I 

111TH CONGRESS 

1ST SESSION H. R. 2922 

To establish a downpayment requirement for Rural Housing Service direct 

and guaranteed single-family home loan programs, to repeal the downpayment assistance initiative under subtitle E of title II of the CranstonGonzalez National Affordable Housing Act, and to prohibit use of 

amounts provided under certain other programs for downpayment assistance. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 17, 2009 

Mr. FLAKE introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To establish a downpayment requirement for Rural Housing 

Service direct and guaranteed single-family home loan 

programs, to repeal the downpayment assistance initiative under subtitle E of title II of the Cranston-Gonzalez 

National Affordable Housing Act, and to prohibit use 

of amounts provided under certain other programs for 

downpayment assistance. 

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


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•HR 2922 IH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Federal Assistance 

3 Downpayment Reform Act of 2009’’. 

4 SEC. 2. DOWNPAYMENT REQUIREMENT FOR RURAL HOUS5 ING SERVICE SINGLE-FAMILY HOME LOAN 

6 PROGRAMS. 

7 Section 501 of the Housing Act of 1949 (42 U.S.C. 

8 1471) is amended by adding at the end the following new 

9 subsection: 

10 ‘‘(k) DOWNPAYMENT REQUIREMENT.—The Secretary 

11 may not make a loan under section 502 to any borrower, 

12 or provide a guarantee under section 502(h) for any loan 

13 to any borrower, unless the borrower under the loan has 

14 paid, in cash or its equivalent, on account of the property 

15 to be acquired or refinanced with the proceeds of such loan 

16 an amount equal to not less than 3.5 percent of the ap17 praised value of the property or such larger amount as 

18 the Secretary may determine.’’. 

19 SEC. 3. REPEAL OF DOWNPAYMENT ASSISTANCE INITIA20 TIVE. 

21 Title II of the Cranston-Gonzalez National Affordable 

22 Housing Act is amended by striking subtitle E (42 U.S.C. 

23 12821 et seq.). 


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•HR 2922 IH

1 SEC. 4. PROHIBITION OF USE OF CERTAIN FUNDS FOR 

2 DOWNPAYMENT ASSISTANCE. 

3 (a) COMMUNITY DEVELOPMENT BLOCK GRANT PRO4 GRAM.—Section 105 of the Housing and Community De5 velopment Act of 1974 (42 U.S.C. 5305) is amended by 

6 adding at the end the following new subsection: 

7 ‘‘(i) PROHIBITION ON USE OF ASSISTANCE FOR

8 DOWNPAYMENTS.—Notwithstanding any other provision 

9 of law (including subparagraph (D) of section 105(a)(25) 

10 of this title, as in effect pursuant to Public Law 104–204 

11 (110 Stat. 2887)), no amount from a grant made under 

12 this title may be used to provide downpayment assistance 

13 on behalf of any family or person for the acquisition of 

14 a residence.’’. 

15 (b) NEIGHBORHOOD STABILIZATION PROGRAM.— 

16 Subsection (d) of section 2301 of the Housing and Eco17 nomic Recovery Act of 2008 (42 U.S.C. 5301 note) is 

18 amended by adding at the end the following new para19 graph: 

20 ‘‘(4) PROHIBITION ON USE OF ASSISTANCE FOR

21 DOWNPAYMENTS.—Notwithstanding any other provi22 sion of law, no amounts made available under this 

23 section may be used to provide downpayment assist24 ance on behalf of any family or person for the acqui25 sition of a residence.’’. 

Æ 


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