[Congressional Record Volume 149, Number 56 (Tuesday, April 8, 2003)]
[Senate]
[Pages S4959-S4960]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ALLARD (for himself and Mr. Sessions):
  S. 811. 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 Partnership Act, and 
for other purposes; to the Committee on the Judiciary.
  Mr. ALLARD. Mr. President, I rise today to introduce the American 
Dream Downpayment Act. I am pleased to have Senator Sessions join me in 
introducing this bill.
  Homeownership has long been the American dream, and we are incredibly 
fortunate that in America more and more families have been able to 
achieve the dream of homeownership. In fact, right now more American 
families own their home than ever before, and that number continues to 
increase.
  However, for some working families, low income families, women-headed 
households, minority families, urban dwellers, and young families the 
dream of homeownership remains elusive.
  This is particularly true for minority families. While Americans 
enjoy the world's greatest opportunities for becoming homeowners, only 
47 percent of African-American and Hispanic families own their homes, 
as compared to 75 percent of white families.
  We must eliminate this gap in homeownership, so I am pleased to join 
with President Bush and Secretary Martinez in the initiative to create 
5.5 million new minority homeowner families by the end of the decade.
  One key component of this initiative is the American Dream 
Downpayment Initiative, which I am pleased to introduced today in the 
Senate. This bill will provide $200 million annually to State and local 
governments for downpayment assistance programs.
  One of the greatest barriers for families in becoming homeowners is 
their inability to afford the downpayment requirements and closing 
costs. These are hard working families that can make mortgage payments, 
they simply need assistance with the downpayment and closing costs.
  The American Dream Downpayment Initiative will create 40,000 new 
homeowners each year, focusing on low-income and first-time homebuyers. 
And because the initiative will be administered through HUD's existing 
HOME program, it will minimize bureaucracy and duplication while 
maximizing flexibility for local jurisdictions.
  Homeownership has many benefits for cities, neighborhood, and 
families. In fact, a study released by the Homeownership Alliance 
revealed that children living in an owned home scored nine percent 
higher on math tests and seven percent higher in reading achievement.
  Homeownership has the power to transform individual lives and to

[[Page S4960]]

strengthen entire communities. Increasing homeownership, particularly 
among minorities, is a top goal for me.
  The $200 million for the American Dream Downpayment Fund will help 
make that dream come true for more American families.
  I look forward to the opportunity to working with my colleagues to 
get the American Dream Downpayment Initiative enacted into law.
  I ask unanimous consent that 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. 811

       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 Act of 1970 (84 Stat. 1894) shall not apply to 
     downpayment assistance under this title.''.
                                 ______