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Creates a HUD pilot program that gives grants to states and Indian tribes to seed revolving down-payment loan funds. These loans cover 3%–20% of a home’s purchase price, cap amounts by high/medium/low cost areas, and require repayment of principal plus a share of any home appreciation when the home is sold, so funds recycle for future borrowers. Grantees must use grant money to capitalize state/tribal loan funds, limit administrative spending, follow eligibility rules (citizens/permanent residents, first-time or first-generation buyers, income limits, counseling), report data to HUD, and operate the program within one year of enactment; funding is authorized for FY2026–FY2030 as needed.
The bill expands down-payment assistance for low- and moderate-income buyers and tribal communities via a revolving, appreciation-sharing program that can sustain local aid, but caps, appreciation repayment, administrative burdens, and uncertain federal funding could limit reach and reduce benefits for some homeowners and grantees.
Low- and moderate-income buyers (≤150% area median) can access 3–20% down-payment loans, lowering upfront cash barriers to homeownership.
Assistance is structured so repaid appreciation shares feed a revolving loan fund, meaning dollars are partly self-replenishing and can be reused locally to sustain future down-payment aid.
Grants are allocated proportional to State and tribal population and explicitly include Indian tribes and tribal housing agencies, helping distribute funds across states and tribal areas and supporting tribal communities.
Homeowners who sell an appreciated home must share a portion of the appreciation, reducing the capital gain they realize compared with a fully forgiven grant.
Maximum assistance caps ($50,000–$150,000) may be insufficient to cover needed down payments in high-cost housing markets, limiting the program's usefulness for many eligible buyers.
The bill authorizes 'such sums as necessary' without specifying appropriations, leaving program funding levels and scale dependent on future appropriations decisions and creating uncertainty for states and applicants.
Introduced June 17, 2025 by Salud Carbajal · Last progress June 17, 2025