119-hr4069

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4069 Introduced in House

    (IH) ]

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119th CONGRESS
 1st Session
 H. R. 4069

 To provide downpayment assistance to first-generation homebuyers to 
address multigenerational inequities in access to homeownership and to 
narrow and ultimately close the racial homeownership gap in the United 
 States, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 June 23, 2025

 Ms. Waters (for herself, Mr. Green of Texas, Ms. Pressley, and Ms. 
 Garcia of Texas) introduced the following bill; which was referred to 
 the Committee on Financial Services

_______________________________________________________________________

 A BILL

 To provide downpayment assistance to first-generation homebuyers to 
address multigenerational inequities in access to homeownership and to 
narrow and ultimately close the racial homeownership gap in the United 
 States, 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 ``Downpayment Toward Equity Act of 
2025''.

SEC. 2. FIRST-GENERATION DOWNPAYMENT ASSISTANCE PROGRAM.

    (a) Establishment.--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.

    (b) Allocation.--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:

    (1) States.--75 percent of such amounts shall be allocated 
 among States in accordance with a formula established by the 
 Secretary, which shall take into consideration best available 
 data to provide more funding to States with a higher 
 approximate number of potential qualified homebuyers (as such 
 term is defined in 

section 10) and adjusted to reflect median 
 area home prices.

    (2) Eligible entities.--25 percent of such amounts shall be 
 made available only to eligible entities on a competitive 
 basis.
            (c) Assistance.--Amounts from a grant under this Act shall be used 
only to provide assistance--

    (1) on behalf of a qualified homebuyer; and

    (2) for--
        (A) 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;
        (B) 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
            (C) for pre-occupancy home modifications required 
 to accommodate qualified homebuyers or members of their 
 household with disabilities.
            (d) Amount.--A grant of assistance under this Act--

    (1) may be provided on behalf of any qualified homebuyer 
 only once; and

    (2) may not exceed the greater of $20,000 or 10 percent of 
 the purchase price in the case of a qualified homebuyer, not to 
 include assistance received under subsection
            (c) (2)
            (C) for 
 disability related home modifications, except that the 
 Secretary may increase such maximum limitation amounts for 
 qualified homebuyers who are socially and economically 
 disadvantaged, 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.

    (e) Layering of Assistance.--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.

    (f) State Administration.--

    (1) In general.--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.

    (2) Affirmatively furthering fair housing.--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.

    (3) Prohibition of priority or recoupment of funds.--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, nor may the State or 
 eligible entity seek to recoup any funds associated with the 
 provision of downpayment assistance to the qualified homebuyer, 
 whether through premium pricing or otherwise, except as 
 provided in subsection

    (g) or otherwise authorized by the 
 Secretary.

    (g) Recapture and Reallocation.--The Secretary shall require 
changes in a grantee's policy or distribution of funds or recapture any 
amounts remaining available to a grantee, and reallocate such funds 
among other States and eligible entities, if the Secretary determines 
in his or her sole discretion that--

    (1) a State or eligible entity--
        (A) has not demonstrated the capacity to expend 
 grant funds in a timely manner that furthers the 
 purposes under this Act; or
        (B) is distributing or plans to distribute grant 
 funds in a manner that results or will predictably 
 result in qualified homebuyers from racial or ethnic 
 groups that have faced historic obstacles to 
 homeownership failing to receive the benefits of such 
 funds in proportion to their population among qualified 
 homebuyers in the relevant area; or

    (2) there is insufficient demand among qualified eligible 
 entities to distribute fund.

    (h) Uniformity and Program Standardization.--The Secretary shall 
establish a uniform set of requirements to which each State and 
eligible entity receiving grant amounts under this Act shall comply.

SEC. 3. QUALIFIED HOMEBUYERS.

    (a) Requirements.--Assistance from grant amounts under this Act may 
be provided only on behalf of a homebuyer who meets all of the 
following requirements:

    (1) Income.--The household of the homebuyer has an income 
 that does not exceed--
        (A) 120 percent of median income for the area (as 
 determined by the Secretary) within which--
            (i) the eligible home to be acquired using 
 such assistance is located; or
            (ii) the place of residence of the 
 homebuyer is located; or
        (B) in the case of a homebuyer acquiring an 
 eligible home that is located in a high-cost area, as 
 determined by the Secretary, 140 percent of the median 
 income for the area within which the eligible home to 
 be acquired using such assistance is located.

    (2) First-time homebuyer.--The homebuyer, as self-attested 
 by the homebuyer, is a first-time homebuyer, as such term is 
 defined in 

section 104 of the Cranston Gonzalez National 
 Affordable Housing Act (42 U.S.C. 12704), except that for the 
 purposes of this Act the reference in such 

section 104 to title 
 II shall be considered to refer to this Act, 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 that 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 individuals are co-borrowers on the loan 
 or not.

    (b) Reliance on Borrower Attestations.--No additional documentation 
beyond the borrower's attestation shall be required to demonstrate 
eligibility under paragraph

    (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 downpayment 
assistance under this Act to a borrower who does not meet the 
eligibility requirements if the creditor does so in good faith reliance 
on borrower attestations of eligibility required by this Act or 
regulation.

SEC. 4. ELIGIBLE HOMES.

    (a) In General.--Assistance from grant amounts under this Act may 
be provided only in connection with the acquisition by a qualified 
homebuyer of a residential property that--

    (1) consists of 1 to 4 dwelling units; and

    (2) will be occupied by the qualified homebuyer, in 
 accordance with such assurances and commitments as the 
 Secretary shall require, as the primary residence of the 
 homebuyer, subject to 

section 3.

    (b) Repayment of Assistance.--

    (1) Requirement.--The Secretary shall require that, if a 
 homebuyer to or on behalf of whom assistance is provided from 
 grant amounts under this Act fails or ceases to occupy the 
 property acquired using such assistance as the primary 
 residence of the homebuyer, except in the case of assistance 
 provided in connection with the purchase of a principal 
 residence through a shared equity homeownership program, the 
 homebuyer shall repay to the State or eligible entity, as 
 applicable, in a proportional amount of the assistance the 
 homebuyer receives based on the number of years they have 
 occupied the eligible home up to 5 years, except that no 
 assistance shall be repaid if the qualified homebuyer occupies 
 the eligible home as a primary residence for 5 years or more.

    (2) Limitation.--Notwithstanding subparagraph
        (A) , a 
 homebuyer to or on behalf of whom assistance is provided from 
 grant amounts under this Act shall not be liable to the State 
 or eligible entity for the repayment of the amount of such 
 shortage if the homebuyer fails or ceases to occupy the 
 property acquired using such assistance as the principal 
 residence of the homebuyer at least in part because of a 
 hardship, or sells the property acquired with such assistance 
 before the expiration of the 60-month period beginning on such 
 date of acquisition and the capital gains from such sale to a 
 bona fide purchaser in an arm's length transaction are less 
 than the amount the homebuyer is required to repay the State or 
 eligible entity under subparagraph
        (A) .

SEC. 5. ELIGIBLE MORTGAGE LOANS.

 Assistance from grant amounts under this Act may be provided only 
in connection with the acquisition of an eligible home involving a 
residential mortgage loan that--

    (1) meets the underwriting requirements and dollar amount 
 limitations for acquisition by the Federal National Mortgage 
 Association or the Federal Home Loan Mortgage Corporation;

    (2) is made, insured, or guaranteed under any program 
 administered by the Secretary;

    (3) is made, insured, or guaranteed by the Rural Housing 
 Administrator of the Department of Agriculture;

    (4) is a qualified mortgage, as such term is defined in 
 

section 129C

    (b)

    (2) of the Truth in Lending Act (15 U.S.C. 
 1639c

    (b)

    (2) ); or

    (5) is guaranteed for the benefit of a veteran.

SEC. 6. HOUSING COUNSELING REQUIREMENT.

    (a) In General.--Except as provided pursuant to 

section 3, 
assistance with grant amounts under this Act may not be provided on 
behalf of qualified homebuyer unless such homebuyer has completed a 
program of counseling with respect to the responsibilities and 
financial management involved in homeownership before entering into a 
sales purchase agreement or loan application, except as provided under 
subsection
            (c) , as the Secretary shall require, provided through a 
counseling agency approved by the Secretary. Such program may be 
delivered in-person, virtually, by telephone, or any other method the 
Secretary determines acceptable and shall include providing information 
on fair housing rights and on the availability of post-purchase housing 
counseling opportunities and instruction on how to file a fair housing 
complaint.

    (b) Alternative Requirement.--The Secretary shall provide that if a 
qualified homebuyer is unable to complete the requirement under 
subsection

    (a) within 30 days due to housing counseling agency capacity 
issues, a State or eligible entity may allow such qualified homebuyer 
to complete alternative homebuyer education to fulfill the requirement 
under subsection

    (a) , including homebuyer education that is provided 
through an online platform, and such qualified homebuyer shall be made 
aware of the availability of post-purchase housing counseling 
opportunities.
            (c) Referral Upon Mortgage Denial.--The Secretary shall require 
that any qualified homebuyer who has completed a counseling program 
referred to in subsection

    (a) or alternative requirement pursuant to 
subsection

    (b) , who receives a commitment for assistance with grant 
amounts under this Act and who applies for an eligible mortgage loan 
for acquisition of an eligible home and is denied such mortgage loan, 
shall be referred to a counseling agency described in subsection

    (a) for counseling relating to such denial and for requalification. An 
eligible homebuyer may be requalified at least one additional time in a 
calendar year, or more as determined by the Secretary.
            (d) Funding.--Of any amounts appropriated to carry out this Act, 
the Secretary shall use not less than 5 percent for costs of providing 
counseling referred to in subsection

    (a) .

SEC. 7. ADMINISTRATIVE COSTS.

 States and eligible entities receiving grant amounts under this Act 
may use a portion of such amounts for administrative costs up to the 
limit specified by the Secretary.

SEC. 8. REPORTS.

    (a) In General.--For each fiscal year during which the Secretary 
makes grants under this Act, the Secretary shall submit to the 
Congress, and make publicly available online in an easily accessible 
location on the website of the Department, a report that shall 
include--

    (1) demographic information regarding applicants for and 
 recipients of assistance provided pursuant to this Act, 
 including race, ethnicity, and gender;

    (2) information regarding the types and amount of 
 assistance provided, including downpayment assistance, 
 assistance with closing costs, and assistance to reduce 
 mortgage loan interest rates; and

    (3) information regarding properties acquired using such 
 assistance, including location, property value, property type, 
 and first mortgage type and investor.
All data shall be disaggregated by ZIP Code or census tract level, 
whichever is most feasible, and demographic information, including 
race, ethnicity, and gender, and any other data points the Secretary 
deems appropriate especially to observe equitable outcomes to ensure 
the program is affirmatively furthering fair housing.

    (b) Capacity Building.--Of any amounts appropriated to carry out 
this Act, the Secretary shall use not more than 1 percent to assist 
States and eligible entities to develop capacity to meet the reporting 
requirements under subsection

    (a) . The Secretary shall encourage States 
and eligible entities to consult with community-based and nonprofit 
organizations that have as their mission to advance fair housing and 
fair lending.
            (c) Privacy Requirements.--

    (1) In general.--Each State and eligible entity that 
 receives a grant under this Act shall establish data privacy 
 and security requirements for the information described in 
 subsection

    (a) that--
        (A) include appropriate measures to ensure that the 
 privacy of the individuals and households is protected;
        (B) provide that the information, including any 
 personally identifiable information, is collected and 
 used only for the purpose of submitting reports under 
 subsection

    (a) ; and
            (C) provide confidentiality protections for data 
 collected about any individuals who are survivors of 
 intimate partner violence, sexual assault, or stalking.

    (2) Statistical research.--
        (A) In general.--The Secretary--
            (i) may provide full and unredacted 
 information provided under subsection

    (a) , 
 including personally identifiable information, 
 for statistical research purposes in accordance 
 with existing law; and
            (ii) may collect and make available for 
 statistical research, at the census tract 
 level, information collected under paragraph

    (1) .
        (B) Application of privacy requirements.--A 
 recipient of information under subparagraph
        (A) shall 
 establish for such information the data privacy and 
 security requirements described in paragraph

    (1) .

SEC. 9. COMPELLING INTEREST STUDY.

 The Secretary, in consultation with the Attorney General, shall 
survey and compile evidence to determine whether or not there is a 
sufficient history of discrimination in housing and, if so, the 
appropriate remedy to redress such historic discrimination. The 
Secretary shall make conclusions and recommendations based on the 
evidence and provide States and eligible entities granted awards under 
this Act an opportunity to modify their programs for assistance under 
this Act according to such recommendations.

SEC. 10. DEFINITIONS.

 For purposes of this Act, the following definitions shall apply:

    (1) Affirmatively further fair housing.--The term 
 ``affirmatively further fair housing'' has the same meaning as 
 defined by the Secretary to implement 

section 808

    (e)

    (5) of the 
 Fair Housing Act (42 U.S.C. 3608

    (e)

    (5) ).

    (2) Eligible entity.--The term ``eligible entity'' means--
        (A) a minority depository institution, as such term 
 is defined in 

section 308 of the Financial Institutions 
 Reform, Recovery, and Enforcement Act of 1989 (12 
 U.S.C. 1463 note);
        (B) a community development financial institution, 
 as such term is defined in 

section 103 of the Riegle 
 Community Development and Regulatory Improvement Act of 
 1994 (12 U.S.C. 4702), that is certified by the 
 Secretary of the Treasury and targets services to 
 minority and low-income populations or provides 
 services in neighborhoods having high concentrations of 
 minority and low-income populations;
            (C) any other nonprofit, mission-driven entity that 
 the Secretary finds has a track record of providing 
 assistance to homeowners, targets services to minority 
 and low-income populations, or provides services in 
 neighborhoods having high concentrations of minority 
 and low-income populations; and
            (D) a unit of general local government, as such 
 term is defined in 

section 102 of the Housing and 
 Community Development Act of 1974 (42 U.S.C. 5302).

    (3) Eligible home.--The term ``eligible home'' means a 
 residential dwelling, including a unit in a condominium or 
 cooperative project or a manufactured housing unit, that meets 
 the requirements of 

section 4.

    (4) Eligible mortgage loan.--The term ``eligible mortgage 
 loan'' means a residential mortgage loan that meets the 
 requirements of 

section 5.

    (5) Heir property.--The term ``heir property'' means 
 residential property for which title passed by operation of law 
 through intestacy and is held by two or more heirs as tenants 
 in common.

    (6) Ownership interest.--The term ``ownership interest'' 
 means any ownership, excluding any interest in heir property, 
 in--
        (A) real estate in fee simple;
        (B) a leasehold on real estate under a lease for 
 not less than 99 years which is renewable; or
            (C) a fee interest in, or long-term leasehold 
 interest in, real estate consisting of a one-family 
 unit in a multifamily project, including a project in 
 which the dwelling units are attached, or are 
 manufactured housing units, semi-detached, or detached, 
 and an undivided interest in the common areas and 
 facilities which serve the project.

    (7) Qualified homebuyer.--The term ``qualified homebuyer'' 
 means a homebuyer who meets the requirements of 

section 3, and 
 includes homebuyers consisting of multiple individuals, co-
 purchasers, and multi-member households.

    (8) Secretary.--The term ``Secretary'' means the Secretary 
 of Housing and Urban Development.

    (9) Shared equity homeownership program.--The term ``shared 
 equity homeownership program'' means affordable homeownership 
 preservation through a resale restriction program administered 
 by a community land trust, other nonprofit organization, or 
 State or local government or instrumentalities.

    (10) Socially and economically disadvantaged individual.--
 The term ``socially and economically disadvantaged individual'' 
 means an individual who meets the following requirements:
        (A) Social disadvantage.--
            (i) In general.--The individual is a member 
 of a socially disadvantaged group, whose 
 members have historically been subjected to 
 racial or ethnic discrimination within the 
 United States because of their identity as 
 members of such group without regard to their 
 individual qualities.
            (ii) Presumption; rebuttal.--An individual 
 identifying as Black, Hispanic, Native 
 American, or Asian-American, or any combination 
 thereof, shall be presumed to be socially 
 disadvantaged for purposes of clause
            (i) . Such 
 presumption may be rebutted with credible 
 evidence to the contrary.
            (iii) Burden of proof.--An individual who 
 does not identify as described in clause
            (ii) shall be required to establish individual 
 social disadvantage for purposes of clause
            (i) by a preponderance of the evidence.
            (iv) Rules.--The Secretary may issue 
 regulations as necessary to establish 
 procedures for complying with this 
 subparagraph.
        (B) Economic disadvantage.--The individual has an 
 income that meets the requirements under 

section 3

    (a) .

    (11) State.--The term ``State'' means any State of the 
 United States, the District of Columbia, the Commonwealth of 
 Puerto Rico, the United States Virgin Islands, Guam, the 
 Commonwealth of the Northern Mariana Islands, American Samoa, 
 and the tribal government of any Indian tribe, as such term is 
 defined in 

section 4 of the Native American Housing Assistance 
 and Self-Determination Act of 1996 (25 U.S.C. 4103).

SEC. 11. IMPLEMENTATION.

 The Secretary shall have the authority to establish by notice or 
mortgagee letter any requirements that the Secretary determines are 
necessary for timely and effective implementation of the program and 
expenditure of funds appropriated, which requirements shall take effect 
upon issuance.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

 There is authorized to be appropriated for grants under this Act 
$100,000,000,000, and any amounts appropriated pursuant to this section 
shall remain available until expended.
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