HB1177: HB1177 Development authorities; certain affordable housing uses of property qualify as projects; provide

Georgia's development authorities are local or regional bodies that can acquire, build, and finance projects meant to boost trade, commerce, industry, or jobs. Under current law, housing projects generally do not count as this kind of "project" that a development authority may undertake. This bill changes that by adding a new category to the definitions section of the development authorities law (O.C.G.A. § 36-62-2). Development authorities could acquire, build, improve, lease, or finance single-family, two-family, or multifamily housing, but only if the authority determines the housing will mostly serve households earning no more than 175 percent of the federal poverty level, and only if a firm or corporation has shown a real need for workforce housing in that county or city. The bill also states legislative findings that a shortage of affordable housing is hurting economic development in parts of the state.

• Adds a new category to the definition of a development authority "project" (O.C.G.A. § 36-62-2) covering single-family, two-family, and multifamily housing.
• Limits this new housing authority to cases where occupancy will primarily be by households earning no more than 175 percent of the federal poverty level.
• Requires a firm or corporation to demonstrate a reasonable need for workforce housing in the county or city before an authority can pursue such a housing project.
• Declares legislative findings that a shortage of affordable housing is inhibiting economic development in parts of Georgia.
• Repeals any existing laws that conflict with the new provisions.

Local and regional development authorities across Georgia, county and municipal governments that activate those authorities, businesses seeking workforce housing for employees, and lower-income households whose housing could be built, financed, or improved under the new authority.

If enacted, development authorities could use their existing financing and construction powers to help create housing aimed at lower-income workers, something they generally cannot do now, potentially expanding the supply of housing tied to local job needs in Georgia communities.

• Section 1 states legislative findings that a shortage of housing affordable to lower-income households is hindering trade, commerce, industry, and job growth in parts of Georgia.
• Section 2 amends paragraph (6) of O.C.G.A. § 36-62-2 by adding subparagraph (O), defining a new type of qualifying 'project' involving residential real or personal property.
• Section 2 conditions this new housing project category on occupancy primarily by households earning no more than 175 percent of the federal poverty level.
• Section 2 also requires a firm or corporation to show a reasonable need for workforce housing in the county or municipal corporation 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