HB1597: HB1597 Georgia Dream Expansion and Housing Affordability Act of 2026; enact

26 LC 62 0506 House Bill 1597 By: Representatives Jackson of the 68th, Mitchell of the 88th, Reese of the 140th, Clark of the 108th, and Bazemore of the 69th A BILL TO BE ENTITLED AN ACT To amend Chapter 8 of Title 50 of the Official Code of Georgia Annotated, relating to the1 Department of Community Affairs, so as to provide for maximum loan amounts for certain2 home buying assistance programs; to provide for loan structure and forgiveness; to provide3 for certain qualifications for eligibility; to provide for certain minimum fund allocation; to4 provide for definitions; to provide for a short title; to provi de for legislative findings; to5 provide for related matters; to repeal conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 This Act shall be known and may be cited as the "Georgia Dream Expansion and Housing9 Affordability Act of 2026."10 SECTION 2.11 The General Assembly finds that:12 (1) Homeownership is the primary vehicle for generational wealth building in this state;13 H. B. 1597 - 1 - 26 LC 62 0506 (2) Rising interest rates and historic increases in home prices have placed the "Georgia14 Dream" out of reach for a significant portion of the workforce, including, but not limited15 to, teachers, healthcare workers, and veterans;16 (3) The current home down payment assistance levels of $10,000.00 to $12,500.00 are17 no longer sufficient to bridge the affordability gap in a market where median home prices18 in metropolitan areas exceed $400,000.00; and19 (4) Providing bold, fr ont-end financial support reduces the lo ng-term need for state20 subsidized rental assistance and helps stabilize local economies.21 SECTION 3.22 Chapter 8 of Title 50 of the Official Code of Georgia Annotated, relating to the Department23 of Community Affairs, is amended by adding a new article to read as follows:24 "ARTICLE 1425 50-8-310.26 As used in this article, the term:27 (1) 'First-generation homebuyer' means an individual who has not owned a home in the28 last three years and whose parents or guardians do not currentl y hold an ownership29 interest in a residential property.30 (2) 'Qualified public service professional' means any educator, law enforcement officer,31 firefighter, emergency medical technician, or healthcare professional employed full-time32 in this state.33 50-8-311.34 For department managed loan programs providing technical assist ance and financing35 options for the purchase of a residence, including, but not limited to, the Georgia Dream36 Loan Program, the department shall provide to applicants of the program:37 H. B. 1597 - 2 - 26 LC 62 0506 (1) Down payment assistance consisting of a loan of $30,000.00 to be applied to the38 purchase price of a primary residence; and39 (2) Closing cost assistance consisting of a loan of $15,000.00 to be applied to loan40 origination fees, inspections, and other standard closing costs.41 50-8-312.42 (a) To encourage community stability, loans granted pursuant t o this article shall be43 structured as zero interest, nonamortizing loans. Ten percent of the total balance of such44 loans shall be forgiven annually on the anniversary of the closing date of the purchase of45 the primary residence. After ten years of primary residency, any remaining loan balance46 shall be forgiven.47 (b) The department shall adjust income eligibility limits of d epartment managed loan48 programs providing technical assistance and financing options f or the purchase of a49 primary residence to applicants who earn up to 140 percent of the area median income of50 high-cost counties in this state to ensure middle-income famili es in rapidly growing51 districts remain eligible.52 (c) Not less than 20 percent of annual program funding shall b e reserved for53 first-generation homebuyers and qualified public service professionals."54 SECTION 4.55 All laws and parts of laws in conflict with this Act are repealed.56 H. B. 1597 - 3 -