SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Dream Downpayment Act''.

SEC. 2. DOWNPAYMENT ASSISTANCE INITIATIVE UNDER HOME PROGRAM.

    (a) Downpayment Assistance Initiative.--Subtitle E of title II of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12821) 
is amended to read as follows:

                     ``Subtitle E--Other Assistance

``SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.

    ``(a) Grant Authority.--The Secretary may make grants to 
participating jurisdictions to assist low-income families to achieve 
homeownership, in accordance with this section.
    ``(b) Eligible Activities.--
            ``(1) In general.--Amounts made available under this 
        section may be used only for downpayment assistance toward the 
        purchase of single family housing by eligible families. For 
        purposes of this title, the term `downpayment assistance' means 
        assistance to help a family acquire a principal residence.
            ``(2) Eligible families.--For purposes of this section, the 
        term `eligible family' means a family who--
                    ``(A) is a low-income family and a first-time 
                homebuyer; or
                    ``(B) notwithstanding the income limitation under 
                section 215(b)(2)--
                            ``(i) includes a uniformed employee (which 
                        shall include policemen, firemen, and 
                        sanitation and other maintenance workers) or a 
                        teacher who is an employee, of the 
                        participating jurisdiction (or an agency or 
                        school district serving such jurisdiction) that 
                        is providing the downpayment assistance under 
                        this section for the family; and
                            ``(ii) has an income, at the time referred 
                        to in subparagraph (A), (B), or (C) of section 
                        215(b)(2), as appropriate, and as determined by 
                        the Secretary with adjustments for smaller and 
                        larger families, that does not exceed 115 
                        percent of the median income of the area, 
                        except that, with respect only to such areas 
                        that the Secretary determines have high housing 
                        costs, taking into consideration median house 
                        prices and median family incomes for the area, 
                        such income limitation shall be 150 percent of 
                        the median income of the area, as determined by 
                        the Secretary with adjustments for smaller and 
                        larger families.
    ``(c) Housing Strategy.--To be eligible to receive a grant under 
this section for a fiscal year, a participating jurisdiction shall 
include in its comprehensive housing affordability strategy under 
section 105 for such year--
            ``(1) a description of the use of the grant amounts;
            ``(2) a plan for conducting targeted outreach to residents 
        and tenants of public housing, trailer parks, and manufactured 
        housing, and to other families assisted by public housing 
        agencies, for the purpose of ensuring that grant amounts 
        provided under this section to a participating jurisdiction are 
        used for downpayment assistance for such residents, tenants, 
        and families; and
            ``(3) a description of the actions to be taken to ensure 
        the suitability of families provided downpayment assistance 
        under this section to undertake and maintain homeownership.
    ``(d) Formula Allocation.--For each fiscal year, the Secretary 
shall allocate any amounts made available for assistance under this 
section for the fiscal year in accordance with a formula, which shall 
be established by the Secretary, that considers a participating 
jurisdiction's need for and prior commitment to assistance to 
homebuyers. The formula may include minimum allocation amounts. In 
considering a participating jurisdiction's prior year's commitment to 
assistance to homebuyers, the formula shall consider amounts committed 
to such purpose under the HOME investment partnerships program, the 
community development block grant program, mortgage revenue bonds, and 
prior year's funding from State and local governments, provided that 
the data underlying such funding is uniform, verifiable, and accurate 
by the State and local government, and shall consider other factors 
that the Secretary determines to be appropriate.
    ``(e) Reallocation.--If any amounts allocated to a participating 
jurisdiction under this section become available for reallocation, the 
amounts shall be reallocated to other participating jurisdictions in 
accordance with the formula established pursuant to subsection (d), 
except that if a local participating jurisdiction failed to receive 
amounts allocated under this section and is located in a State that is 
a participating jurisdiction, the funds shall be reallocated to the 
State.
    ``(f) Applicability of Other Provisions.--
            ``(1) In general.--Except as otherwise provided in this 
        section, grants under this section shall not be subject to the 
        provisions of this title.
            ``(2) Applicable provisions.--In addition to the 
        requirements of this section, grants under this section shall 
        be subject to the provisions of title I, sections 215(b) 
        (except as provided in subsection (b)(2)(B) of this section), 
        218, 219, 221, 223, 224, and 226(a) of subtitle A of this 
        title, and subtitle F of this title.
            ``(3) References.--In applying the requirements of subtitle 
        A referred to in paragraph (2)--
                    ``(A) any references to funds under subtitle A 
                shall be considered to refer to amounts made available 
                for assistance under this section; and
                    ``(B) any references to funds allocated or 
                reallocated under section 217 or 217(d) shall be 
                considered to refer to amounts allocated or reallocated 
                under subsection (d) or (e) of this section, 
                respectively.
    ``(g) Administrative Costs.--Notwithstanding section 212(c), a 
participating jurisdiction may use funds under subtitle A for 
administrative and planning costs of the jurisdiction in carrying out 
this section, and the limitation in section 212(c) shall be based on 
the total amount of funds available under subtitle A and this section.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $200,000,000 for each of fiscal 
years 2004 and 2005.''.
    (b) Relocation Assistance and Downpayment Assistance.--Subtitle F 
of title II of the Cranston-Gonzalez National Affordable Housing Act is 
amended by inserting after section 290 (42 U.S.C. 12840) the following 
new section:

``SEC. 291. RELOCATION ASSISTANCE AND DOWNPAYMENT ASSISTANCE.

    ``The Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 shall not apply to downpayment assistance under 
this title.''.

            Passed the House of Representatives October 1, 2003.

            Attest:

                                                                 Clerk.
American Dream Downpayment Act - Amends the Cranston-Gonzalez National Affordable Housing Act to authorize the Secretary of Housing and Urban Development to make grants to participating jurisdictions for single family residential downpayment assistance to: (1) low-income or first-time home buyers; or (2) income-qualifying uniformed employees (police, fire, sanitation and maintenance) or teachers of a participating jurisdiction.

Requires a participating jurisdiction to include in its comprehensive housing affordability strategy information regarding: (1) grant use; (2) outreach activities; and (3) activities to ensure the suitability of recipient families to maintain homeownership.

Sets forth allocation criteria. Permits fund reallocation.

Authorizes specified FY 2004 and 2005 appropriations.

Makes the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 inapplicable to such assistance.
To provide downpayment assistance under the HOME Investment Partnerships Act, and for other purposes.