[Congressional Record Volume 148, Number 72 (Wednesday, June 5, 2002)]
[Senate]
[Pages S5049-S5050]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ALLARD (for himself, Mr. Miller, and Mr. Crapo):
  S. 2584. A bill to support certain housing proposals in the fiscal 
year 2003 budget for the Federal Government, including the downpayment 
assistance initiative under the HOME Investment Partnerships Act, and 
for other purposes; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. ALLARD. Mr. President, I rise to introduce the American Dream 
Downpayment Act, which will help thousands of families achieve the 
American Dream of homeownership. The rate of homeownership in the 
United States has risen steadily over the past few years. However, for 
many working families, low-income families, women-headed households, 
minorities, urban dwellers and young families the dream of 
homeownership remains elusive.
  While Americans enjoy the world's greatest opportunities for becoming 
homeowners, only 46 percent of African-American and Hispanic families 
own their homes as compared to 74 percent of non-Hispanic whites who 
own their homes. For many of these families, the biggest barrier to 
homeownership is their inability to afford downpayment requirements and 
closing costs.
  To help eliminate the gaps in homeownership achievement, I am 
introducing the American Dream Downpayment Act. This legislation will 
help 40,000 families annually, focusing on low-income families who are 
first-time homebuyers. The American Dream Downpayment Fund will provide 
communities across America with $200 million in grants to help 
homebuyers with the downpayment and closing costs.
  The American Dream Downpayment Fund, which will be administered as a 
part of HUD's existing HOME Investment Partnerships Program, HOME, will 
make more than 400 State and local governments eligible to receive the 
$200 million in grant funding to help more families achieve the 
American Dream of homeownership.
  The positive effects of homeownership exist on many levels: 
homeownership has public benefits in the form of neighborhood 
stability, individual benefits in the form of the financial rewards 
that come from the appreciation of equity in a home over time, and 
personal benefits that stem from the satisfaction of attaining a goal, 
the pride of ownership, and a greater sense of security. In addition to 
these affirmative impacts of homeownership, the Homeownership Alliance 
released findings of a study revealing that children living in owned 
homes had nine percent higher achievement in mathematics and

[[Page S5050]]

seven percent higher achievement in reading.
  I look forward to working with my colleagues in the Senate on the 
American Dream Downpayment Act. I believe this legislation will be 
critical in helping more families achieve the American Dream of 
homeownership.
  I ask unanimous consent the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2584

       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 ``American Dream Downpayment 
     Act''.

     SEC. 2. DOWNPAYMENT ASSISTANCE INITIATIVE UNDER HOME PROGRAM.

       (a) Downpayment Assistance Initiative.--Subtitle E of title 
     II of the Cranston-Gonzalez National Affordable Housing Act 
     (42 U.S.C. 12821) is amended to read as follows:

                     ``Subtitle E--Other Assistance

     ``SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.

       ``(a) Grant Authority.--The Secretary may make grants to 
     participating jurisdictions to assist low-income families to 
     achieve homeownership, in accordance with this section.
       ``(b) Eligible Activities.--
       ``(1) In general.--Grants made under this section may be 
     used only for downpayment assistance toward the purchase of 
     single family housing by low-income families who are first-
     time homebuyers.
       ``(2) Definition.--For purposes of this subtitle, the term 
     `downpayment assistance' means assistance to help a family 
     acquire a principal residence.
       ``(c) Housing Strategy.--To be eligible to receive a grant 
     under this section for a fiscal year, a participating 
     jurisdiction shall include in its comprehensive housing 
     affordability strategy submitted under section 105 for such 
     year, a description of the use of the grant amounts.
       ``(d) Formula Allocation.--
       ``(1) In general.--For each fiscal year, the Secretary 
     shall allocate any amounts made available for assistance 
     under this section for the fiscal year in accordance with a 
     formula, established by the Secretary, that considers a 
     participating jurisdiction's need for and prior commitment to 
     assistance to homebuyers.
       ``(2) Allocation amounts.--The formula referred to in 
     paragraph (1) may include minimum and maximum allocation 
     amounts.
       ``(e) Reallocation.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     any amounts allocated to a participating jurisdiction under 
     this section become available for reallocation, the amounts 
     shall be reallocated to other participating jurisdictions in 
     accordance with the formula established pursuant to 
     subsection (d).
       ``(2) Exception.--If a local participating jurisdiction 
     failed to receive amounts allocated under this section and is 
     located in a State that is a participating jurisdiction, the 
     funds shall be reallocated to the State.
       ``(f) Applicability of Other Provisions.--
       ``(1) In general.--Except as otherwise provided in this 
     section, grants made under this section shall not be subject 
     to the provisions of this title.
       ``(2) Applicable provisions.--In addition to the 
     requirements of this section, grants made under this section 
     shall be subject to the provisions of title I, sections 
     215(b), 218, 219, 221, 223, 224, and 226(a) of subtitle A of 
     this title, and subtitle F of this title.
       ``(3) References.--In applying the requirements of subtitle 
     A referred to in paragraph (2)--
       ``(A) any references to funds under subtitle A shall be 
     considered to refer to amounts made available for assistance 
     under this section; and
       ``(B) any references to funds allocated or reallocated 
     under section 217 or 217(d) shall be considered to refer to 
     amounts allocated or reallocated under subsection (d) or (e) 
     of this section, respectively.
       ``(g) Administrative Costs.--Notwithstanding section 
     212(c), a participating jurisdiction may use funds under 
     subtitle A for administrative and planning costs of the 
     jurisdiction in carrying out this section, and the limitation 
     in section 212(c) shall be based on the total amount of funds 
     available under subtitle A and this section.
       ``(h) Funding.--
       ``(1) Fiscal year 2002.--This section constitutes the 
     subsequent legislation authorizing the Downpayment Assistance 
     Initiative referred to in the item relating to the `HOME 
     Investment Partnerships Program' in title II of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     2002 (Public Law 107-73; 115 Stat. 666).
       ``(2) Subsequent fiscal years.--There is authorized to be 
     appropriated to carry out this section $200,000,000 for each 
     of fiscal years 2003 through 2006.''.
       (b) Relocation Assistance and Downpayment Assistance.--
     Subtitle F of title II of the Cranston-Gonzalez National 
     Affordable Housing Act is amended by inserting after section 
     290 (42 U.S.C. 12840) the following:

     ``SEC. 291. RELOCATION ASSISTANCE AND DOWNPAYMENT ASSISTANCE.

       ``The Uniform Relocation Assistance and Real Property 
     Acquisition Policies Act of 1970 shall not apply to 
     downpayment assistance under this title.''.

     SEC. 3. REAUTHORIZATION OF SHOP PROGRAM.

       Section 11(p) of the Housing Opportunity Program Extension 
     Act of 1996 (42 U.S.C. 12805 note) is amended by striking 
     ``such sums as may be necessary for fiscal year 2001'' and 
     inserting ``$65,000,000 for fiscal year 2003 and such sums as 
     may be necessary for fiscal year 2004''.

     SEC. 4. REAUTHORIZATION OF HOPE VI PROGRAM.

       (a) Authorization of Appropriations.--Section 24(m)(1) of 
     the United States Housing Act of 1937 (42 U.S.C. 1437v(m)(1)) 
     is amended by striking ``$600,000,000'' and all that follows 
     through ``2002'' and inserting the following: ``$574,000,000 
     for fiscal year 2003''.
       (b) Sunset.--Section 24(n) of the United States Housing Act 
     of 1937 (42 U.S.C. 1437v(n)) is amended by striking 
     ``September 30, 2002'' and inserting ``September 30, 2003''.
                                 ______