[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2922 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2922

To establish a downpayment requirement for Rural Housing Service direct 
    and guaranteed single-family home loan programs, to repeal the 
 downpayment assistance initiative under subtitle E of title II of the 
Cranston-Gonzalez National Affordable Housing Act, and to prohibit use 
   of amounts provided under certain other programs for downpayment 
                              assistance.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 17, 2009

  Mr. Flake introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To establish a downpayment requirement for Rural Housing Service direct 
    and guaranteed single-family home loan programs, to repeal the 
 downpayment assistance initiative under subtitle E of title II of the 
Cranston-Gonzalez National Affordable Housing Act, and to prohibit use 
   of amounts provided under certain other programs for downpayment 
                              assistance.

    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 ``Federal Assistance Downpayment 
Reform Act of 2009''.

SEC. 2. DOWNPAYMENT REQUIREMENT FOR RURAL HOUSING SERVICE SINGLE-FAMILY 
              HOME LOAN PROGRAMS.

    Section 501 of the Housing Act of 1949 (42 U.S.C. 1471) is amended 
by adding at the end the following new subsection:
    ``(k) Downpayment Requirement.--The Secretary may not make a loan 
under section 502 to any borrower, or provide a guarantee under section 
502(h) for any loan to any borrower, unless the borrower under the loan 
has paid, in cash or its equivalent, on account of the property to be 
acquired or refinanced with the proceeds of such loan an amount equal 
to not less than 3.5 percent of the appraised value of the property or 
such larger amount as the Secretary may determine.''.

SEC. 3. REPEAL OF DOWNPAYMENT ASSISTANCE INITIATIVE.

    Title II of the Cranston-Gonzalez National Affordable Housing Act 
is amended by striking subtitle E (42 U.S.C. 12821 et seq.).

SEC. 4. PROHIBITION OF USE OF CERTAIN FUNDS FOR DOWNPAYMENT ASSISTANCE.

    (a) Community Development Block Grant Program.--Section 105 of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5305) is 
amended by adding at the end the following new subsection:
    ``(i) Prohibition on Use of Assistance for Downpayments.--
Notwithstanding any other provision of law (including subparagraph (D) 
of section 105(a)(25) of this title, as in effect pursuant to Public 
Law 104-204 (110 Stat. 2887)), no amount from a grant made under this 
title may be used to provide downpayment assistance on behalf of any 
family or person for the acquisition of a residence.''.
    (b) Neighborhood Stabilization Program.--Subsection (d) of section 
2301 of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 
note) is amended by adding at the end the following new paragraph:
            ``(4) Prohibition on use of assistance for downpayments.--
        Notwithstanding any other provision of law, no amounts made 
        available under this section may be used to provide downpayment 
        assistance on behalf of any family or person for the 
        acquisition of a residence.''.
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