[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4023 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4023
To direct the Secretary of Housing and Urban Development to establish a
pilot program to award grants to States, territories, and Indian tribes
to provide down payment assistance loans to certain borrowers, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 17, 2025
Mr. Carbajal introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To direct the Secretary of Housing and Urban Development to establish a
pilot program to award grants to States, territories, and Indian tribes
to provide down payment assistance loans to certain borrowers, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Dream for All Act''.
SEC. 2. APPRECIATION SHARING DOWN PAYMENT LOAN PILOT PROGRAM.
(a) In General.--Not later than 1 year after the date of the
enactment of this section, the Secretary of Housing and Urban
Development (hereafter referred to as the ``Secretary'') shall
establish a pilot program to award capitalization grants to eligible
entities.
(b) Eligible Entity.--To be eligible to receive a grant under this
section, an entity shall--
(1) be an agency of a State or Indian tribe, or
instrumentality thereof, including a State or Indian tribe
housing finance agency; and
(2) have or establish a revolving loan fund (hereafter
referred to a ``State loan fund'') for the purpose of providing
down payment assistance loans.
(c) Determination of Amount.--The Secretary shall award grants
under this section in amounts that are proportional to the population
of the State or Indian tribe in which the grant amounts are directed,
as determined by the Secretary.
(d) Use of Funds.--
(1) In general.--An eligible entity that is awarded a grant
under this section--
(A) shall deposit such grant amounts into the State
loan fund of such eligible entity;
(B) shall provide down payment assistance loans
with such grant amounts from the State loan fund to
eligible borrowers in an amount that is--
(i) not more than 20 percent of the
purchase price of the home; and
(ii) not less than 3 percent of the
purchase price of the home;
(C) shall distribute such assistance loans to
eligible borrowers--
(i) on a first-come, first-serve basis; or
(ii) by lottery option;
(D) may not use more than 15 percent of such grant
amounts for administrative costs; and
(E) may determine any additional requirements for
eligible borrowers with respect to the first mortgage
of the home.
(2) Distribution of loans.--An eligible entity that
distributes down payment assistance loans with amounts provided
under this section may--
(A) distribute such assistance loan to an eligible
borrower prior to the purchase of a home; and
(B) provide the eligible borrower with--
(i) a certain time period to locate a home
and enter a purchase sale contract, as
determined by the eligible entity based on
market conditions; and
(ii) the option to renew the loan offer,
one time, as determined by the eligible entity.
(e) Terms and Limitations.--
(1) Repayment.--
(A) Repayment from borrower.--An eligible borrower
that receives a down payment assistance loan with
amounts provided under this section shall, upon the
sale of the home purchased with the assistance of such
loan, repay such assistance loan to the eligible entity
that distributed such assistance loan in an amount that
is equal to--
(i) with respect to a home that appreciates
in value--
(I) the amount of such loan; and
(II) the amount that is equal to
the percentage of such loan of the
purchase price of the home multiplied
by the amount of appreciation of the
home; or
(ii) with respect to a home that
depreciates in value, the amount of such loan.
(B Return to state loan fund.--An eligible entity
that receives repayment under subparagraph (A) shall
return the amounts from the repayment back into the
State loan fund, to be redistributed as a down payment
assistance loan as described in this section.
(2) Maximum loan amount.--
(A) In general.--The maximum loan amount provided
to an eligible borrower shall be--
(i) $150,000 in a high-cost State or Indian
tribe;
(ii) $100,000 in a medium-cost State or
Indian tribe; and
(iii) $50,000 in a low-cost State or Indian
tribe.
(B) Classification.--Annually, the Secretary, in
consultation with the eligible entity in each State or
Indian tribe that is awarded a grant under this
section--
(i) shall determine the cost-category
described in subparagraph (A) of such State or
Indian tribe; and
(ii) shall increase or decrease the maximum
loan amounts described in subparagraph (A)
based on the consumer price index.
(f) Reports.--
(1) Reports to the secretary.--An eligible entity that is
awarded a grant under this section shall submit to the
Secretary a report, on an annual basis or as determined
appropriate by the Secretary, that includes--
(A) the number of down payment assistance loans
distributed using such grant amounts;
(B) the number of home sales processed using down
payment assistance loans;
(C) the amount of each down payment assistance loan
distributed; and
(D) any other data as determined appropriate by the
Secretary.
(2) Report to the congress.--Not later than 1 year after
the pilot program has been established, the Secretary shall
submit to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report with respect to the
implementation of the pilot program.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary such sums as may be necessary for each of
fiscal years 2026 through 2030 to carry out this section.
(h) Definitions.--In this section:
(1) Eligible borrower.--The term ``eligible borrower''
means an individual that--
(A) is a citizen or permanent resident of the
United States;
(B) is a first-time homebuyer or a first-generation
homebuyer;
(C) has completed a homebuyer education course, as
determined appropriate by the Secretary, including
individual counseling;
(D) has a certificate of completion from a Housing
Counseling Agency approved by the Secretary;
(E) has an income that is not more than 150 percent
of the area median income; and
(F) by self-attestation, does not have the ability
to pay more than 5 percent of the total value of the
home for which a loan under this section is used.
(2) First-time homebuyer.--The term ``first-time
homebuyer'' has the meaning given the term in section 104 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12704), except that for the purposes of this section the
reference in such section 104 to title II shall be considered
to refer to this section, and except that ownership of heir
property shall not be treated as owning a home for purposes of
determining whether a borrower qualifies as a first-time
homebuyer.
(3) First-generation homebuyer.--The term ``first-
generation homebuyer'' means a homebuyer who is, as self-
attested by the homebuyer--
(A) an individual--
(i) whose parents or legal guardians 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 residence
in any State, excluding ownership of heir
property or ownership of chattel; and
(ii) whose spouse or domestic partner has
not, during the 3-year period ending upon
acquisition of the eligible home to be acquired
using such assistance, had any present
ownership interest in a residence in any State,
excluding ownership of heir property or
ownership of chattel, whether the individual is
a co-borrower on the loan or not; or
(B) an individual who has at any time been placed
in foster care or institutional care whose spouse or
domestic partner has not, during the 3-year period
ending upon acquisition of the eligible home to be
acquired using such assistance, had any ownership
interest in a residence in any State, excluding
ownership of heir property or ownership of chattel,
whether such individual is a co-borrower on the loan or
not.
(4) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 248(i) of the National
Housing Act (12 U.S.C. 1715z-13(i)).
(5) State.--The term ``State'' has the meaning given the
term in section 201(d) of the National Housing Act (12 U.S.C.
1707).
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