119-hr4023

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4023 Introduced in House

    (IH) ]

<DOC>

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).
 <all>