Sec. 201. Down payment assistance program for first-time, first-generation homebuyers
1,185 words·~5 min read·
/bill/119/s/934/is/section-201A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this section: The term eligible resident means an individual who— is a first-time homebuyer; is a first-generation homebuyer; and has an income that is less than— 120 percent of the area median income; or in the case of a homebuyer acquiring a property for use as a principal residence that is located in a high-cost area, as determined by the Secretary, 140 percent of the area median income. The term first-generation homebuyer means a homebuyer who is, as self-attested by the homebuyer, an individual— whose parents do not, or did not at the time of their death, to the best of the individual's knowledge, have any present ownership interest in a principal residence in any State, excluding ownership of heir property; and whose spouse or domestic partner has not, during the 3-year period ending on the date of purchase of a property using a grant under subsection (b), had any present ownership interest in a principal residence in any State, excluding ownership of heir property, without regard to whether the spouse or domestic partner is a co-borrower on a mortgage for the property being purchased.
The term first-time homebuyer means a homebuyer who is, as self-attested by the homebuyer, an individual (and if married or in a domestic partnership, the spouse or domestic partner of the individual) who, during the 3-year period ending on the date of purchase of a property using a grant under subsection (b)— has had no present ownership in a principal residence in any State, excluding ownership of heir property; or surrendered any present ownership interest in a principal residence in any State, excluding ownership of heir property, as part of a divorce proceeding.
The term heir property means residential property for which title— passed by operation of law through intestacy; and is held by 2 or more heirs as tenants in common. The term Secretary means the Secretary of Housing and Urban Development. The term State includes the District of Columbia and any territory or possession of the United States. There is established in the Treasury of the United States a fund that— shall be administered by the Secretary, acting through the Office of Housing of the Department of Housing and Urban Development; and shall be used— to provide grants to eligible residents to purchase a property for use as a principal residence; for outreach to financial institutions in targeted areas and eligible residents, including for the administration of that outreach; for counseling or financial education administered by counseling agencies approved by the Secretary in order to ensure sustainable homeownership; and to maintain any records required to implement this section.
An eligible resident may receive a grant under subsection
(b)in an amount equal to— not more than 3.5 percent of the appraised value of the property to be purchased; or if the appraised value of the property to be purchased exceeds the principal obligation amount limitation for mortgages insured under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. ), 3.5 percent of the maximum principal obligation limitation for the property to be purchased. An eligible resident shall not be required to obtain a mortgage that is insured under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. ) as a condition of receiving a grant under subsection (b). Receipt by an eligible recipient of assistance for a down payment from a source other than the fund established under subsection (b), including assistance from the Federal Government, a State or local government, or any other public, private, or nonprofit source, shall not affect the eligibility of the eligible recipient for assistance under subsection (b). Not later than 1 year after the date of enactment of this Act, the Secretary shall— in consultation with interested parties, including housing counseling agencies approved by the Secretary and individuals or groups with expertise in fair housing, promulgate regulations relating to the use of the fund established under subsection (b); promulgate regulations relating to the disbursement of funds under this section to ensure that an eligible resident is able to receive funds before the closing date for the home of the eligible resident, which may include creating a program that allows a lender to be reimbursed by the fund established under subsection
(b)if the lender— provides an eligible resident with funds for the closing; or allows an eligible resident to be preapproved to receive assistance under this section when arranging financing for the home of the eligible resident; and establish methods to verify that an individual is an eligible resident. Out of funds in the Treasury not otherwise appropriated, there is appropriated to the fund established under subsection
(b)such sums as may be necessary for each of fiscal years 2025 through 2034 to carry out the activities under subsection (b)(2). Section 5(b) of the Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2604(b) ) is amended by inserting after paragraph
(14)the following: Information relating to the down payment assistance program established under section 201 of the American Housing and Economic Mobility Act of 2025 . . Section 203(f)(1) of the National Housing Act ( 12 U.S.C. 1709(f)(1) ) is amended by inserting , including the down payment assistance program established under section 201 of the after American Housing and Economic Mobility Act of 2025 , mortgage products . No additional documentation beyond the borrower’s attestation shall be required to demonstrate eligibility under paragraphs
(2)and
(3)of subsection (a), and no creditor shall be subject to liability, including monetary penalties or requirements to indemnify a Federal agency or repurchase a loan that has been sold or securitized, for the provision of down payment assistance under this section to a borrower who does not meet the eligibility requirements under those paragraphs if the creditor does so in good faith reliance on borrower attestations of eligibility required by those paragraphs or any regulation promulgated to carry out those paragraphs. An eligible resident who receives a grant under subsection
(b)to purchase a property for use as a principal residence and does not occupy the property as a principal residence for 5 years or more shall repay to the Secretary a proportional amount of the grant based on the number of years, if any, for which the eligible resident has occupied the property as a principal residence. Notwithstanding paragraph (1), an eligible resident who receives a grant under subsection
(b)to purchase a property for use as a principal residence and does not occupy the property as a principal residence for 5 years or more shall not be liable to the Secretary for repayment under paragraph
(1)of this subsection if— the failure to occupy the property as a principal residence is due at least in part to a hardship; or the eligible resident sells the property before the expiration of the 5-year period beginning on the date of acquisition and the capital gains from the sale to a bona fide purchaser in an arm’s length transaction are less than the amount the eligible resident would be required to repay under paragraph (1).
Connectionstraces to 3
Traces to 3 documents
Citation graph
cites case law
Sec. 201
Down payment assistance program for first-time, first-generation homebuyers
Cites 3Cited by 0 across 0 sources