No CRS summary available for this bill.
This section establishes a first-generation downpayment assistance program to be carried out by the Secretary of Housing and Urban Development (HUD) through grants to states and eligible entities for financial assistance to qualified homebuyers (i.e., first-generation homebuyers as defined in section 10) acquiring owner-occupied primary residences. After reserving amounts under sections 6(d) and 8(b), remaining funds are allocated 75% to states via a formula prioritizing areas with more potential qualified homebuyers adjusted for median home prices, and 25% competitively to eligible entities. Assistance covers downpayment and closing costs, interest rate reductions on eligible mortgage loans, shared equity subsidies to preserve affordability, and pre-occupancy disability modifications; per qualified homebuyer, it is limited to the greater of $20,000 or 10% of the purchase price (once per buyer, excluding disability modifications), with possible increases for socially/economically disadvantaged buyers or high-cost areas. Grants may layer with other assistance sources. States must administer via housing finance or other approved agencies (optionally contracting HUD-approved nonprofits), comply with HUD's affirmatively furthering fair housing regulations (42 U.S.C. 3608(e)(5)), and avoid prioritizing agency-financed mortgages or recouping funds except as authorized. HUD may recapture and reallocate funds for untimely expenditure, distributions predictably disadvantaging racial/ethnic groups facing historic homeownership barriers, or insufficient demand among eligible entities; HUD must also impose uniform program requirements.
This section establishes eligibility requirements for homebuyers receiving downpayment assistance grants under the Act, limiting such assistance to first-time and first-generation homebuyers whose household income does not exceed 120% of the area median income (or 140% if the home is in a high-cost area, as determined by the Secretary). A first-time homebuyer is defined by reference to section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704), except that the reference to title II is deemed to mean this Act and ownership of heir property is excluded from prior homeownership. A first-generation homebuyer is an individual, as self-attested, whose parents or legal guardians had no residence ownership interest (excluding heir property or chattel), whose spouse or domestic partner had no such interest in the prior three years, or who was in foster or institutional care (with the same spousal/domestic partner exclusion). This section further prohibits requiring documentation beyond attestation to verify first-generation status and exempts creditors from liability—including penalties, indemnification, or loan repurchase—for assistance provided to ineligible homebuyers based on good-faith reliance on such attestations.
This section establishes eligibility criteria for homes under the Act, limiting assistance to the acquisition by a qualified homebuyer of a residential property consisting of 1 to 4 dwelling units that the homebuyer will occupy as their primary residence, subject to required assurances and commitments. The section further requires repayment to the state or eligible entity of a prorated portion of the assistance if the homebuyer ceases primary occupancy before 5 years (with no repayment required after 5 years or for shared equity homeownership programs), but exempts repayment for hardships or if the home is sold to a bona fide purchaser within 60 months with capital gains less than the required repayment amount.
This section limits assistance from grant amounts under the Act to the acquisition of eligible homes involving a residential mortgage loan that (1) meets the underwriting requirements and dollar amount limitations for acquisition by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac); (2) is made, insured, or guaranteed under any program administered by the Secretary of Housing and Urban Development; (3) is made, insured, or guaranteed by the Rural Housing Service of the Department of Agriculture; (4) is a qualified mortgage, as defined in section 129C(b)(2) of the Truth in Lending Act (i.e., a loan that presumptively satisfies the ability-to-repay requirements of that section); or (5) is guaranteed for the benefit of a veteran.
This section establishes a housing counseling requirement for qualified homebuyers prior to receiving grant assistance under the Act, mandating completion of a program—delivered in-person, virtually, by telephone, or other Secretary-approved methods through a Secretary-approved agency—covering homeownership responsibilities, financial management, fair housing rights, post-purchase counseling availability, and instructions for filing fair housing complaints before entering a sales purchase agreement or loan application. It authorizes alternative homebuyer education (e.g., online platforms) if the required counseling cannot be completed within 30 days due to agency capacity issues; requires referral to counseling upon mortgage denial for homebuyers who have received an assistance commitment, with at least one additional requalification per calendar year (or more as determined by the Secretary); and directs the Secretary to use at least 5% of appropriated amounts for these counseling costs.
This section requires the Secretary, for each fiscal year grants are made under the Act, to submit to Congress and publish online an annual report including (1) demographic data on applicants and recipients (i.e., race, ethnicity, gender); (2) types and amounts of assistance provided (e.g., downpayment assistance, closing costs, mortgage interest rate reductions); and (3) data on acquired properties (e.g., location, value, type, first mortgage type and investor)—with all data disaggregated by ZIP code or census tract to assess equitable outcomes and affirmatively further fair housing. It reserves up to 1% of appropriated funds for capacity building to assist states and eligible entities in meeting these reporting requirements, encouraging consultation with fair housing and fair lending organizations. It further requires grant recipients to establish data privacy and security measures protecting individual privacy, limiting data use to reporting, and providing confidentiality for survivors of intimate partner violence, sexual assault, or stalking; it also authorizes the Secretary to share unredacted data (including personally identifiable information) for statistical research under existing law, at the census tract level, subject to the same privacy requirements.
This section directs the Secretary, in consultation with the Attorney General, to survey and compile evidence on whether there is a sufficient history of discrimination in housing and, if so, the appropriate remedy; make conclusions and recommendations based on that evidence; and provide states and eligible entities awarded assistance under this Act an opportunity to modify their programs accordingly.
This section defines terms for purposes of the Act, including (1) affirmatively further fair housing (as defined by HUD to implement the Fair Housing Act); (2) eligible entity (i.e., minority depository institutions, certain community development financial institutions, qualifying nonprofits, and units of general local government); (3) eligible home (a residential dwelling meeting requirements of section 4); (4) eligible mortgage loan (a residential mortgage loan meeting requirements of section 5); (5) heir property (residential property held by multiple heirs as tenants in common due to intestacy); (6) ownership interest (fee simple, 99-year renewable leasehold, or certain multifamily interests, excluding heir property); (7) qualified homebuyer (meeting requirements of section 3, including multi-member households); (8) Secretary (of Housing and Urban Development); (9) shared equity homeownership program (affordable homeownership preservation via resale restrictions administered by community land trusts, nonprofits, or state/local governments); (10) socially and economically disadvantaged individual (socially disadvantaged persons, with presumption for Black, Hispanic, Native American, or Asian-American individuals, who also meet income requirements of section 3(a)); and (11) State (any state, District of Columbia, territory, or tribal government).
This section authorizes the Secretary to establish, by notice or mortgagee letter, any requirements necessary for timely and effective implementation of the program and expenditure of appropriated funds, with such requirements taking effect upon issuance.