Senate Bill 257 By: Senator James of the 28th A BILL TO BE ENTITLED AN ACT To amend Chapters 2 and 3 of Title 49 of the Official Code of Georgia Annotated, relating to Department of Human Services and county and district departments, boards, and directors of family and children services, respectively, so as to authorize local governments to adopt and implement affordable family housing assistance programs; to provide for the application and issuance of certificates of approval by the Division of Family and Children Services; to provide for requirements for ordinances and resolutions; to provide for the revocation of such certificates of approval by the division; to require the establishment of affordable family housing assistance trust funds; to provide conditions and restrictions on financial assistance offered through such affordable family housing assistance programs; to provide for reporting requirements; to provide for the determination of median annual gross household incomes; to authorize the promulgation of rules and regulations; to provide definitions; to provide for related matters; to provide for an effective date; to repeal conflicting laws; and for other purposes. BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. Chapter 2 of Title 49 of the Official Code of Georgia Annotated, relating to Department of Human Services, is amended in Code Section 49-2-6, relating to powers and duties, by revising subsection (a) as follows: "(a) The department shall administer or supervise all county departments of the state as provided in Article 1 of Chapter 3 of this title." SECTION 2. Chapter 3 of Title 49 of the Official Code of Georgia Annotated, relating to county and district departments, boards, and directors of family and children services, is amended by designating Code Sections 49-3-1 through 49-3-9 as Article 1 and by adding a new article to read as follows: "ARTICLE 2 49-3-10. As used in this article, the term: (1) 'Affordable family housing' means: (A) An owner occupied residential dwelling for which the annual mortgage payments, taxes, homeowner's insurance premiums, and condominium or association fees, if any, constitute no more than 30 percent of the median annual gross household income, as determined by the division, for a household of the size that may occupy the dwelling in the county where the dwelling is located; or (B) A rented residential dwelling for which the annual rent and other associated fees constitute no more than 30 percent of the median annual gross household income, as determined by the division, for a household of the size that may occupy the dwelling in the county where the dwelling is located. (2) 'Annual gross household income' means all wages and income received by each member of a household from all sources, except those excluded by the division's rules and regulations, in a calendar year. (3) 'Division' means the Division of Family and Children Services of the Department of Human Services. (4) 'Eligible recipient' means a low-income person, a very low-income person, or an eligible sponsor. (5) 'Eligible sponsor' means an individual or entity that constructs, rehabilitates, or otherwise makes affordable family housing available to the public. (6) 'Homeless person' means an individual who is a resident of this state and who has no reasonable access to either traditional or permanent housing which can be considered safe, sanitary, decent, and affordable. (7) 'Local government' means a county, municipal corporation, or consolidated government. (8) 'Low-income person' means a person who is living in a household that is located in this state and that has an annual gross household income that exceeds 50 percent but does not exceed 80 percent of the median annual gross household income, as determined by the division, for households of the same size within the county where such household is located and who has at least one minor dependent. (9) 'Mortgage' means any indebtedness secured by a lien or security interest on a residential dwelling that was incurred to pay for all or part of the purchase price of the residential dwelling by the obligor or obligors of such indebtedness. (10) 'Multifamily structure' means a building, other than a townhouse, that contains four or more individual residential dwelling units, each of which is designed exclusively for use and occupation by one family. (11) 'Single-family residential dwelling' means: (A) A building that contains one residential dwelling unit and that is designed exclusively for use and occupation by one family; or (B) A townhouse. (12) 'Townhouse' means an individual residential dwelling unit within a larger structure that contains two or more attached residential dwelling units constructed in a row where each residential dwelling unit is designed exclusively for use and occupation by one family, is located on an individual lot or parcel, and shares at least one common wall with an adjacent unit. (13) 'Very low-income person' means: (A) A person who is living in a household that is located in this state and that has an annual gross household income that does not exceed 50 percent of the median annual gross household income, as determined by the division, for households of the same size within the county where such household is located and who has at least one minor dependent; or (B) A homeless person. 49-3-11. (a) On and after January 1, 2026, any local government in this state is authorized, but not required, to adopt and implement by ordinance or resolution an affordable family housing assistance program in its respective jurisdiction in accordance with the provisions of this article. (b) Such affordable family housing assistance program shall award loans, grants, guarantees, or other forms of financial assistance to eligible recipients for the sole purpose of: (1) Constructing or rehabilitating affordable family housing or otherwise making affordable family housing available to the public; or (2) Offering assistance for payment of security deposits, first month's rent, and final month's rent to low-income persons or very low-income persons. 49-3-12. (a) Any local government that elects to establish an affordable family housing assistance program pursuant to this article shall apply to the division for a certificate of approval. The division shall, by rules and regulations, prescribe the form and manner of such application for a certificate of approval. (b) The division shall approve an application and issue a certificate of approval if the division determines that the local government has adopted an ordinance or resolution establishing an affordable family housing assistance program that complies with the provisions of Code Section 49-3-13 and any rules or regulations promulgated by the division pursuant to this article. (c) After a certificate of approval has been issued to a local government pursuant to this Code section, the division shall continue to monitor such local government's affordable family housing assistance program to ensure its ordinance or resolution establishing the program is still in effect and that such local government's actions are in conformance with such ordinance or resolution. 49-3-13. (a) A local government shall not be issued a certificate of approval by the division under Code Section 49-3-12 unless such local government adopts an ordinance or resolution establishing an affordable family housing assistance program pursuant to this article. Such ordinance or resolution shall: (1) Establish and maintain an affordable family housing assistance trust fund in accordance with the provisions of Code Section 49-3-15; (2) Establish specific loans, grants, guarantees, or other forms of financial assistance that will be made available to eligible recipients through the affordable family housing assistance program. Such loans, grants, guarantees, or other forms of financial assistance shall be consistent with the provisions of this article and any rules and regulations promulgated by the division and be limited to awards that will: (A) Result in the construction or rehabilitation of affordable family housing or otherwise make affordable family housing available to the public; or (B) Offer assistance for payment of security deposits, first month's rent, and final month's rent to low-income persons or very low-income persons; (3) Establish eligibility criteria and terms and conditions for any loans, grants, guarantees, or other forms of financial assistance that will be made available through the affordable family housing assistance program. Such eligibility criteria and terms and conditions shall be consistent with the provisions of this article and any rules and regulations promulgated by the division pursuant to this article; (4) Designate to a committee, council, or department of the local government the responsibility of implementing and administering the affordable family housing assistance program. Such committee, council, or department of the local government shall be given the authority to adopt rules and regulations that are necessary to carry out its duties in administering the affordable family housing assistance program and that are not inconsistent with the provisions of this article or the rules and regulations promulgated by the division pursuant to this article; and (5) Provide for any other matter as may be required by the rules and regulations promulgated by the division pursuant to this article. (b) Any ordinance or resolution adopted by a local government that establishes an affordable family housing assistance program pursuant to this article shall not become effective until such local government is issued a certificate of approval by the division pursuant to Code Section 49-3-12. 49-3-14. (a) The division may revoke a certificate of approval issued to any local government pursuant to Code Section 49-3-12 if the division determines that: (1) The ordinance or resolution adopted by the local government establishing an affordable family housing assistance program pursuant to this article is no longer in effect or has been modified such that the ordinance or resolution no longer complies with the provisions of Code Section 49-3-13; (2) The local government's actions are not in conformance with the ordinance or resolution establishing the affordable family housing assistance program pursuant to this article; or (3) The local government has failed to comply with the reporting obligations set forth in Code Section 49-3-19. (b) Upon the revocation of a certificate of approval pursuant to subsection (a) of this Code section, the division shall notify the local government and the clerk of the superior court of such revocation. 49-3-15. (a) An affordable family housing assistance trust fund established and maintained by a local government pursuant to this article shall be kept separate from all other moneys and accounts of the local government. (b) All moneys appropriated to or otherwise made available by a local government to fund an affordable family housing assistance program adopted pursuant to this article shall be placed into such affordable family housing assistance trust fund by the local government. (c) Disbursements from such affordable family housing assistance trust fund shall only be made by the local government to: (1) Fund a loan, grant, guarantee, or other form of financial assistance that is awarded to an eligible recipient in accordance with the provisions of this article and the rules and regulations adopted by the division; or (2) Provide for the payment of the costs and expenses associated with the local government's administration of the affordable family housing assistance program adopted pursuant to this article. 49-3-16. Any loans, grants, guarantees, or other forms of financial assistance offered by an affordable family housing assistance program established pursuant to this article that are intended to result in the construction or rehabilitation of affordable family housing or otherwise make affordable family housing available to the public shall only be awarded to eligible sponsors that contractually agree to use the proceeds of such assistance to: (1) Construct, rehabilitate, or otherwise make available to the public multiple single-family residential dwellings, each of which will constitute affordable family housing, or one or more multifamily structures whose individual residential dwelling units will constitute affordable family housing; (2) Reserve at least 40 percent of such constructed or rehabilitated residential dwellings for rent to low-income persons; and (3) Reserve at least 20 percent of such constructed or rehabilitated residential dwellings for rent to very low-income persons. 49-3-17. Any affordable family housing assistance program established pursuant to this article that offers assistance for payment of security deposits, first month's rent, and final month's rent to low-income persons or very low-income persons shall only offer such assistance to low-income persons or very low-income persons. 49-3-18. In addition to the provisions of this article, the division shall establish, through rules and regulations, further terms, conditions, and restrictions of any assistance provided through an affordable family housing assistance program established pursuant to this article that the division determines are necessary to ensure that such assistance is appropriately and efficiently awarded and utilized. 49-3-19. (a) Each local government that establishes an affordable family housing assistance program pursuant to this article shall annually file with the division a report specifying and accounting for: (1) All moneys deposited into and disbursed from the affordable family housing assistance trust fund established and maintained pursuant to this article; (2) All loans, grants, guarantees, or other forms of financial assistance awarded by the local government through such program; and (3) Such other information as may be required by the rules and regulations promulgated by the division pursuant to this article. (b) The division shall, by rules and regulations, specify the form and manner that the annual report required under subsection (a) of this Code section shall be filed. 49-3-20. (a) The division shall annually determine and publish on its website the median annual gross household incomes in each county of this state for households that have between one and eight persons. In making such determinations, the division may rely on data and information provided by the United States Census Bureau, the United States Department of Housing and Urban Development, the United States Department of Labor, the United States Department of Commerce, and any other source that the division determines is accurate and reliable. (b) The median annual gross household incomes for each county determined and published by the division pursuant to subsection (a) of this Code section shall be used to determine whether individuals meet the definition of low-income persons or very low-income persons. 49-3-21. (a) The division shall promulgate all rules and regulations required by this article and any further rules and regulations that are not inconsistent with the provisions of this article and that the division deems necessary and proper to administer the provisions of this article. (b) The initial rules and regulations governing affordable family housing assistance programs established pursuant to this article shall be promulgated and adopted by the division by October 1, 2025, after an opportunity has been provided for public comment. (c) The rules and regulations promulgated by the division pursuant to this article shall be subject to Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'" SECTION 3. This Act shall become effective on July 1, 2025. SECTION 4. All laws and parts of laws in conflict with this Act are repealed.