This bill would create a HUD pilot called the Appreciation Sharing Down Payment Loan Pilot Program. HUD must set up the program within one year and give grants to state, territorial, and tribal agencies that create or use a revolving loan fund for down payment assistance. Grants are sized based on population. Eligible agencies must deposit grant money into a State loan fund and use it to make down payment loans equal to 3%–20% of a home's purchase price. Loans are capped by area cost: $150,000 in high-cost areas, $100,000 in medium-cost areas, and $50,000 in low-cost areas. Agencies may use no more than 15% of grant funds for administration. Loans can be offered before a buyer finds a home and may include a one-time renewal of the offer. Repayment rules require the borrower to repay the original loan and, if the home has gone up in value, a share of the appreciation equal to the loan's percentage of the original purchase price. Repaid funds must go back into the State loan fund to be reused. The bill sets eligibility rules for borrowers (citizen or lawful permanent resident; first-time or first-generation homebuyer; completed HUD-approved homebuyer education and counseling; income at or below 150% of area median income; and by self-attestation cannot pay more than 5% of the home's value). Participating agencies must report to HUD annually and HUD must report to Congress about program implementation. HUD will classify areas as high-, medium-, or low-cost and may adjust maximum loan amounts using the consumer price index. The bill authorizes "such sums as may be necessary" for fiscal years 2026 through 2030 to carry out the program.
If you meet the bill's eligibility rules, a state, territory, or tribal program could offer you a down payment loan that covers 3%–20% of the home's price, up to the area cap. You must complete HUD-approved homebuyer education and counseling and meet the income and self-attestation rules. The loan would generally be repaid when you sell the home. If the home increases in value, you would repay the loan plus a share of the appreciation based on the loan's share of the purchase price. Loans may be given before you find a house and the offer may be renewed once. The money is meant to be recycled: repayments go back into the local fund to help more buyers.
The bill authorizes "such sums as may be necessary" for fiscal years 2026 through 2030 but does not set a specific total appropriation. It allows up to 15% of grant amounts to be used for administration by the eligible entity. Loan amounts and repayments are returned to the State loan fund for reuse. No specific federal cost estimates or budget totals are provided in the text.
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No publicly available information.