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4. A Home for Every Young Family Act: Legislative Outline

Model Legislative Outline, not final bill text. It needs drafting by legislative counsel. Version 2.1, revised November 4, 2026.

This Act may be cited as the “A Home for Every Young Family Act”.

Purpose

To widen the path to home ownership for working families by freeing land, ending exclusionary zoning tied to federal grants, cutting federal regulatory costs, and creating first-home savings accounts.

Principal Requirements

Sec. 4. Federal land for homes

• The Secretary of the Interior and the GSA identify suitable surplus federal land and offer it for sale for housing at fair market value, with proceeds to the Treasury.
• Sale requires the consent of the local government with land-use authority.
• Amends the Federal Land Policy and Management Act (43 U.S.C. 1713).

Sec. 5. Zoning condition on federal grants

• Cities and counties with populations over 50,000 that receive Community Development Block Grants or discretionary Department of Transportation grants must, within 2 years, allow starter homes by right in residential zones.
• “By right” means approval without a hearing or discretionary review when the project meets published objective standards.
• Amends the Housing and Community Development Act (42 U.S.C. 5301 et seq.).

Sec. 6. Lower federal regulatory costs

• HUD publishes each year the estimated cost federal rules add to a typical new home, and agencies must propose reductions.

Sec. 7. First-home savings accounts

• Any individual may contribute up to $10,000 a year from after-tax income (lifetime limit $50,000 per person), indexed to inflation.
• Growth and withdrawals for a down payment and closing costs on a first home are tax-free.
• Other withdrawals: earnings are taxed, plus a 10% additional tax. After 15 years, unused funds may be rolled into a Roth IRA.
• Adds a new section to the Internal Revenue Code of 1986.

Definitions and Eligibility

• “Suitable land”: surplus federal land within 25 miles of an urbanized area, reachable by roads, water, and sewer within 5 years, and not protected wilderness, a national park, or tribal trust land.
• “Starter home”: a home of up to four units on a residential lot.
• “Exclusionary zoning”: a minimum lot size over 5,000 square feet, more than one parking space per unit, or a ban on two-to-four-unit homes in residential zones.
• “First-time homebuyer”: as in 26 U.S.C. 72(t)(8)(D), no ownership interest in a principal residence in the prior 2 years.

Existing Law Affected

• Federal Land Policy and Management Act
• Housing and Community Development Act of 1974
• Internal Revenue Code (new section)

Implementation Timeline

• Accounts: taxable years after enactment.
• Zoning condition: grants made 2 years after enactment.
• Land: first list of suitable land within 1 year.

Responsible Agencies

Department of the Interior and GSA; HUD; Department of Transportation; Treasury and IRS.

Enforcement and Appeals

HUD and Transportation withhold covered grants from non-complying jurisdictions after notice and a chance to comply; jurisdictions may appeal to federal court.

Fiscal Implications

Accounts reduce revenue; land sales raise one-time receipts. No official estimate yet. See the fiscal appendix.

See the fiscal appendix for cited estimates.

Legislative Instrument Required

Bill (H.R.) with a Senate companion bill (S.). The account section is a revenue measure and must start in the House.

Severability: if any provision, or its application to any person or circumstance, is held invalid, the rest of the measure and its other applications are not affected.

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