HR4023-119

What This Bill Does

The American Dream for All Act creates a HUD shared-appreciation down payment assistance pilot. Within one year, HUD must award capitalization grants to state or Tribal agencies, instrumentalities, or housing finance agencies that have or create revolving loan funds for down payment assistance. Grant amounts are proportional to state or Tribal population. Grantees must deposit funds into loan funds and make assistance loans of at least 3 percent and not more than 20 percent of home purchase price, distributed first-come, first-served or by lottery, with no more than 15 percent used for administration. Loan offers may be made before purchase and renewed once. When the borrower sells the home, repayment equals the loan amount plus the loan's percentage share of home appreciation; if the home depreciates, repayment is just the loan amount. Repayments go back into the loan fund for reuse. Maximum loan amounts are $150,000 in high-cost states or Tribes, $100,000 in medium-cost states or Tribes, and $50,000 in low-cost states or Tribes, adjusted annually with CPI. Eligible borrowers must be U.S. citizens or permanent residents, first-time or first-generation homebuyers, complete homebuyer education and HUD-approved counseling, have income not above 150 percent of area median income, and self-attest they cannot pay more than 5 percent of home value as a down payment. HUD must receive grantee reports and report to House Financial Services and Senate Banking one year after establishing the pilot. Necessary sums are authorized for fiscal years 2026 through 2030.

Who Benefits and How

First-time homebuyers benefit from shared-appreciation down payment loans covering 3 to 20 percent of purchase price. First-generation homebuyers benefit from eligibility rules that include people whose parents or guardians lacked homeownership. Foster care homebuyers benefit because the first-generation definition includes people placed in foster or institutional care. State housing finance agencies benefit from capitalization grants for revolving down payment loan funds. Tribal housing finance agencies benefit from population-based grants and cost-category loan limits.

Who Bears the Burden and How

HUD pilot program staff must establish the program, allocate grants, set cost categories, adjust loan caps, and report to Congress. Borrowers selling appreciated homes must repay principal plus the loan's share of appreciation. Grant recipients must operate revolving funds, limit administrative costs, distribute loans, and report loan data. Federal taxpayers bear the cost of capitalization grants authorized for fiscal years 2026 through 2030. Borrowers above 150 percent of area median income or able to pay more than 5 percent down are excluded.

Key Provisions

• Creates a HUD shared-appreciation down payment loan pilot within one year.
• Provides capitalization grants to state or Tribal housing finance entities with revolving loan funds.
• Provides loans of 3 to 20 percent of home purchase price with $150,000, $100,000, and $50,000 maximums by cost category.
• Requires repayment at sale of principal plus appreciation share, or principal if the home depreciates.
• Limits borrowers to citizens or permanent residents who are first-time or first-generation buyers, complete counseling, meet income limits, and self-attest down payment need.
• Requires grantee reporting, a HUD implementation report, and authorization of necessary sums for fiscal years 2026 through 2030.