The Homeownership Promise Act would create Homeownership Promise Accounts for eligible first-time homebuyers. An eligible buyer must be at least 18, have never owned a principal residence, and complete a housing counseling program approved by the Department of Housing and Urban Development. Accounts would be offered through participating community development financial institutions and earn interest at a rate comparable to the institution’s unrestricted savings accounts.
For every $1 an eligible family contributes personally, the Secretary of Housing and Urban Development would add $5, up to $50,000 in matching grants. An account could hold up to $60,000, excluding interest. Personal, employer, and nonprofit contributions together could total no more than $10,000, excluding interest. The home must be the family’s principal residence and its price cannot exceed the area’s median single-family purchase price, subject to adjustments set by the Secretary. At closing, up to two eligible families could use account funds for the purchase.
Eligible first-time buyers could save in an account and receive a matching grant for a qualifying home purchase. Buyers may withdraw their personal contributions for any reason, including emergencies unrelated to buying a home. The bill does not allow matching grants to be used for those emergency withdrawals.
The bill authorizes Congress to appropriate whatever amounts are needed to carry out the program, but it does not specify a funding amount. Account holders’ personal contributions are subject to the stated limits.
No publicly available information.
No publicly available information.