to 140 percent of the area median income in high-cost counties can qualify.
• Requires at least 20 percent of annual program funding to be reserved for first-generation homebuyers and qualified public service professionals.
• Defines 'first-generation homebuyer' and 'qualified public service professional' for purposes of the new program rules.

Prospective home buyers using Department of Community Affairs programs like the Georgia Dream Loan Program, especially first-generation buyers and public service workers such as teachers, law enforcement officers, firefighters, EMTs, and healthcare workers, as well as the Department of Community Affairs, which administers the funds.

Buyers who qualify would get access to much larger upfront loans that do not accrue interest and disappear entirely after ten years of staying in the home, potentially making homeownership reachable in high-cost metro areas where current assistance falls short of covering typical down payments and closing costs.

• Section 2 states legislative findings that current down payment assistance of $10,000 to $12,500 is insufficient given median home prices over $400,000 in metro areas.
• New Code Section 50-8-310 defines 'first-generation homebuyer' and 'qualified public service professional' for the new program.
• New Code Section 50-8-311 requires the department to provide a $30,000 down payment loan and a $15,000 closing cost loan to program applicants.
• New Code Section 50-8-312(a) sets the loans as zero-interest and non-amortizing, forgiven 10 percent annually until fully forgiven after ten years.
• New Code Section 50-8-312(b) requires raising income eligibility limits to 140 percent of area median income in high-cost counties.
• New Code Section 50-8-312(c) reserves at least 20 percent of annual program funding for first-generation homebuyers and qualified public service professionals.

1. 2026-03-27House Second Readers (House)
2. 2026-03-25House First Readers (House)
3. 2026-03-23House Hopper (House)

• Derrick Jackson (D, HD-068)Primary sponsor
• Billy Mitchell (D, HD-088)
• Teddy Reese (D, HD-140)
• Jasmine Clark (D, HD-108)
• Debra Bazemore (D, HD-069)

• housing affordability
• down payment assistance
• Georgia Dream program
• homeownership
• first-time homebuyers