[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4261 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 4261

   To direct the Secretary of Housing and Urban Development to award 
  grants to provide financial assistance to certain educators to make 
        down payments on certain homes, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 2, 2024

 Mr. Heinrich introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To direct the Secretary of Housing and Urban Development to award 
  grants to provide financial assistance to certain educators to make 
        down payments on certain homes, and for other purposes.

    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 ``Educator Down Payment Assistance Act 
of 2024''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Eligible dwelling.--The term ``eligible dwelling'' 
        means a residential property with--
                    (A) not more than 4 dwelling units;
                    (B) an apartment;
                    (C) a condominium; or
                    (D) a manufactured dwelling unit.
            (2) Eligible educator.--The term ``eligible educator'' 
        means a public elementary or secondary school teacher, 
        principal, paraprofessional, school leader, or other staff 
        who--
                    (A) is a first-time homebuyer;
                    (B) has served in their position or another 
                position in the educational system for not fewer than a 
                total of 3 years (without regard to whether such years 
                were consecutive);
                    (C) has a qualifying income; and
                    (D) is in good standing.
            (3) Eligible entity.--The term ``eligible entity'' means--
                    (A) a unit of local government;
                    (B) a State housing finance agency; or
                    (C) a local educational agency.
            (4) Eligible residential mortgage loan.--The term 
        ``eligible residential mortgage loan'' means 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 title II 
                of the National Housing Act (12 U.S.C. 1707 et seq.) or 
                title V of the Housing Act of 1949 (42 U.S.C. 1471 et 
                seq.);
                    (C) is made, insured, or guaranteed under title 
                VIII of the Native American Housing Assistance and 
                Self-Determination Act of 1996 (25 U.S.C. 4221 et 
                seq.);
                    (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 under section 184 of the Housing 
                and Community Development Act of 1992 (12 U.S.C. 1715z-
                13a).
            (5) Emergency event.--The term ``emergency event'' 
        includes--
                    (A) military deployment;
                    (B) divorce;
                    (C) death of an eligible educator or spouse; and
                    (D) other similar unforeseen events as determined 
                by the Secretary.
            (6) ESEA terms.--The terms ``elementary school'', ``local 
        educational agency'', ``other staff'', ``secondary school'', 
        and ``Secretary'' have the meanings given such terms in section 
        8101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            (7) First-time homebuyer.--The term ``first-time 
        homebuyer'' has the meaning given the term in section 92.2 of 
        title 24, Code of Federal Regulations (as in effect on the date 
        of the enactment of this Act), except that any reference in 
        such section to the American Dream Downpayment Initiative shall 
        be deemed to be a reference to the grant program established 
        under this section.
            (8) Good standing.--The term ``good standing'' means that, 
        with respect to an eligible educator and during the 3-year 
        period beginning on the date on which the educator submits an 
        application under section 3(b), such educator has not received 
        disciplinary action from the local educational agency that 
        serves the school at which such educator works as an educator.
            (9) Qualifying income.--The term ``qualifying income'' 
        means--
                    (A) an income that is not greater than 120 percent 
                of the area median income in which the eligible 
                dwelling to be purchased is located; and
                    (B) if the Secretary determines that the area 
                described in subparagraph (A) is a high-cost area, an 
                income that is not greater than 180 percent of the 
                median income of such area.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 3. FIRST-TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM.

    (a) Establishment.--The Secretary of Housing and Urban Development 
shall award grants, on a competitive basis, to eligible entities to 
provide financial assistance to eligible educators in accordance with 
subsection (d).
    (b) Application.--An eligible entity seeking a grant under this 
section shall submit to the Secretary an application in such form, at 
such time, and containing such information as the Secretary determines 
appropriate, including an assurance that such entity will use an 
existing, or establish a new, down payment assistance program to 
provide financial assistance to eligible educators.
    (c) Geographic Areas.--In the case of a geographic area that is 
served by an eligible entity that is a unit of local government and an 
eligible entity that is a local educational agency, the Secretary may 
only award a grant to 1 such entity in such geographic area.
    (d) Use of Amounts To Provide Financial Assistance.--
            (1) In general.--An eligible entity that receives a grant 
        under subsection (a) shall use such grant funds to provide 
        financial assistance to eligible educators.
            (2) Application.--An eligible educator seeking a financial 
        assistance under this subsection shall submit to the eligible 
        entity an application in such form, at such time, and 
        containing such information as the eligible entity determines 
        appropriate, including an assurance that such educator will--
                    (A) complete the housing counseling required under 
                paragraph (8); and
                    (B) use an eligible residential mortgage loan to 
                purchase an eligible dwelling.
            (3) Use of financial assistance.--An eligible educator who 
        receives financial assistance under this subsection shall use 
        such financial assistance to pay, with respect to the purchase 
        of an eligible dwelling using an eligible residential mortgage 
        loan, for--
                    (A) direct down payment costs associated with such 
                purchase;
                    (B) closing costs associated with such purchase; 
                and
                    (C) costs related to reducing the rates of interest 
                on such eligible residential mortgage loan associated 
                with such purchase.
            (4) Amount of financial assistance.--
                    (A) In general.--Except as provided under 
                subparagraph (B), the amount of financial assistance 
                awarded to an eligible educator under this subsection 
                may not be greater than $25,000.
                    (B) Exception.--In the case of an eligible educator 
                purchasing an eligible dwelling that is located in an 
                area described in section 305(a)(2) of the Federal Home 
                Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), 
                the amount of financial assistance awarded to an 
                eligible educator under this subsection may be greater 
                than $25,000.
            (5) Limitation.--An eligible educator may only receive 
        financial assistance under this subsection 1 time.
            (6) Additional funds.--An eligible entity may award 
        financial assistance under this subsection to an eligible 
        educator who is receiving funds from other sources, including 
        other State, Federal, local, private, public, and nonprofit 
        sources, for the purpose of purchasing an eligible dwelling.
            (7) Occupancy requirement.--
                    (A) In general.--An eligible educator who is 
                awarded financial assistance under this subsection 
                shall use the eligible dwelling purchased using such 
                financial assistance as a primary residence for a 
                period of not fewer than 3 years beginning on the date 
                on which the eligible educator receives financial 
                assistance under this subsection.
                    (B) Enforcement.--
                            (i) Return of funds.--An eligible educator 
                        who does not comply with the requirement under 
                        subparagraph (A) shall return to the eligible 
                        entity the total amount of the financial 
                        assistance awarded to such educator under this 
                        subsection.
                            (ii) Timing.--Such funds shall be returned 
                        in accordance with clause (i) not later than 1 
                        year after such educator ceases to use such 
                        dwelling as a primary residence in violation of 
                        the requirement under subparagraph (A).
                            (iii) Exception.--An eligible educator who 
                        does not comply with the requirement under 
                        subparagraph (A) due to an emergency event 
                        shall not be required to return financial 
                        assistance under clause (i).
            (8) Service requirement.--
                    (A) In general.--An eligible educator who is 
                awarded financial assistance under this subsection 
                shall be required by the Secretary to continue in their 
                role as a public elementary or secondary school 
                teacher, principal, paraprofessional, school leader, or 
                other staff for not less than 3 years after the date on 
                which the eligible educator is awarded financial 
                assistance.
                    (B) Exception.--Subparagraph (A) shall not apply if 
                an eligible educator is a military spouse, as defined 
                in section 45AA(d)(1) of the Internal Revenue Code of 
                1986.
    (e) Reporting Requirements.--The Secretary shall submit to Congress 
an annual report that includes include a breakdown of financial 
assistance provided under this section, by demographic breakdown, mean 
income, and mean purchase price.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $30,000,000 for each of fiscal 
years 2025 through 2030.
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