Educator Down Payment Assistance Act of 2022
This bill requires the Department of Education to award grants for assisting certain elementary and secondary school educators with the purchase of a first home (e.g., by providing direct down payment costs). Entities eligible for the grants include local governments, state housing finance agencies, and local educational agencies.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8340 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8340
To direct the Secretary of Education to award grants to provide
financial assistance to certain educators to make down payments on
certain homes, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 12, 2022
Mr. Swalwell (for himself and Mrs. Hayes) introduced the following
bill; 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 homes, and for other purposes.
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 ``Educator Down Payment Assistance Act
of 2022''.
SEC. 2. FIRST-TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM.
(a) Establishment.--The Secretary of Education shall award grants,
on a competitive basis, to eligible entities to award subgrants to
eligible educators in accordance with subsection (d).
(b) Application.--An eligible entity seeking a grant under this
section shall submit to the Secretary an application in such form, at
such time, and containing such information as the Secretary determines
appropriate, including an assurance that such entity will utilize an
existing, or establish a new, down payment assistance program to award
subgrants to eligible educators.
(c) 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 agency, the Secretary may
only award a grant to 1 such entity in such geographic area.
(d) Subgrants.--
(1) In general.--An eligible entity that receives a grant
under subsection (a) shall use such grant funds to award
subgrants to eligible educators.
(2) Application.--An eligible educator seeking a subgrant
under this subsection shall submit to the eligible entity an
application in such form, at such time, and containing such
information as the eligible entity determines appropriate,
including an assurance that such educator will--
(A) complete the housing counseling required under
paragraph (8); and
(B) use an eligible residential mortgage loan to
purchase an eligible dwelling.
(3) Subgrant uses.--An eligible educator that receives a
subgrant under this subsection shall use such subgrant funds to
pay, with respect to the purchase of an eligible dwelling using
an eligible residential mortgage loan, for--
(A) direct down payment costs associated with such
purchase;
(B) closing costs associated with such purchase;
and
(C) costs related to reducing the rates of interest
on such eligible residential mortgage loan associated
with such purchase.
(4) Subgrant amount.--
(A) In general.--Except as provided under
subparagraph (B), a subgrant awarded under this
subsection may not exceed $25,000.
(B) Exception.--In the case of an eligible educator
purchasing an eligible dwelling that is located in a
high-cost area (as determined by the Secretary based on
area median income), a subgrant awarded under this
subsection may exceed $25,000.
(5) Subgrant limit.--An eligible educator may only receive
1 subgrant under this subsection.
(6) Additional funds.--An eligible entity may award a
subgrant under this subsection to an eligible educator who is
receiving funds from other sources, including other State,
Federal, local, private, public, and nonprofit sources, for the
purpose of purchasing an eligible dwelling.
(7) Occupancy requirement.--
(A) 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 3 years.
(B) Enforcement.--
(i) Return of funds.--An eligible educator
who does not comply with the requirement under
subparagraph (A) shall return to the eligible
entity the total amount of the subgrant funds
awarded to such educator under this subsection.
(ii) Timing.--Such funds shall be returned
in accordance with clause (i) not later than 1
year after such educator ceases to use such
dwelling as a primary residence in violation of
the requirement under subparagraph (A).
(iii) Exception.--An eligible educator who
does not comply with the requirement under
subparagraph (A) due to an emergency event
shall not be required to return subgrant funds
under clause (i).
(8) Housing counseling requirement.--
(A) In general.--An eligible educator shall provide
to the eligible entity, in accordance with clause
(iii), proof of completion of a program of housing
counseling that--
(i) is offered--
(I) by a housing counseling agency
that is approved by the Department of
Housing and Urban Development; and
(II) in person, virtually, by
telephone, or by any other method
determined by the Secretary to be
acceptable;
(ii) includes information with respect to--
(I) the responsibilities and
financial management required with
respect to owning a home; and
(II) fair housing rights and how to
file a fair housing complaint; and
(iii) is completed prior to filling out a
loan application or entering into a sales
purchase agreement.
(B) Funding.--The Secretary shall reserve not less
than 5 percent of the funds made available to carry out
this section to pay for the costs of the housing
counseling required under subparagraph (A) for eligible
educators.
(e) Definitions.--In this section:
(1) Eligible dwelling.--
(A) In general.--The term ``eligible dwelling''
means a residential property, an apartment, a
condominium, or a manufactured dwelling unit.
(B) Limitation.--An eligible dwelling does not
include a residential property that contains more than
4 dwelling units.
(2) Eligible educator.--The term ``eligible educator''
means a public elementary or secondary school teacher,
principal, paraprofessional, school leader, or other staff
who--
(A) is a first-time homebuyer;
(B) has served in their position or another
position in the educational system for not less than a
total of 3 years (without regard to whether such years
were consecutive);
(C) has a qualifying income; and
(D) is in good standing.
(3) Eligible entity.--The term ``eligible entity'' means--
(A) a unit of local government;
(B) a State housing finance agency; or
(C) a local educational agency.
(4) Eligible residential mortgage loan.--The term
``eligible residential mortgage loan'' means a residential
mortgage loan that--
(A) meets the underwriting requirements and dollar
amount limitations for acquisition by the Federal
National Mortgage Association or the Federal Home Loan
Mortgage Corporation;
(B) is made, insured, or guaranteed under title II
of the National Housing Act (12 U.S.C. 1707 et seq.) or
title V of the Housing Act of 1949 (42 U.S.C. 1471 et
seq.);
(C) is a qualified mortgage, as such term is
defined in section 129C(b)(2) of the Truth in Lending
Act (15 U.S.C. 1639c(b)(2));
(D) is made, insured, or guaranteed under chapter
37 of title 38, United States Code; or
(E) is guaranteed under section 184 of the Housing
and Community Development Act of 1992 (12 U.S.C. 1715z-
13a).
(5) Emergency event.--The term ``emergency event''
includes--
(A) military deployment;
(B) divorce;
(C) death of an eligible educator or spouse; and
(D) other similar unforeseen events as determined
by the Secretary.
(6) ESEA terms.--The terms ``elementary school'', ``local
educational agency'', ``other staff'', ``secondary school'',
and ``Secretary'' have the meanings given such terms in section
8101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
(7) First-time homebuyer.--The term ``first-time
homebuyer'' has the meaning given such term in section 92.2 of
title 24, Code of Federal Regulations (as in effect on the date
of the enactment of this Act), 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 section.
(8) Good standing.--
(A) In general.--The term ``good standing'' means
that, with respect to an eligible educator and for the
period described in subparagraph (B), such educator has
not received disciplinary action from the local
educational agency that serves the school at which such
educator works as an educator.
(B) Period.--The period described in subparagraph
(A)--
(i) begins on the date that is 3 years
before the date described in clause (ii); and
(ii) ends on the date on which such
educator submits an application under
subsection (c).
(9) Qualifying income.--
(A) In general.--The term ``qualifying income''
means, except as provided in subparagraph (B), an
income that does not exceed 120 percent of the area
median income in which the eligible dwelling to be
purchased is located.
(B) High-cost area.--If the Secretary makes a
determination that an area described in subparagraph
(A) is a high-cost area, the qualifying income shall be
an income that does not exceed 180 percent of the
median income of such area.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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