Sec. 2. Establishment of homeownership assistance grant program
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The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this Act, establish a homeownership assistance grant program through which amounts are provided to States and Indian tribes to assist the purchase of eligible homes by eligible persons. The Secretary shall reserve 3 percent of any amounts appropriated under this Act, for a fiscal year, for grants to Indian tribes in accordance with the formula established by the Secretary pursuant to section 302 of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4152 ).
After reserving such amounts for Indian tribes under paragraph (1), the Secretary shall equitably allocate remaining amounts to participating States in accordance with a formula established by the Secretary by rule. States and Indian tribes that receive amounts under this Act shall use such amounts to provide assistance on behalf of eligible persons for— costs incurred acquiring an ownership interest in an eligible home by means of an eligible mortgage loan, including downpayment costs, closing costs, and costs to reduce interest rates on such loan; or pre-occupancy repairs or modifications required for a member of the household of the homebuyer to occupy the home following such acquisition, including repairs to bring the home up to inspection standards and costs associated with reasonable accommodations or reasonable modifications for a household member with a disability, when applicable.
States and Indian tribes that receive amounts under this Act may provide assistance only once on behalf of an eligible person and the amount of such assistance provided on behalf of such eligible person shall be $30,000. States and Indian tribes that receive amounts under this Act may provide assistance on behalf of an eligible person who is receiving assistance from other sources, including other State, Federal, Indian tribe, tribal organization, private and public tax-exempt nonprofit organizations, for acquisition of an ownership interest in an eligible home.
If an eligible person does not continue to occupy, as a primary residence, the eligible home for which the covered person receives assistance under this Act for the 60-month period beginning when the covered person is able to lawfully occupy the eligible home, the Secretary shall require the eligible person to repay the assistance received in an amount that is proportional to the number of months the eligible person did not occupy the eligible home as a primary residence. The Secretary may not require an eligible person to repay assistance under paragraph
(1)if the Secretary determines that— a hardship as described by the Secretary prevents the eligible person from occupying the eligible home as the primary residence; or any amount received by the eligible person from an arm’s length transaction selling the entirety of the ownership interest in the eligible home of the homebuyer to a bona fide purchaser is less than the original cost of acquisition of the home, including closing costs. The State or Indian tribe that provided the assistance to the eligible person may place a lien on the eligible home for the purpose of recapturing such assistance. Any assistance repaid pursuant to paragraph
(1)shall be used to provide assistance to other covered persons. For purposes of the Internal Revenue Code of 1986, gross income shall not include any assistance provided under this Act. Assistance provided to an eligible person by a State or Indian tribe under this section may not be considered funds from a prohibited source for the purposes of section 203(b)(9)(C) of the National Housing Act ( 12 U.S.C. 1709(b)(9)(C) ).
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