,i #aagth ,,congress #b;d ,session ,h4 ,r4 #hcdj ,,in ,,the ,,house ,,of ,,representatives ,july #ab1 #bjbb,mr4 ,swalwell 7for himself and ,mrs4 ,hayes7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to direct the ,secretary of ,education to award grants to provide financial assistance to certain educators to make down payments on certain homes1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,educator ,down ,payment ,assistance ,act of #bjbb4 #b4 ,first-time homebuyer down payment assistance program 7a7 ,establishment ,the ,secretary of ,education shall award grants1 on a competitive basis1 to eligible entities to award subgrants to eligible educators in accordance with subsection 7d74 7b7 ,application ,an eligible entity seeking a grant under this section shall submit to the ,secretary an application in such form1 at such time1 and containing such information as the ,secretary determines appropriate1 including an assurance that such entity will utilize an existing1 or establish a new1 down payment assistance program to award subgrants to eligible educators4 7c7 ,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 agency1 the ,secretary may only award a grant to #a such entity in such geographic area4 7d7 ,subgrants 7#a7 ,in general ,an eligible entity that receives a grant under subsection 7a7 shall use such grant funds to award subgrants to eligible educators4 7#b7 ,application ,an eligible educator seeking a subgrant under this subsection shall submit to the eligible entity an application in such form1 at such time1 and containing such information as the eligible entity determines appropriate1 including an assurance that such educator will-- 7,a7 complete the housing counseling required under paragraph 7#h72 and 7,b7 use an eligible residential mortgage loan to purchase an eligible dwelling4 7#c7 ,subgrant uses ,an eligible educator that receives a subgrant under this subsection shall use such subgrant funds to pay1 with respect to the purchase of an eligible dwelling using an eligible residential mortgage loan1 for-- 7,a7 direct down payment costs associated with such purchase2 7,b7 closing costs associated with such purchase2 and 7,c7 costs related to reducing the rates of interest on such eligible residential mortgage loan associated with such purchase4 7#d7 ,subgrant amount 7,a7 ,in general ,except as provided under subparagraph 7,b71 a subgrant awarded under this subsection may not exceed #be1jjj4 7,b7 ,exception ,in the case of an eligible educator purchasing an eligible dwelling that is located in a high-cost area 7as determined by the ,secretary based on area median income71 a subgrant awarded under this subsection may exceed #be1jjj4 7#e7 ,subgrant limit ,an eligible educator may only receive #a subgrant under this subsection4 7#f7 ,additional funds ,an eligible entity may award a subgrant under this subsection to an eligible educator who is receiving funds from other sources1 including other ,state1 ,federal1 local1 private1 public1 and nonprofit sources1 for the purpose of purchasing an eligible dwelling4 7#g7 ,occupancy requirement 7,a7 ,in general ,an eligible educator who is awarded a subgrant under this subsection and makes a down payment on an eligible dwelling with such subgrant funds shall use such dwelling as a primary residence for a period of not less than #c years4 7,b7 ,enforcement 7i7 ,return of funds ,an eligible educator who does not comply with the requirement under subparagraph 7,a7 shall return to the eligible entity the total amount of the subgrant funds awarded to such educator under this subsection4 7ii7 ,timing ,such funds shall be returned in accordance with clause 7i7 not later than #a year after such educator ceases to use such dwelling as a primary residence in violation of the requirement under subparagraph 7,a74 7iii7 ,exception ,an eligible educator who does not comply with the requirement under subparagraph 7,a7 due to an emergency event shall not be required to return subgrant funds under clause 7i74 7#h7 ,housing counseling requirement 7,a7 ,in general ,an eligible educator shall provide to the eligible entity1 in accordance with clause 7iii71 proof of completion of a program of housing counseling that-- 7i7 is offered-- 7,i7 by a housing counseling agency that is approved by the ,department of ,housing and ,urban ,development2 and 7,,ii7 in person1 virtually1 by telephone1 or by any other method determined by the ,secretary to be acceptable2 7ii7 includes information with respect to-- 7,i7 the responsibilities and financial management required with respect to owning a home2 and 7,,ii7 fair housing rights and how to file a fair housing complaint2 and 7iii7 is completed prior to filling out a loan application or entering into a sales purchase agreement4 7,b7 ,funding ,the ,secretary shall reserve not less than #e percent of the funds made available to carry out this section to pay for the costs of the housing counseling required under subparagraph 7,a7 for eligible educators4 7e7 ,definitions ,in this section3 7#a7 ,eligible dwelling 7,a7 ,in general ,the term eligible dwelling means a residential property1 an apartment1 a condominium1 or a manufactured dwelling unit4 7,b7 ,limitation ,an eligible dwelling does not include a residential property that contains more than #d dwelling units4 7#b7 ,eligible educator ,the term eligible educator means a public elementary or secondary school teacher1 principal1 paraprofessional1 school leader1 or other staff who-- 7,a7 is a first-time homebuyer2 7,b7 has served in their position or another position in the educational system for not less than a total of #c years 7without regard to whether such years were consecutive72 7,c7 has a qualifying income2 and 7,d7 is in good standing4 7#c7 ,eligible entity ,the term eligible entity means-- 7,a7 a unit of local government2 7,b7 a ,state housing finance agency2 or 7,c7 a local educational agency4 7#d7 ,eligible residential mortgage loan ,the term eligible residential mortgage loan means a residential mortgage loan that-- 7,a7 meets the underwriting requirements and dollar amount limitations for acquisition by the ,federal ,national ,mortgage ,association or the ,federal ,home ,loan ,mortgage ,corporation2 7,b7 is made1 insured1 or guaranteed under title ,,ii of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjg et seq47 or title ,v of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adga et seq472 7,c7 is a qualified mortgage1 as such term is defined in section #abi;,c7b77#b7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;c7b77#b772 7,d7 is made1 insured1 or guaranteed under chapter #cg of title #ch1 ,united ,states ,code2 or 7,e7 is guaranteed under section #ahd of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#ac;a74 7#e7 ,emergency event ,the term emergency event includes-- 7,a7 military deployment2 7,b7 divorce2 7,c7 death of an eligible educator or spouse2 and 7,d7 other similar unforeseen events as determined by the ,secretary4 7#f7 ,,esea terms ,the terms elementary school1 local educational agency1 other staff1 secondary school1 and ,secretary have the meanings given such terms in section #haja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja74 7#g7 ,first-time homebuyer ,the term first-time homebuyer has the meaning given such term in section #ib4b of title #bd1 ,code of ,federal ,regulations 7as in effect on the date of the enactment of this ,act71 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 section4 7#h7 ,good standing 7,a7 ,in general ,the term good standing means that1 with respect to an eligible educator and for the period described in subparagraph 7,b71 such educator has not received disciplinary action from the local educational agency that serves the school at which such educator works as an educator4 7,b7 ,period ,the period described in subparagraph 7,a7-- 7i7 begins on the date that is #c years before the date described in clause 7ii72 and 7ii7 ends on the date on which such educator submits an application under subsection 7c74 7#i7 ,qualifying income 7,a7 ,in general ,the term qualifying income means1 except as provided in subparagraph 7,b71 an income that does not exceed #abj percent of the area median income in which the eligible dwelling to be purchased is located4 7,b7 ,high-cost area ,if the ,secretary makes a determination that an area described in subparagraph 7,a7 is a high-cost area1 the qualifying income shall be an income that does not exceed #ahj percent of the median income of such area4