S.Amdt. 4786

This amendment, submitted by Mr. Warnock, seeks to replace the entire content of bill S. 1383 with the Downpayment Toward Equity Act of 2026.

The purpose of this amendment is to establish the First-Generation Downpayment Assistance Program. This program aims to provide grants to States and eligible entities to help first-generation homebuyers acquire owner-occupied primary residences.

Key additions and changes include:

• Financial Assistance: Providing grants for downpayment costs, closing costs, interest rate reductions, shared equity home subsidies, and disability-related home modifications.
• Eligibility Requirements: Defining qualified homebuyers based on income limits (generally 120% of median area income, or 140% in high-cost areas), first-time homebuyer status, and first-generation homebuyer status.
• Grant Allocation: Distributing 75% of funds to States based on a formula and 25% to eligible entities through a competitive process.
• Homeownership Support: Requiring homebuyers to complete a housing counseling program and limiting assistance to residential properties of 1 to 4 units.
• Accountability and Research: Establishing annual reporting on demographics and outcomes, and requiring a study by the Secretary and Attorney General to determine the history of housing discrimination and appropriate remedies.
• Funding: Directing the Secretary of the Treasury to transfer unobligated balances from Public Law 119-21 to the Department of Housing and Urban Development.