II 

118TH CONGRESS 

2D SESSION S. 4261 

To direct the Secretary of Housing and Urban Development to award grants 

to provide financial assistance to certain educators to make down payments on certain homes, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 2, 2024 

Mr. HEINRICH introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To direct the Secretary of Housing and Urban Development 

to award grants to provide financial assistance to certain 

educators to make down payments on certain homes, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Educator Down Pay5 ment Assistance Act of 2024’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) ELIGIBLE DWELLING.—The term ‘‘eligible 

2 dwelling’’ means a residential property with— 

3 (A) not more than 4 dwelling units; 

4 (B) an apartment; 

5 (C) a condominium; or 

6 (D) a manufactured dwelling unit. 

7 (2) ELIGIBLE EDUCATOR.—The term ‘‘eligible 

8 educator’’ means a public elementary or secondary 

9 school teacher, principal, paraprofessional, school 

10 leader, or other staff who— 

11 (A) is a first-time homebuyer; 

12 (B) has served in their position or another 

13 position in the educational system for not fewer 

14 than a total of 3 years (without regard to 

15 whether such years were consecutive); 

16 (C) has a qualifying income; and 

17 (D) is in good standing. 

18 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti19 ty’’ means— 

20 (A) a unit of local government; 

21 (B) a State housing finance agency; or 

22 (C) a local educational agency. 

23 (4) ELIGIBLE RESIDENTIAL MORTGAGE

24 LOAN.—The term ‘‘eligible residential mortgage 

25 loan’’ means a residential mortgage loan that— 


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1 (A) meets the underwriting requirements 

2 and dollar amount limitations for acquisition by 

3 the Federal National Mortgage Association or 

4 the Federal Home Loan Mortgage Corporation; 

5 (B) is made, insured, or guaranteed under 

6 title II of the National Housing Act (12 U.S.C. 

7 1707 et seq.) or title V of the Housing Act of 

8 1949 (42 U.S.C. 1471 et seq.); 

9 (C) is made, insured, or guaranteed under 

10 title VIII of the Native American Housing As11 sistance and Self-Determination Act of 1996 

12 (25 U.S.C. 4221 et seq.); 

13 (D) is a qualified mortgage, as defined in 

14 section 129C(b)(2) of the Truth in Lending Act 

15 (15 U.S.C. 1639c(b)(2)); or 

16 (E) is guaranteed under section 184 of the 

17 Housing and Community Development Act of 

18 1992 (12 U.S.C. 1715z–13a). 

19 (5) EMERGENCY EVENT.—The term ‘‘emer20 gency event’’ includes— 

21 (A) military deployment; 

22 (B) divorce; 

23 (C) death of an eligible educator or spouse; 

24 and 


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1 (D) other similar unforeseen events as de2 termined by the Secretary. 

3 (6) ESEA TERMS.—The terms ‘‘elementary 

4 school’’, ‘‘local educational agency’’, ‘‘other staff’’, 

5 ‘‘secondary school’’, and ‘‘Secretary’’ have the mean6 ings given such terms in section 8101 of the Ele7 mentary and Secondary Education Act of 1965 (20 

8 U.S.C. 7801). 

9 (7) FIRST-TIME HOMEBUYER.—The term ‘‘first10 time homebuyer’’ has the meaning given the term in 

11 section 92.2 of title 24, Code of Federal Regulations 

12 (as in effect on the date of the enactment of this 

13 Act), except that any reference in such section to the 

14 American Dream Downpayment Initiative shall be 

15 deemed to be a reference to the grant program es16 tablished under this section. 

17 (8) GOOD STANDING.—The term ‘‘good stand18 ing’’ means that, with respect to an eligible educator 

19 and during the 3-year period beginning on the date 

20 on which the educator submits an application under 

21 section 3(b), such educator has not received discipli22 nary action from the local educational agency that 

23 serves the school at which such educator works as 

24 an educator. 


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1 (9) QUALIFYING INCOME.—The term ‘‘quali2 fying income’’ means— 

3 (A) an income that is not greater than 120 

4 percent of the area median income in which the 

5 eligible dwelling to be purchased is located; and 

6 (B) if the Secretary determines that the 

7 area described in subparagraph (A) is a high8 cost area, an income that is not greater than 

9 180 percent of the median income of such area. 

10 (10) SECRETARY.—The term ‘‘Secretary’’ 

11 means the Secretary of Housing and Urban Develop12 ment. 

13 SEC. 3. FIRST-TIME HOMEBUYER DOWN PAYMENT ASSIST14 ANCE PROGRAM. 

15 (a) ESTABLISHMENT.—The Secretary of Housing 

16 and Urban Development shall award grants, on a competi17 tive basis, to eligible entities to provide financial assistance 

18 to eligible educators in accordance with subsection (d). 

19 (b) APPLICATION.—An eligible entity seeking a grant 

20 under this section shall submit to the Secretary an appli21 cation in such form, at such time, and containing such 

22 information as the Secretary determines appropriate, in23 cluding an assurance that such entity will use an existing, 

24 or establish a new, down payment assistance program to 

25 provide financial assistance to eligible educators. 


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1 (c) GEOGRAPHIC AREAS.—In the case of a geo2 graphic area that is served by an eligible entity that is 

3 a unit of local government and an eligible entity that is 

4 a local educational agency, the Secretary may only award 

5 a grant to 1 such entity in such geographic area. 

6 (d) USE OF AMOUNTS TO PROVIDE FINANCIAL AS7 SISTANCE.— 

8 (1) IN GENERAL.—An eligible entity that re9 ceives a grant under subsection (a) shall use such 

10 grant funds to provide financial assistance to eligible 

11 educators. 

12 (2) APPLICATION.—An eligible educator seeking 

13 a financial assistance under this subsection shall 

14 submit to the eligible entity an application in such 

15 form, at such time, and containing such information 

16 as the eligible entity determines appropriate, includ17 ing an assurance that such educator will— 

18 (A) complete the housing counseling re19 quired under paragraph (8); and 

20 (B) use an eligible residential mortgage 

21 loan to purchase an eligible dwelling. 

22 (3) USE OF FINANCIAL ASSISTANCE.—An eligi23 ble educator who receives financial assistance under 

24 this subsection shall use such financial assistance to 

25 pay, with respect to the purchase of an eligible 


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1 dwelling using an eligible residential mortgage loan, 

2 for— 

3 (A) direct down payment costs associated 

4 with such purchase; 

5 (B) closing costs associated with such pur6 chase; and 

7 (C) costs related to reducing the rates of 

8 interest on such eligible residential mortgage 

9 loan associated with such purchase. 

10 (4) AMOUNT OF FINANCIAL ASSISTANCE.— 

11 (A) IN GENERAL.—Except as provided 

12 under subparagraph (B), the amount of finan13 cial assistance awarded to an eligible educator 

14 under this subsection may not be greater than 

15 $25,000. 

16 (B) EXCEPTION.—In the case of an eligi17 ble educator purchasing an eligible dwelling 

18 that is located in an area described in section 

19 305(a)(2) of the Federal Home Loan Mortgage 

20 Corporation Act (12 U.S.C. 1454(a)(2)), the 

21 amount of financial assistance awarded to an 

22 eligible educator under this subsection may be 

23 greater than $25,000. 


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1 (5) LIMITATION.—An eligible educator may 

2 only receive financial assistance under this sub3 section 1 time. 

4 (6) ADDITIONAL FUNDS.—An eligible entity 

5 may award financial assistance under this subsection 

6 to an eligible educator who is receiving funds from 

7 other sources, including other State, Federal, local, 

8 private, public, and nonprofit sources, for the pur9 pose of purchasing an eligible dwelling. 

10 (7) OCCUPANCY REQUIREMENT.— 

11 (A) IN GENERAL.—An eligible educator 

12 who is awarded financial assistance under this 

13 subsection shall use the eligible dwelling pur14 chased using such financial assistance as a pri15 mary residence for a period of not fewer than 

16 3 years beginning on the date on which the eli17 gible educator receives financial assistance 

18 under this subsection. 

19 (B) ENFORCEMENT.— 

20 (i) RETURN OF FUNDS.—An eligible 

21 educator who does not comply with the re22 quirement under subparagraph (A) shall 

23 return to the eligible entity the total 

24 amount of the financial assistance awarded 

25 to such educator under this subsection. 


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1 (ii) TIMING.—Such funds shall be re2 turned in accordance with clause (i) not 

3 later than 1 year after such educator 

4 ceases to use such dwelling as a primary 

5 residence in violation of the requirement 

6 under subparagraph (A). 

7 (iii) EXCEPTION.—An eligible educa8 tor who does not comply with the require9 ment under subparagraph (A) due to an 

10 emergency event shall not be required to 

11 return financial assistance under clause (i). 

12 (8) SERVICE REQUIREMENT.— 

13 (A) IN GENERAL.—An eligible educator 

14 who is awarded financial assistance under this 

15 subsection shall be required by the Secretary to 

16 continue in their role as a public elementary or 

17 secondary school teacher, principal, paraprofes18 sional, school leader, or other staff for not less 

19 than 3 years after the date on which the eligible 

20 educator is awarded financial assistance. 

21 (B) EXCEPTION.—Subparagraph (A) shall 

22 not apply if an eligible educator is a military 

23 spouse, as defined in section 45AA(d)(1) of the 

24 Internal Revenue Code of 1986. 


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1 (e) REPORTING REQUIREMENTS.—The Secretary 

2 shall submit to Congress an annual report that includes 

3 include a breakdown of financial assistance provided under 

4 this section, by demographic breakdown, mean income, 

5 and mean purchase price. 

6 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated to carry out this section 

8 $30,000,000 for each of fiscal years 2025 through 2030. 

Æ 


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