[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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