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March 26, 2026
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Download official Senate Record PDFReturn to issue contextSA 4786. Mr. WARNOCK submitted an amendment intended to be proposed by him to the bill S. 1383, to establish the Veterans Advisory Committee on Equal Access, and for other purposes; which was ordered to lie on the table; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.—This Act may be cited as the
“Downpayment Toward Equity Act of 2026”.
(b) Table of Contents.—The table of contents for this Act
SEC. 2. DEFINITIONS.
In this Act:
(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 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
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 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 under section 5.
(4) Eligible mortgage loan.—The term “eligible mortgage
loan” means a residential mortgage loan that meets the
requirements under section 6.
(5) First-generation homebuyer.—The term “first-
generation homebuyer” means a homebuyer that is—
(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.
(6) Heir property.—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.
(7) 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 1-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.
(8) Qualified homebuyer.—The term “qualified
homebuyer”—
(A) means a homebuyer who meets the requirements of section
4; and
(B) includes homebuyers consisting of multiple individuals,
co-purchasers, and multi-member households.
(9) Secretary.—The term “Secretary” means the Secretary
of Housing and Urban Development.
(10) 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.
(11) 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 4(a).
(12) 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 defined in
section 4 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103).
SEC. 3. FIRST-GENERATION DOWNPAYMENT ASSISTANCE PROGRAM.
(a) Establishment.—The Secretary 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 required under
sections 7(d) and 9(b), any remaining amounts made available
to carry out this Act shall be allocated as follows:
(1) States.—Seventy-five percent of such amounts shall be
allocated among States in accordance with a formula
established by the Secretary, which shall—
(A) take into consideration the best available data to
provide more funding to States with a higher approximate
number of potential qualified homebuyers; and
(B) be adjusted to reflect median area home prices.
(2) Eligible entities.—Twenty-five 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 may
only be used 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) subsidies to make shared equity homes affordable to
homebuyers by discounting the price for which the home will
be sold and to preserve the affordability of the home for
subsequent homebuyers; and
(C) 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,
excluding assistance received pursuant to subsection
(c)(2)(C) for disability related home modifications, except
that the Secretary may increase such maximum limitation
amounts—
(A) for qualified homebuyers who are socially and
economically disadvantaged; or
(B) 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
received 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 to affirmatively further fair housing.
(3) Prohibition of priority or recoupment of funds.—In
selecting qualified homebuyers for assistance with grant
amounts received under this Act, a State or eligible entity
may not—
(A) 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;
or
(B) 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 of 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 funds.
(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. 4. QUALIFIED HOMEBUYERS.
(a) Requirements.—Assistance from grant amounts received
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 defined in
section 104 of the Cranston Gonzalez National Affordable
Housing Act (42 U.S.C. 12704)), except that—
(A) for the purposes of this section, the reference in such
section 104 to title II shall be considered to refer to this
Act; and
(B) 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 homebuyer, as self-
attested by the homebuyer, is a first-generation homebuyer.
(b) Reliance on Borrower Attestations.—No additional
documentation beyond the borrower's attestation shall be
required to demonstrate eligibility under paragraphs (1) and
(2) of subsection (a). 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 section 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 under this Act or by regulation.
SEC. 5. ELIGIBLE HOMES.
(a) In General.—Assistance from grant amounts received
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 4.
(b) Repayment of Assistance.—
(1) Requirement.—If a homebuyer to or on behalf of whom
assistance is provided from grant amounts received 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 Secretary shall require the
homebuyer to 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 paragraph (1), a homebuyer
to or on behalf of whom assistance is provided from grant
amounts received 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 paragraph (1).
SEC. 6. ELIGIBLE MORTGAGE LOANS.
Assistance from grant amounts received under this Act may
only be provided in connection with the acquisition of an
eligible home involving a residential mortgage loan that—
(a) meets the underwriting requirements and dollar amount
limitations for acquisition by the Federal National Mortgage
Association or the Federal Home Loan Mortgage Corporation;
(b) is made, insured, or guaranteed under any program
administered by the Secretary;
(c) is made, insured, or guaranteed by the Department of
Agriculture;
(d) is a qualified mortgage (as defined in section
129C(b)(2) of the Truth in Lending Act (15 U.S.C.
1639c(b)(2))); or
(e) is guaranteed for the benefit of a veteran.
SEC. 7. HOUSING COUNSELING REQUIREMENT.
(a) In General.—Except as provided in section 4,
assistance with grant amounts received 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 such
requirement, 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
refer any qualified homebuyer who has completed a counseling
program referred to in subsection (a) or an alternative
requirement pursuant to subsection (b), who receives a
commitment for assistance with grant amounts received under
this Act, and who applies for an eligible mortgage loan for
acquisition of an eligible home and is denied such mortgage
loan 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 1
additional time in a calendar year, or more frequently, as
determined by the Secretary.
(d) Funding.—The Secretary shall use not less than 5
percent of any amounts appropriated to carry out this Act for
costs of providing counseling referred to in subsection (a).
SEC. 8. 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. 9. REPORTS.
(a) Annual Report.—
(1) In general.—For each fiscal year during which the
Secretary makes grants under this Act, the Secretary shall
submit to Congress, and make publicly available online in an
easily accessible location on the website
of the Department of Housing and Urban Development, a report
that includes—
(A) demographic information regarding applicants for and
recipients of assistance provided pursuant to this Act,
including race, ethnicity, and gender;
(B) 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
(C) information regarding properties acquired using such
assistance, including location, property value, property
type, and first mortgage type and investor.
(2) Disaggregation.—All data included in a report required
under paragraph (1) 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 grant program is affirmatively furthering fair
housing.
(b) Capacity Building.—
(1) In general.—The Secretary shall use not more than 1
percent of any amounts appropriated to carry out this Act to
assist States and eligible entities to develop capacity to
meet the reporting requirements under subsection (a).
(2) Consultation.—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. 10. COMPELLING INTEREST STUDY.
(a) In General.—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.
(b) Recommendations.—The Secretary shall—
(1) make conclusions and recommendations based on the
evidence compiled pursuant to subsection (a); and
(2) provide States and eligible entities granted awards
pursuant to this Act an opportunity to modify their programs
for assistance under this Act according to such
recommendations.
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 grant program authorized under this Act
and the expenditure of funds appropriated, which requirements
shall take effect on the date of issuance of such notice or
letter.
SEC. 12. FUNDING.
The Secretary of the Treasury shall transfer all of the
unobligated balances of amounts previously appropriated under
section 100052 of Public Law 119-21 to the Department of
Housing and Urban Development for grants authorized under
section 4 to carry out the First-Generation Downpayment
Assistance Program. Amounts transferred pursuant to this
section shall remain available for such purpose until
expended.