Sec. 2. First-generation downpayment assistance downpayment program
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/bill/117/hr/4495/ih/section-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary of Housing and Urban Development shall carry out a program under this Act to provide grants to States and eligible entities to provide financial assistance under this Act to first-generation homebuyers to assist them with acquiring owner-occupied primary residences. After reserving amounts as required under sections 6(d) and 8(b), any remaining amounts made available to carry out this Act shall be allocated as follows: 75 percent of such amounts shall be allocated among States in accordance with a formula established by the Secretary, which shall take into consideration— adult population size (excluding existing homeowners); median area home prices; and racial disparities in homeownership rates. 25 percent of such amounts shall be made available only to eligible entities on a competitive basis.
Amounts from a grant under this Act shall be used only to provide assistance— on behalf of a qualified homebuyer; and for— costs in connection with the acquisition, involving an eligible mortgage loan, of an eligible home, including downpayment costs, closing costs, and costs to reduce the rates of interest on eligible mortgage loans; for subsidies to make shared equity homes affordable to eligible homebuyers by discounting the price for which the home will be sold and to preserve the home's affordability for subsequent eligible buyers; and for pre-occupancy home modifications required to accommodate qualified homebuyers or members of their household with disabilities.
A grant of assistance under this Act— may be provided on behalf of any qualified homebuyer only once; and may not exceed $20,000, or $25,000 in the case of a qualified homebuyer who is a socially and economically disadvantaged individual, except that the Secretary may increase such maximum limitation amounts in the case of qualified homebuyers acquiring residences located in high-cost areas, as determined based on median home prices or prices of residences under a shared equity homeownership program.
Assistance from grant amounts under this Act may be provided on behalf of a qualified homebuyer who is receiving assistance from other sources, including other State, Federal, local, private, public, and nonprofit sources, for acquisition of an eligible home. The Secretary shall require that each State receiving grant amounts under this Act administer the program to provide assistance with such amounts through the State housing finance agency for the State or such other housing agency of the State as the Secretary finds appropriate, except that any such agency may, at the option of the agency, contract with a nonprofit entity, including a housing counseling agency approved by the Secretary, to administer such assistance.
For a State to be eligible for a grant under this Act, the State shall be in compliance with the Secretary’s regulations implementing the requirement under section 808(e)(5) of the Fair Housing Act ( 42 U.S.C. 3608(e)(5) ) to affirmatively further fair housing. In selecting qualified homebuyers for assistance with grant amounts under this Act, a State or eligible entity may not provide any priority or preference for homebuyers who are acquiring eligible homes with a mortgage loan made, insured, guaranteed, or otherwise assisted by the State housing finance agency for the State, any other housing agency of the State, or an eligible entity when applicable.
The Secretary shall reallocate any grant funds under this Act allocated for a fiscal year that remain unused at the end of such fiscal year among States and eligible entities that demonstrate to the Secretary the capacity to expend such amounts and that are satisfactorily meeting the goals of the program under this Act, as determined by the Secretary. The Secretary shall establish a uniform set of requirements to which each State and eligible entity receiving grant amounts under this Act shall comply.
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Sec. 2
First-generation downpayment assistance downpayment program
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