“A bill to establish Homeownership Promise Accounts to provide matching downpayment grants, and for other purposes.”
No CRS summary available for this bill.
This section defines terms for the Act, including an eligible family as 1 or 2 first-time homebuyers at least 18 years old, an eligible home as a principal residence purchased at or below the area median single-family price (with adjustments for structure and new versus existing housing), and a first-time homebuyer as an individual who has never owned a principal residence and has completed a HUD-approved housing counseling program.
This section establishes Homeownership Promise Accounts, a matching downpayment grant program for eligible families. Families may open accounts at participating community development financial institutions, which must pay interest comparable to unrestricted savings accounts. The Secretary matches personal contributions at a $5-to-$1 rate, up to $50,000 per account (with total balances capped at $60,000 excluding interest, of which no more than $10,000 may come from personal, employer, or nonprofit sources). Families may withdraw personal contributions for any reason before closing, and up to two families may apply account balances toward the purchase of an eligible home. The section authorizes such sums as necessary.