Sponsors (14)
The bill expands and targets federal homeownership assistance—providing sizable, predictable grants, broader eligibility, and stronger tribal access while imposing new administrative rules and federal costs that may leave some high‑cost-area buyers, heirs, and capacity-constrained grantees underserved.
Low- and moderate-income first-time buyers and renters can receive direct grants (up to $30,000) for downpayment, closing, interest-rate buy‑downs, or pre-occupancy repairs; those grants are excluded from recipients' gross income and repaid funds are recycled to help other eligible local households.
States and Indian Tribes are provided predictable federal funding ($6.7 billion per year FY2026–FY2030) with caps that limit federal training/technical assistance (3%) and constrain grantee overhead (7% state, 10% tribal), aiming to maximize funds that reach households and local programs.
At least 25% of state-distributed funds must flow through community development financial institutions (CDFIs), and States/Tribes may contract with approved nonprofits, TDHEs, intertribal consortia, or CDFIs—expanding local delivery channels and access to flexible, community-based financing.
Taxpayers ultimately fund the program (authorized at $6.7 billion per year), increasing federal spending obligations and potentially crowding out other priorities or adding budgetary pressure.
The $30,000 per-household cap (and the 120% AMI income limit) may be insufficient in high‑cost housing markets, leaving many households—especially in expensive metro areas—still unable to cover required downpayments or qualify without additional support.
Administrative rules and limits (required annual plans, counselor approvals, reporting, and caps on state/tribal admin) plus the 25% CDFI mandate could strain grantee capacity, reduce flexibility for local program design, and increase implementation costs.
Based on analysis of 6 sections of legislative text.
Creates a HUD-funded grant program giving eligible first-time buyers a one-time payment (up to $30,000) to help purchase eligible homes, with counseling, occupancy rules, and $6.7B/year authorized FY2026–2030.
Introduced March 11, 2025 by Teresa Leger Fernandez · Last progress March 11, 2025
Provides federal grants to States and Indian tribes so eligible first-time buyers can get up to $30,000 once to help buy and repair a home. HUD must set up the program within one year, reserve 3% of funds for tribes under the NAHASDA formula, require counseling before assistance, limit how funds are used, and set recapture rules if the buyer doesn’t live in the home for at least five years. The bill authorizes $6.7 billion per year for FY2026–FY2030 and caps administrative uses for states, tribes, and federal training and technical assistance.