Referred to the House Committee on Financial Services.
Finance and Financial Sector
Why This Matters
This bill creates a federal program to give downpayment and related help to first-generation homebuyers. It aims to reduce racial and generational gaps in homeownership.
Who this affects
First-generation homebuyers · State housing finance agencies · Eligible nonprofits · Local governments
What changes is this bill making?
1Establishes a HUD (Department of Housing and Urban Development) program that awards grants to States and eligible local or nonprofit entities to help first-generation homebuyers buy a primary residence
2Allows grants to cover downpayment costs, closing costs, interest rate subsidies, shared equity discounts, and pre-move-in disability modifications
3Caps assistance at the greater of $20,000 or 10 percent of the purchase price, with higher limits for socially and economically disadvantaged buyers or homes in high-cost areas
4Requires homebuyers to self-attest as first-generation and meet income limits (up to 120 percent of area median income or 140 percent in high-cost areas)
5Limits eligible homes to 1–4 unit properties that buyers will occupy as their primary residence and requires partial repayment if they move or sell before five years
6Mandates housing counseling before purchase, allocates at least 5 percent of funds for counseling, and allows online or alternative education if agencies lack capacity
7Sets annual reporting requirements on applicant demographics, assistance types, and property data, with privacy protections for personal information
8Authorizes $100 billion in grants and gives HUD authority to set program rules and recapture unused funds
