The Permanent Housing Affordability Act seeks to expand access to permanently affordable homeownership through **shared equity models**. It establishes a program within the Department of the Treasury to provide grants to eligible state agencies, housing authorities, and community development financial institutions. These grantees will then offer **low-interest construction loans**, capped at 3% interest, to eligible entities like local governments and nonprofit organizations for developing or rehabilitating housing. The housing developed must be sold to qualified homebuyers with incomes up to 120% of the area median income and maintain affordability for at least 99 years through resale formulas. This fund is authorized with $100 million for fiscal year 2027. Additionally, the bill creates a **pilot grant program** under the Department of Housing and Urban Development (HUD) to directly fund eligible entities. These grants will support the purchase of land or existing properties for the development of homes sold to households earning up to 80% of the area median income, or 120% in rural areas. A key requirement for both funding streams is the implementation of mechanisms like ground leases or deed restrictions to ensure the **long-term affordability** of the homes. This pilot program is authorized with $100 million annually for fiscal years 2027 through 2031. To further support these initiatives, the bill directs HUD to establish research and public awareness programs. These include conducting research on best practices for shared equity models, providing technical assistance and capacity building to organizations, and launching campaigns to educate the public and financial sector about the benefits of shared equity homeownership. Finally, the legislation amends federal law to allow for the conveyance of **surplus federal real property** to community land trusts or other shared equity models at a significant discount, ensuring its use for perpetually affordable housing. These measures collectively aim to address housing affordability challenges by fostering sustainable homeownership opportunities.