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
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.
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.