,,ii #aagth ,,congress #ast ,session ,s4 #bibj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #cj1 #bjba,mr4 ,warnock 7for himself1 ,mr4 ,brown1 ,mr4 ,kaine1 ,mr4 ,van ,hollen1 ,ms4 ,warren1 and ,mr4 ,warner7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to provide downpayment assistance to first-generation homebuyers to address multigenerational inequities in access to homeownership and to narrow and ultimately close the racial homeownership gap in the ,united ,states1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,downpayment ,toward ,equity ,act of #bjba4 #b4 ,first-generation downpayment assistance downpayment program 7a7 ,establishment ,the ,secretary of ,housing and ,urban ,development shall carry out a program under this ,act to provide grants to ,states and eligible entities to provide financial assistance under this ,act to first-generation homebuyers to assist them with acquiring owner-occupied primary residences4 7b7 ,allocation ,after reserving amounts as required under sections #f7;d7 and #h7;b71 any remaining amounts made available to carry out this ,act shall be allocated as follows3 7#a7 ,states ,seventy-five percent of such amounts shall be allocated among ,states in accordance with a formula established by the ,secretary1 which shall take into consideration-- 7,a7 adult population size 7excluding existing homeowners72 7,b7 median area home prices2 and 7,c7 racial disparities in homeownership rates4 7#b7 ,eligible entities ,twenty-five percent of such amounts shall be made available only to eligible entities on a competitive basis4 7c7 ,assistance ,amounts from a grant under this ,act shall be used only to provide assistance-- 7#a7 on behalf of a qualified homebuyer2 and 7#b7 for-- 7,a7 costs in connection with the acquisition1 involving an eligible mortgage loan1 of an eligible home1 including downpayment costs1 closing costs1 and costs to reduce the rates of interest on eligible mortgage loans2 7,b7 subsidies to make shared equity homes affordable to eligible homebuyers by discounting the price for which the home will be sold and to preserve the home's affordability for subsequent eligible buyers2 and 7,c7 pre-occupancy home modifications required to accommodate qualified homebuyers or members of their household with disabilities4 7d7 ,amount ,a grant of assistance under this ,act-- 7#a7 may be provided on behalf of any qualified homebuyer only once2 and 7#b7 may not exceed #bj1jjj1 or #be1jjj in the case of a qualified homebuyer who is a socially and economically disadvantaged individual1 except that the ,secretary may increase such maximum limitation amounts in the case of qualified homebuyers acquiring residences located in high-cost areas1 as determined based on median home prices or prices of residences under a shared equity homeownership program4 7e7 ,layering of assistance ,assistance from grant amounts under this ,act may be provided on behalf of a qualified homebuyer who is receiving assistance from other sources1 including other ,state1 ,federal1 local1 private1 public1 and nonprofit sources1 for acquisition of an eligible home4 7f7 ,state administration 7#a7 ,in general ,the ,secretary shall require that each ,state receiving grant amounts under this ,act administer the program to provide assistance with such amounts through the ,state housing finance agency for the ,state or such other housing agency of the ,state as the ,secretary finds appropriate1 except that any such agency may1 at the option of the agency1 contract with a nonprofit entity1 including a housing counseling agency approved by the ,secretary1 to administer such assistance4 7#b7 ,affirmatively furthering fair housing ,for a ,state to be eligible for a grant under this ,act1 the ,state shall be in compliance with the ,secretary's regulations implementing the requirement under section #hjh7;e77#e7 of the ,fair ,housing ,act 7#db ,u4,s4,c4 #cfjh7;e77#e77 to affirmatively further fair housing4 7#c7 ,prohibition of priority ,in selecting qualified homebuyers for assistance with grant amounts under this ,act1 a ,state or eligible entity may not provide any priority or preference for homebuyers who are acquiring eligible homes with a mortgage loan made1 insured1 guaranteed1 or otherwise assisted by the ,state housing finance agency for the ,state1 any other housing agency of the ,state1 or an eligible entity when applicable4 7g7 ,reallocation of ,state amounts ,the ,secretary shall reallocate any grant funds under this ,act allocated for a fiscal year that remain unused at the end of such fiscal year among ,states and eligible entities that demonstrate to the ,secretary the capacity to expend such amounts and that are satisfactorily meeting the goals of the program under this ,act1 as determined by the ,secretary4 7h7 ,uniformity and program standardization ,the ,secretary shall establish a uniform set of requirements to which each ,state and eligible entity receiving grant amounts under this ,act shall comply4 #c4 ,qualified homebuyers 7a7 ,requirements ,assistance from grant amounts under this ,act may be provided only on behalf of a homebuyer who meets all of the following requirements3 7#a7 ,income ,the household of the homebuyer has an income that does not exceed-- 7,a7 #abj percent of median income for the area 7as determined by the ,secretary7 within which-- 7i7 the eligible home to be acquired using such assistance is located2 or 7ii7 the place of residence of the homebuyer is located2 or 7,b7 in the case of a homebuyer acquiring an eligible home that is located in a high-cost area1 as determined by the ,secretary1 #ahj percent of the median income for the area within which the eligible home to be acquired using such assistance is located4 7#b7 ,first-time homebuyer ,the homebuyer1 as self-attested by the homebuyer1 is a first-time homebuyer1 as such term is defined in section #ib4b of the ,secretary's regulations 7#bd ,c4,f4,r4 #ib4b71 except that for purposes of this subsection the reference in such section #ib4b to the ,american ,dream ,downpayment ,initiative shall be considered to refer to the program under this ,act4 7#c7 ,first-generation homebuyer ,the homebuyer is1 as self-attested by the homebuyer-- 7,a7 an individual-- 7i7 whose parents or legal guardians do not have any present residential ownership interest in any ,state2 and 7ii7 whose spouse1 or domestic partner1 and each member of whose household has not1 during the #c-year period ending upon acquisition of the eligible home to be acquired using such assistance1 had any present ownership interest in a principal residence in any ,state2 or 7,b7 an individual who has at any time been placed in foster care4 7b7 ,reliance on borrower attestations ,no creditor shall be subject to liability1 including monetary penalties or requirements to indemnify a ,federal agency or repurchase a loan that has been sold or securitized1 for the provision of downpayment assistance under this ,act to a borrower who does not meet the eligibility requirements if the creditor does so in good faith reliance on borrower attestations of eligibility required by this ,act or regulation4 #d4 ,eligible homes 7a7 ,in general ,assistance from grant amounts under this ,act may be provided only in connection with the acquisition by a qualified homebuyer of a residential property that-- 7#a7 consists of #a to #d dwelling units2 and 7#b7 will be occupied by the qualified homebuyer1 in accordance with such assurances and commitments as the ,secretary shall require1 as the primary residence of the homebuyer1 subject to section #c4 7b7 ,repayment of assistance 7#a7 ,requirement ,the ,secretary shall require that1 if a homebuyer on behalf of whom assistance is provided from grant amounts under this ,act fails or ceases to occupy the property acquired using such assistance as the primary residence of the homebuyer1 except in the case of assistance provided in connection with the purchase of a primary residence through a shared equity homeownership program1 the homebuyer shall repay to the ,secretary-- 7,a7 #ajj percent of the amount of such assistance1 if such failure to occupy commences before the expiration of the #ab-month period beginning on the date of acquisition2 7,b7 #hj percent of the amount of such assistance1 if such failure to occupy commences after the expiration of the #ab-month period beginning on such date of acquisition but before the expiration of the #bd-month period beginning on such date of acquisition2 7,c7 #fj percent of the amount of such assistance1 if such failure to occupy commences after the expiration of the #bd-month period beginning on such date of acquisition but before the expiration of the #cf-month period beginning on such date of acquisition2 7,d7 #dj percent of the amount of such assistance1 if such failure to occupy commences after the expiration of the #cf-month period beginning on such date of acquisition but before the expiration of the #dh-month period beginning on such date of acquisition2 and 7,e7 #bj percent of the amount of such assistance1 if such failure to occupy commences after the expiration of the #dh-month period beginning on such date of acquisition but before the expiration of the #fj-month period beginning on such date of acquisition4 7#b7 ,limitation ,notwithstanding paragraph 7#a71 if a homebuyer on behalf of whom assistance is provided from grant amounts under this ,act experiences an unforeseen hardship1 such as death or military deployment1 or sells the property acquired with such assistance before the expiration of the #fj-month period beginning on such date of acquisition and the capital gains from such sale are less than the amount the homebuyer is required to repay the ,secretary under paragraph 7#a71 the homebuyer shall not be liable to the ,secretary for repayment of the amount of such shortage4 7c7 ,community land trusts and shared equity homeownership programs ,if assistance from grant amounts under this ,act are provided in connection with an eligible home made available through a community land trust or shared equity homeownership program1 such assistance shall remain in the community land trust or shared equity property upon transfer of the property to keep the home affordable to the next eligible community land trust or shared equity homebuyer4 #e4 ,eligible mortgage loans ,assistance from grant amounts under this ,act may be provided only in connection with the acquisition of an eligible home involving 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 #f4 ,housing counseling requirement 7a7 ,in general ,except as provided pursuant to section #c1 assistance with grant amounts under this ,act may not be provided on behalf of a qualified homebuyer unless such homebuyer has completed a program of counseling with respect to the responsibilities and financial management involved in homeownership before entering into a sales purchase agreement or loan application1 except as provided under subsection 7c71 as the ,secretary shall require1 provided through a counseling agency approved by the ,secretary4 ,such program may be delivered virtually1 by telephone1 or by any other method the ,secretary determines acceptable and shall include providing information on fair housing rights and on the availability of post-purchase housing counseling opportunities and instruction on how to file a fair housing complaint4 7b7 ,alternative requirement ,the ,secretary shall provide that if a qualified homebuyer is unable to complete the requirement under subsection 7a7 within #cj days due to housing counseling agency capacity issues1 a ,state or eligible entity may allow such qualified homebuyer to complete alternative homebuyer education to fulfill the requirement under subsection 7a71 including homebuyer education that is provided through an online platform1 and such qualified homebuyer shall be made aware of the availability of post-purchase housing counseling opportunities4 7c7 ,referral upon mortgage denial ,the ,secretary shall require that any qualified homebuyer who has completed a counseling program referred to in subsection 7a7 or alternative requirement pursuant to subsection 7b71 who receives a commitment for assistance with grant amounts under this ,act1 and who applies for an eligible mortgage loan for acquisition of an eligible home and is denied such mortgage loan1 shall be referred to a counseling agency described in subsection 7a7 for counseling relating to such denial and for re-qualification4 ,an eligible homebuyer may be re-qualified at least one additional time in a calendar year1 or more as determined by the ,secretary4 7d7 ,funding ,of any amounts appropriated to carry out this ,act1 the ,secretary shall use not less than #e percent for costs of providing counseling referred to in subsection 7a74 #g4 ,administrative costs ,of any grant amounts under this ,act received by a ,state or eligible entity1 the ,state or eligible entity may use not more than #e percent for administrative costs of and training for carrying out the program of the ,state or eligible entity to provide assistance with such grant amounts4 #h4 ,reports 7a7 ,in general ,for each fiscal year during which the ,secretary makes grants under this ,act1 the ,secretary shall submit to the ,congress1 and make publicly available online in an easily accessible location on the website of the ,department of ,housing and ,urban ,development1 a report that shall include-- 7#a7 demographic information regarding applicants for and recipients of assistance provided pursuant to this ,act1 including race1 ethnicity1 and gender2 7#b7 information regarding the types and amount of assistance provided1 including downpayment assistance1 assistance with closing costs1 and assistance to reduce mortgage loan interest rates2 and 7#c7 information regarding properties acquired using such assistance1 including location1 property value1 property type1 and first mortgage type and investor4 ,all data shall be disaggregated by zip code or census tract level1 whichever is most feasible1 and demographic information1 including race1 ethnicity1 and gender1 and any other data points the ,secretary deems appropriate especially to observe equitable outcomes to ensure the program is affirmatively furthering fair housing4 7b7 ,capacity building ,of any amounts appropriated to carry out this ,act1 the ,secretary shall use not more than #a percent to assist ,states and eligible entities to develop capacity to meet the reporting requirements under subsection 7a74 ,the ,secretary shall encourage ,states and eligible entities to consult with community-based and nonprofit organizations that have as their mission to advance fair housing and fair lending4 7c7 ,privacy requirements 7#a7 ,in general ,each ,state and eligible entity that receives a grant under this ,act shall establish data privacy and security requirements for the information described in subsection 7a7 that-- 7,a7 include appropriate measures to ensure that the privacy of the individuals and households is protected2 7,b7 provide that the information1 including any personally identifiable information1 is collected and used only for the purpose of submitting reports under subsection 7a72 and 7,c7 provide confidentiality protections for data collected about any individuals who are survivors of intimate partner violence1 sexual assault1 or stalking4 7#b7 ,statistical research 7,a7 ,in general ,the ,secretary-- 7i7 may provide full and unredacted information provided under subsection 7a71 including personally identifiable information1 for statistical research purposes in accordance with existing law2 and 7ii7 may collect and make available for statistical research1 at the census tract level1 information collected under paragraph 7#a74 7,b7 ,application of privacy requirements ,a recipient of information under subparagraph 7,a7 shall establish for such information the data privacy and security requirements described in paragraph 7#a74 #i4 ,compelling interest study ,the ,secretary and the ,attorney ,general shall survey and compile evidence to determine whether or not there is a sufficient history of discrimination in housing and the appropriate remedy to redress such historic discrimination4 ,the ,secretary shall make conclusions and recommendations based on the evidence and provide ,states and eligible entities granted awards under this ,act an opportunity to modify their programs for assistance under this ,act according to such recommendations4 #aj4 ,definitions ,for purposes of this ,act1 the following definitions shall apply3 7#a7 ,affirmatively further fair housing ,the term affirmatively further fair housing has the same meaning as defined by the ,secretary to implement section #hjh7;e77#e7 of the ,fair ,housing ,act 7#db ,u4,s4,c4 #cfjh7;e77#e774 7#b7 ,community land trust ,the term community land trust means a nonprofit organization or ,state or local governments or instrumentalities that-- 7,a7 use a ground lease or deed covenant with an affordability period of at least #cj years or more to-- 7i7 make homeownership units affordable to households2 and 7ii7 stipulate a preemptive option to purchase the affordable homeownership units so that the affordability of the units is preserved for successive income-eligible households2 and 7,b7 monitor properties to ensure affordability is preserved4 7#c7 ,eligible entity ,the term eligible entity means-- 7,a7 a minority depository institution1 as such term is defined in section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note72 7,b7 a community development financial institution1 as such term is defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb71 that is certified by the ,secretary of the ,treasury and targets services to minority and low-income populations and provides services in neighborhoods having high concentrations of minority and low-income populations2 and 7,c7 any other nonprofit1 mission-driven entity that the ,secretary finds targets services to minority and low-income populations and provides services in neighborhoods having high concentrations of minority and low-income populations4 7#d7 ,eligible home ,the term eligible home means a residential dwelling1 including a unit in a condominium or cooperative project or a manufactured housing unit1 that meets the requirements of section #d4 7#e7 ,eligible mortgage loan ,the term eligible mortgage loan means a residential mortgage loan that meets the requirements of section #e4 7#f7 ,qualified homebuyer ,the term qualified homebuyer means a homebuyer who meets the requirements of section #c1 and includes homebuyers consisting of multiple individuals1 co-purchasers1 and multi-member households4 7#g7 ,secretary ,the term ,secretary means the ,secretary of ,housing and ,urban ,development4 7#h7 ,shared equity homeownership program 7,a7 ,in general ,the term shared equity homeownership program means affordable homeownership preservation through a resale restriction program administered by a community land trust1 other nonprofit organization1 or ,state or local government or instrumentalities4 7,b7 ,affordability requirements ,any such program under subparagraph 7,a7 shall-- 7i7 provide affordable homeownership opportunities to households2 and 7ii7 utilize a ground lease1 deed restriction1 subordinate loan1 or similar legal mechanism that includes provisions ensuring that the program shall-- 7,i7 maintain the homeownership unit as affordable for subsequent very low-1 low-1 or moderate-income families for an affordability term of at least #cj years after recordation2 7,,ii7 apply a resale formula that limits the homeowner's proceeds upon resale2 and 7,,iii7 provide the program administrator or such administrator's assignee a preemptive option to purchase the homeownership unit from the homeowner at resale4 7#i7 ,socially and economically disadvantaged individual ,the term socially and economically disadvantaged individual means an individual who meets the following requirements3 7,a7 ,social disadvantage 7i7 ,in general ,the individual is a member of a socially disadvantaged group1 whose members have historically been subjected to racial or ethnic discrimination within the ,united ,states because of their identity as members of such group without regard to their individual qualities4 7ii7 ,presumption2 rebuttal ,an individual identifying as ,black1 ,hispanic1 ,native ,american1 or ,asian ,american1 or any combination thereof1 shall be presumed to be socially disadvantaged for purposes of clause 7i74 ,such presumption may be rebutted by such individual with credible evidence to the contrary4 7iii7 ,burden of proof ,an individual who does not identify as described in clause 7ii7 shall be required to establish individual social disadvantage for purposes of clause 7i7 by a preponderance of the evidence4 7iv7 ,rules ,the ,secretary may issue regulations as necessary to establish procedures for complying with this subparagraph4 7,b7 ,economic disadvantage ,the individual has an income that meets the requirements under section #c7;a74 7#aj7 ,state ,the term ,state means any ,state of the ,united ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,united ,states ,virgin ,islands1 ,guam1 the ,commonwealth of the ,northern ,mariana ,islands1 ,american ,samoa1 and the tribal government of any ,indian tribe1 as such term is defined in section #d of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc74 #aa4 ,regulations ,the ,secretary shall issue any regulations necessary to implement this ,act4 #ab4 ,authorization of appropriations ,there is authorized to be appropriated for grants under this ,act #ajj1jjj1jjj1jjj1 and any amounts appropriated pursuant to this section shall remain available until expended4