Families First Housing Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6962 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 6962

 To strengthen and standardize ``first look'' protections for covered 
 properties to ensure families and communities have priority access to 
               foreclosed homes, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2026

  Mr. Harrigan (for himself and Mr. Riley of New York) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To strengthen and standardize ``first look'' protections for covered 
 properties to ensure families and communities have priority access to 
               foreclosed homes, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Families First Housing Act of 
2026''.

SEC. 2. FIRST LOOK PROTECTIONS.

    (a) In General.--Each covered entity shall ensure, when selling an 
eligible property, that the eligible property is only available for 
purchase by qualified first look buyers during the 180 day period 
beginning on the date that the eligible property is listed for sale.
    (b) Pricing of Eligible Properties.--
            (1) In general.--During the 180 day period beginning on the 
        date that the eligible property is listed for sale during which 
        an eligible property is only available for purchase by 
        qualified first look buyers the eligible property shall be 
        offered by the covered entity at a price that is the fair 
        market value of the property as determined by an independent 
        third-party appraisal or broker price opinion not more than 60 
        days before the date on which the property was listed for sale.
            (2) Exception.--If the covered entity selling the eligible 
        property determines that the fair market value of the property 
        can not be determined by an independent third-party appraisal 
        or broker price opinion not more than 60 days before the date 
        on which the property was listed for sale the covered entity 
        may offer the covered property at a price based on a 
        standardized valuation model used by the covered entity if the 
        covered entity publically discloses the methodology used by 
        such standardized valuation model.
    (c) Listing on Public Website.--During the 180-day period beginning 
on the date that the eligible property is listed for sale during which 
an eligible property is only available for purchase by qualified first 
look buyers the eligible property shall be listed on a publically 
accessible website by the covered entity in a manner that identifies 
the eligible property as only available for purchase by qualified first 
look buyers and indicates how many days remain in the 180-day period 
during which the eligible property is only available for purchase by 
qualified first look buyers.
    (d) Prohibition on Bundling.--An eligible entity may not bundle 
eligible properties during the 180 day period beginning on the date 
that the eligible property is listed for sale by the eligible entity.
    (e) Publication of Information.--Each covered entity shall, each 
quarter, publish on a website of the covered entity, information 
about--
            (1) the number of covered properties sold during the prior 
        quarter;
            (2) the number of covered properties sold to qualified 
        first look buyers during the prior quarter;
            (3) the number of covered properties sold to institutional 
        investors during the prior quarter;
            (4) the pricing methodology used by the covered entity when 
        selling covered properties; and
            (5) for each covered property sold during the prior 
        quarter, the ratio of the sale price to the fair market value 
        of the covered property as determined by an independent third-
        party appraisal, broker price opinion, or standardized 
        valuation model.
    (f) Annual Report.--
            (1) In general.--The Inspectors General of each covered 
        entity shall, each year, review all sales of covered properties 
        by the covered entity in the prior year and determine whether 
        any provisions of this section were violated during such sale.
            (2) Report.--The Inspectors General of each covered entity 
        shall submit a report to the Congress each year that includes 
        the results of the review conducted under paragraph (1).
            (3) Public publication.--The Inspectors General of each 
        covered entity shall publish the report submitted under 
        paragraph (2) on a publically accessible website of the covered 
        entity.
    (g) Violations.--If the Secretary of Housing and Urban Development 
determines that a covered entity has violated this section, the 
Secretary of Housing and Urban Development may--
            (1) require the covered entity to publically disclose the 
        violation;
            (2) impose a civil penalty of the greater of $100,000 or 
        \1/3\ of the price for which the covered property was sold on 
        each employee of the covered entity involved in the violating 
        transaction; and
            (3) require the covered entity, if practicable without 
        breaching contracts, to reverse or unwind the transaction 
        associated with the violation.
    (h) Rulemaking.--Each covered entity shall, not later than 180 days 
after the date of the enactment of this section, issue such rules are 
necessary to carry out this section and such rules shall include a 
process to verify the eligibility of qualified first look buyers.
    (i) Effective Date.--This section shall take effect 180 days after 
the date of the enactment of this Act.
    (j) Definitions.--In this section:
            (1) Covered property.--The term ``covered property'' means 
        any single-family residential property made up of 1 to 4 units, 
        owned, foreclosed upon, or under disposition by a covered 
        entity.
            (2) Covered entity.--The term ``covered entity'' means--
                    (A) the Federal Housing Administration;
                    (B) the Federal Housing Finance Agency;
                    (C) the Federal National Mortgage Association;
                    (D) the Federal Home Loan Mortgage Corporation; and
                    (E) the Department of Agriculture.
            (3) Institutional investor.--The term ``institutional 
        investor'' means any entity that purchases properties for 
        rental, resale, or investment purposes, including trusts, 
        corporations, real estate investment trusts, limited liability 
        companies, and partnerships.
            (4) Qualified first look buyer.--The term ``qualified first 
        look buyer'' means--
                    (A) a natural person intending to occupy the 
                property as their primary residence;
                    (B) a nonprofit housing organization which is an 
                organization described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and is exempt from 
                taxation under section 501(a) of such Code;
                    (C) a unit of local government; or
                    (D) a community land trust.
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