Text of Senate Amendment 4786

Text of Senate Amendment 4786

Congressional Record, Volume 172 Issue 57 (Thursday, March 26, 2026) [Congressional Record Volume 172, Number 57 (Thursday, March 26, 2026)] [Senate] [Pages S1676-S1678] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] SA 4786. Mr. WARNOCK submitted an amendment intended to be proposed by him to the bill S. 1383, to establish the Veterans Advisory Committee on Equal Access, and for other purposes; which was ordered to lie on the table; as follows: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Downpayment Toward Equity Act of 2026''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definitions. Sec. 3. First-generation downpayment assistance program. Sec. 4. Qualified homebuyers. Sec. 5. Eligible homes. Sec. 6. Eligible mortgage loans. Sec. 7. Housing counseling requirement. Sec. 8. Administrative costs. Sec. 9. Reports. Sec. 10. Compelling interest study. Sec. 11. Implementation. Sec. 12. Funding. SEC. 2. DEFINITIONS. In this Act: (1) Affirmatively further fair housing.--The term ``affirmatively further fair housing'' has the same meaning as defined by the Secretary to implement section 808(e)(5) of the Fair Housing Act (42 U.S.C. 3608(e)(5)). (2) Eligible entity.--The term ``eligible entity'' means-- (A) a minority depository institution, as defined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note); (B) a community development financial institution, as defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702), that is certified by the Secretary of the Treasury and targets services to minority and low-income populations or provides services in neighborhoods having high concentrations of minority and low-income populations; (C) any other nonprofit, mission-driven entity that the Secretary finds has a track record of providing assistance to homeowners, targets services to minority and low-income populations, or provides services in neighborhoods having high concentrations of minority and low-income populations; and (D) a unit of general local government, as defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302). (3) Eligible home.--The term ``eligible home'' means a residential dwelling, including a unit in a condominium or cooperative project or a manufactured housing unit, that meets the requirements under section 5. (4) Eligible mortgage loan.--The term ``eligible mortgage loan'' means a residential mortgage loan that meets the requirements under section 6. (5) First-generation homebuyer.--The term ``first- generation homebuyer'' means a homebuyer that is-- (A) an individual-- (i) whose parents or legal guardians do not, or did not at the time of their death, to the best of the individual's knowledge, have any present ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel; and (ii) whose spouse or domestic partner has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, had any present ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether the individual is a co-borrower on the loan or not; or (B) an individual who has at any time been placed in foster care or institutional care whose spouse or domestic partner has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, had any ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether such individuals are co-borrowers on the loan or not. (6) Heir property.--The term ``heir property'' means residential property for which title passed by operation of law through intestacy and is held by 2 or more heirs as tenants in common. (7) Ownership interest.--The term ``ownership interest'' means any ownership, excluding any interest in heir property, in-- (A) real estate in fee simple; (B) a leasehold on real estate under a lease for not less than 99 years which is renewable; or (C) a fee interest in, or long-term leasehold interest in, real estate consisting of a 1-family unit in a multifamily project, including a project in which the dwelling units are attached, or are manufactured housing units, semi-detached, or detached, and an undivided interest in the common areas and facilities which serve the project. (8) Qualified homebuyer.--The term ``qualified homebuyer''-- (A) means a homebuyer who meets the requirements of section 4; and (B) includes homebuyers consisting of multiple individuals, co-purchasers, and multi-member households. (9) Secretary.--The term ``Secretary'' means the Secretary of Housing and Urban Development. (10) Shared equity homeownership program.--The term ``shared equity homeownership program'' means affordable homeownership preservation through a resale restriction program administered by a community land trust, other nonprofit organization, or State or local government or instrumentalities. (11) Socially and economically disadvantaged individual.-- The term ``socially and economically disadvantaged individual'' means an individual who meets the following requirements: (A) Social disadvantage.-- (i) In general.--The individual is a member of a socially disadvantaged group, 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 qualities. (ii) Presumption; rebuttal.--An individual identifying as Black, Hispanic, Native American, or Asian American, or any combination thereof, shall be presumed to be socially disadvantaged for purposes of clause (i). Such presumption may be rebutted with credible evidence to the contrary. (iii) Burden of proof.--An individual who does not identify as described in clause (ii) shall be required to establish individual social disadvantage for purposes of clause (i) by a preponderance of the evidence. (iv) Rules.--The Secretary may issue regulations as necessary to establish procedures for complying with this subparagraph. (B) Economic disadvantage.--The individual has an income that meets the requirements under section 4(a). (12) State.--The term ``State'' means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, and the tribal government of any Indian tribe, as defined in section 4 of the Native American Housing Assistance and Self- Determination Act of 1996 (25 U.S.C. 4103). SEC. 3. FIRST-GENERATION DOWNPAYMENT ASSISTANCE PROGRAM. (a) Establishment.--The Secretary 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 residences. (b) Allocation.--After reserving amounts required under sections 7(d) and 9(b), any remaining amounts made available to carry out this Act shall be allocated as follows: (1) States.--Seventy-five percent of such amounts shall be allocated among States in accordance with a formula established by the Secretary, which shall-- (A) take into consideration the best available data to provide more funding to States with a higher approximate number of potential qualified homebuyers; and (B) be adjusted to reflect median area home prices. (2) Eligible entities.--Twenty-five percent of such amounts shall be made available only to eligible entities on a competitive basis. (c) Assistance.--Amounts from a grant under this Act may only be used to provide assistance-- (1) on behalf of a qualified homebuyer; and (2) for-- (A) costs in connection with the acquisition, involving an eligible mortgage loan, of an eligible home, including downpayment costs, closing costs, and costs to reduce the rates of interest on eligible mortgage loans; (B) subsidies to make shared equity homes affordable to homebuyers by discounting the price for which the home will be sold and to preserve the affordability of the home for subsequent homebuyers; and (C) pre-occupancy home modifications required to accommodate qualified homebuyers or members of their household with disabilities. (d) Amount.--A grant of assistance under this Act-- (1) may be provided on behalf of any qualified homebuyer only once; and (2) may not exceed the greater of $20,000 or 10 percent of the purchase price in the case of a qualified homebuyer, excluding assistance received pursuant to subsection (c)(2)(C) for disability related home modifications, except that the Secretary may increase such maximum limitation amounts-- (A) for qualified homebuyers who are socially and economically disadvantaged; or [[Page S1677]] (B) in the case of qualified homebuyers acquiring residences located in high-cost areas, as determined based on median home prices or prices of residences under a shared equity homeownership program. (e) Layering of Assistance.--Assistance from grant amounts received under this Act may be provided on behalf of a qualified homebuyer who is receiving assistance from other sources, including other State, Federal, local, private, public, and nonprofit sources, for acquisition of an eligible home. (f) State Administration.-- (1) 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 appropriate, except that any such agency