HB 400: Community Housing Options Increase Cost Efficiency (CHOICE) Act; enact

Georgia lawmakers say the state faces a housing shortage driven by construction costs, labor shortages, and outdated local rules. This bill creates a voluntary certification system run by the Department of Community Affairs for 'qualified' counties (population 50,000+) and cities (population 6,500+, or any local government with median household income over $115,000). Local governments can adopt a defined menu of tiered zoning and permitting reforms, things like allowing duplexes, accessory dwelling units, smaller lot sizes, reduced parking minimums, and streamlined permitting, to earn one of three certification levels: workforce housing ready community, workforce housing ready expert, or workforce and home ownership leader. Certified governments get priority when applying for grants from the Department of Natural Resources' recreational trails program, Department of Community Affairs grants and loans, and Georgia Environmental Finance Authority grants and loans. The highest-tier governments are also exempted from local matching-fund requirements for road maintenance grants. Certifications must be renewed with the department every five years and can be revoked. The law would take effect July 1, 2026, with certification applications open starting July 1, 2027.

• Creates a new certification system letting qualified counties and cities apply to the Department of Community Affairs for one of three housing-policy certification levels based on how many zoning and permitting reforms they adopt.
• Requires the Department of Natural Resources to prioritize certified local governments when awarding federal recreational trails program grants, ranked by certification tier.
• Exempts the highest-tier certified local governments (workforce and home ownership leaders) from providing matching funds for local road maintenance and improvement grants.
• Requires the Department of Community Affairs and the Georgia Environmental Finance Authority to give grant and loan priority to certified local governments over uncertified ones.
• Directs the Department of Community Affairs to annually calculate and publish each county's and city's population and median household income to determine eligibility.
• Allows the department to revoke a certification if a local government drops a required policy or fails to reverify its status every five years.

Georgia counties with 50,000 or more residents, cities with 6,500 or more residents, and any local government with median household income above $115,000; the Department of Community Affairs, Department of Natural Resources, Department of Transportation, and Georgia Environmental Finance Authority; and developers, renters, and homebuyers in participating jurisdictions.

Local governments that loosen zoning rules, like allowing duplexes, smaller lots, or reduced parking minimums, could gain an edge in competing for state grants and loans and avoid certain matching-fund requirements, creating a financial incentive for cities and counties to change housing and permitting policies rather than a mandate to do so.

• Section 3 (new O.C.G.A. § 12-2-6.1) directs the Department of Natural Resources to prioritize certified local governments in awarding federal recreational trails program grants, in tiered order.
• Section 4 amends O.C.G.A. § 32-5-27 to waive local matching-fund requirements for local road maintenance and improvement grants for governments certified as 'workforce and home ownership leaders.'
• Section 5 (new O.C.G.A. § 50-8-8.1) requires the Department of Community Affairs to prioritize certified governments in its own grant and loan programs.
• Section 6 (new Article 14 of Chapter 8, Title 50) defines 'qualified county or municipal corporation,' four tiers of qualifying housing policies, and the three certification levels, each requiring 10, 15, or 20 adopted policies respectively, with minimum numbers from each tier.
• Section 6 also sets a July 1, 2027 start date for certification applications, requires reverification every five years, allows revocation, and requires the department to publish population and income data starting January 1, 2027.
• Section 7 (new O.C.G.A. § 50-23-5.1) requires the Georgia Environmental Finance Authority to give the same tiered grant and loan priority to certified local governments.
• Section 8 sets the Act's overall effective date as July 1, 2026.

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
• land use regulation