Last progress March 11, 2025 (9 months ago)
Introduced on March 11, 2025 by Teresa Leger Fernandez
Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
This bill would set up a new grant program at the Department of Housing and Urban Development to help people buy homes. Within one year, HUD would send money to states and Indian tribes (3% set aside for tribes) to give $30,000, one-time grants to eligible homebuyers. The grants can cover down payments, closing costs, interest-rate buy-downs, and needed fixes before moving in, including accessibility changes for a household member with a disability. Grants can be combined with other aid and are not counted as taxable income. They also won’t be treated as a “prohibited source” for FHA down payment rules.
If a buyer doesn’t live in the home as their primary residence for five years, they may have to pay back part of the grant, unless there’s a hardship or they sell at a loss. States or tribes can place a lien to recover funds, and any recaptured money must be used to help other buyers. Before getting help, buyers must complete a homeownership counseling program. States must file an annual plan and route at least 25% of funds through community development financial institutions; tribes file annual plans too and may give preference to their members. Both can partner with nonprofits and CDFIs to deliver the aid. The bill authorizes $6.7 billion per year for 2026–2030, with limits on administrative costs (7% for states, 10% for tribes; HUD may use up to 3% for training and technical help) .
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