A nonprofit may buy a property without addressing repairs at purchase
To increase the supply of housing in America, and for other purposes, section 502, Sec. 502.
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A nonprofit may buy a property without addressing repairs at purchase
The document says “can”Who acts: nonprofit and public body purchasersHow: statuteSec. 502 in the PDF
What the document says
“``(A) makes a commitment to address rehabilitation needs during ownership and long-term use restrictions on the property; and ``(B) at the time of purchase, accepts long-term use restrictions on the property.''; and”
The section amends section 515 of the Housing Act of 1949 to let a nonprofit or public body purchaser, including a limited partnership whose general partner exists mainly to provide affordable housing, buy a property with a market value appraisal without addressing repair needs at purchase, so long as it commits to address them during ownership and accepts long-term use restrictions at purchase. It also raises a figure in subsection (w)(1) from 9 percent to 25 percent.
What the document actually says
“``(A) makes a commitment to address rehabilitation needs during ownership and long-term use restrictions on the property; and ``(B) at the time of purchase, accepts long-term use restrictions on the property.''; and”
That sentence, in plain words
The buyer must promise to deal with repairs while it owns the place. It must also accept long-term limits on how the property is used. Both must be agreed at the time of sale.
What this is about
Repairs can cost more than a buyer has on day one. Requiring them up front can block a sale. This lets the promise stand in for the work.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Increase the supply of housing in America, Public Law 119-101, sec. 502, 140 Stat. 918 (2026). https://www.govinfo.gov/content/pkg/PLAW-119publ101/html/PLAW-119publ101.htm
This page
“A nonprofit may buy a property without addressing repairs at purchase,” Increase the supply of housing in America, section 502, Sec. 502. Read the Mandate, https://readthemandate.org/pl-119-101/proposal/sec502-transfers/ (retrieved August 26, 2026).
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