(3) USE OF LIEN.—The State or Indian tribe 
that provided the assistance to the eligible person 
may place a lien on the eligible home for the purpose 
of recapturing such assistance. 
(4) USE OF RECAPTURED AMOUNTS.—Any as-
sistance repaid pursuant to paragraph (1) shall be 
used to provide assistance to other covered persons. 
(f) ASSISTANCE AMOUNTS EXCLUDED FROM FED-
ERAL TAXATION.—For purposes of the Internal Revenue 
Code of 1986, gross income shall not include any assist-
ance provided under this Act. 
(g) RULE OF CONSTRUCTION.—Assistance provided 
to an eligible person by a State or Indian tribe under this 
section may not be considered funds from a prohibited 
source for the purposes of section 203(b)(9)(C) of the Na-
tional Housing Act (12 U.S.C. 1709(b)(9)(C)). 
SEC. 3. ADMINISTRATION OF GRANTS BY STATES AND IN-
DIAN TRIBES. 
(a) ADMINISTRATION BY STATES.— 
(1) IN GENERAL.—The Secretary shall require 
that each State receiving grant amounts under this 
Act— 
(A) submit an annual plan to the Secretary 
with respect to implementing and complying 
with the requirements of this Act; and 
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(B) distribute not less than 25 percent of 
the amounts allocated to the State through 
community development financial institutions. 
(2) ANNUAL PLAN.—The annual plan required 
under paragraph (1) may be included in the Annual 
Action Plan submitted to the Secretary by such 
State. 
(3) OUTSOURCING PERMITTED.—The Secretary 
may permit a State to contract with one or more of 
the following to provide amounts to eligible persons 
on behalf of the State: 
(A) A tax-exempt private or public non-
profit organization approved by the Secretary. 
(B) A community development financial in-
stitution. 
(b) ADMINISTRATION BY INDIAN TRIBES.— 
(1) IN GENERAL.—The Secretary shall require 
that each Indian tribe receiving grant amounts 
under this Act— 
(A) submit an annual plan to the Secretary 
with respect to implementing and complying 
with the requirements of this Act; and 
(B) consider distributing some or all 
amounts allocated to the Indian tribe through 
community development financial institutions. 
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(2) ANNUAL PLAN.—The annual plan required 
under paragraph (1) may be included in the Indian 
Housing Plan submitted to the Secretary by such 
Indian tribe. 
(3) OUTSOURCING PERMITTED.—The Secretary 
may permit a Tribe to contract with one or more of 
the following to provide amounts to eligible persons 
on behalf of the Tribe: 
(A) A tax-exempt private or public non-
profit organization approved by the Secretary. 
(B) A Tribally designated housing entity. 
(C) An intertribal consortium. 
(D) A community development financial in-
stitution. 
(4) 
PREFERENCE
PERMITTED.—An 
Indian 
tribe that receives amounts under this Act may pro-
vide preference to eligible persons who are members 
of such Indian tribe as well as to members of other 
Indian tribes. 
SEC. 4. FINANCIAL COUNSELING REQUIREMENT. 
(a) IN GENERAL.—A State or Indian tribe may only 
provide assistance under this Act to an eligible person if 
such eligible person, before receiving such assistance, com-
pletes a financial counseling program with respect to the 
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responsibilities and financial management of homeowner-
ship. 
(b) APPROVAL AND MANNER OF PROGRAM.—The fi-
nancial counseling program shall be conducted by an enti-
ty that provides financial counseling approved by, and in 
a manner acceptable to— 
(1) the Secretary; or 
(2) the Indian tribe or State providing assist-
ance to the eligible person. 
SEC. 5. AUTHORIZATION OF APPROPRIATIONS; ADMINIS-
TRATIVE COSTS. 
(a) IN GENERAL.—There is authorized to be appro-
priated $6,700,000,000 for each of fiscal years 2026 
through 2030 to carry out this Act. 
(b) PROGRAM ADMINISTRATION.— 
(1) FOR STATES.—Not more than 7 percent of 
any amounts provided to a State under this Act may 
be used by such State to cover administrative costs. 
(2) FOR INDIAN TRIBES.—Not more than 10 
percent of any amounts provided to an Indian Tribe 
under this Act may be used by such Indian Tribe to 
cover administrative costs. 
(c) TRAINING AND TECHNICAL ASSISTANCE.—Not 
more than 3 percent of any amounts appropriated under 
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this Act may be used by the Secretary to provide training 
and technical assistance to States and Indian tribes. 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—The term ‘‘community development fi-
nancial institution’’ has the meaning given the term 
in section 103 of the Community Development 
Banking and Financial Institutions Act of 1994. 
(2) ELIGIBLE
HOME.—The term ‘‘eligible 
home’’ means a residential property, including a con-
dominium, cooperative, or manufactured housing 
unit, that— 
(A) consists of 1 to 4 dwelling units, in-
cluding accessory dwelling units; 
(B) is subject to a mortgage, and— 
(i) meets the underwriting require-
ments and dollar amount limitations for 
acquisition by the Federal National Mort-
gage Association or the Federal Home 
Loan Mortgage Corporation; 
(ii) is made, insured, or guaranteed 
under any program administered by the 
Secretary; 
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(iii) is made, insured, or guaranteed 
by the Rural Housing Administrator of the 
Department of Agriculture; 
(iv) is a qualified mortgage, as defined 
in section 129C(b)(2) of the Truth in 
Lending Act (15 U.S.C. 1639c(b)(2)); 
(v) is made, insured, or guaranteed by 
the Secretary of Veterans Affairs pursuant 
to chapter 37 of title 38, United States 
Code; or 
(vi) in the case of a residential prop-
erty located on tribal trust or reservation 
land, meets such requirements as the Sec-
retary determines appropriate for con-
sumer protection; and 
(C) shall be occupied by an eligible person 
as a primary residence. 
(3) ELIGIBLE PERSON.— 
(A) IN GENERAL.—The term ‘‘eligible per-
son’’ means— 
(i) a person who, as self-attested by 
the person, is a ‘‘first-time homebuyer’’; 
and 
(ii) is a part of a household, the in-
come of which does not exceed— 
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(I) in the case of a person pur-
chasing an eligible home that is not 
located on Indian tribe land, 120 per-
cent of the median income for the 
local area, as determined by the Sec-
retary, within which— 
(aa) the eligible home, for 
which the ownership interest is to 
be acquired using such assist-
ance, is located; or 
(bb) the place of residence 
of the homebuyer is located; and 
(II) in the case of a person who 
is purchasing an eligible home that is 
located on Indian tribe land, the 
greater of 120 percent of the median 
income of the United States or 120 
percent of the median income for the 
local area, as determined by the Sec-
retary, within which— 
(aa) the eligible home, for 
which the ownership interest is to 
be acquired using such assist-
ance, is located; or 
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(bb) the place of residence 
of the homebuyer is located. 
(B) EXCEPTION.—If the Secretary deter-
mines that the area described in subparagraph 
(A)(ii) is a high cost-of-living area, then the eli-
gible person is required to be a part of a house-
hold, the income of which does not exceed 150 
percent of the median income for the area, as 
determined by the Secretary. 
(4) FIRST-TIME HOMEBUYER.—The term ‘‘first- 
time homebuyer’’ has the meaning given the term is 
defined in section 104 of the Cranston Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12704). 
(5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4103). 
(6) OWNERSHIP INTEREST.—The term ‘‘owner-
ship interest’’ means any ownership, excluding any 
interest in heir property, in— 
(A) real estate in fee simple; 
(B) a leasehold on real estate, under a 
lease that is not less than 10 years longer than 
the term of the mortgage; 
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(C) a fee interest in, or long-term leasehold 
interest in, real estate consisting of a one-family 
unit in a multifamily project, including a 
project in which the dwelling units are attached, 
or are manufactured housing units, semi-de-
tached, or detached, and an undivided interest 
in the common areas and facilities which serve 
the project. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(8) STATE.—The term ‘‘State’’ means the 50 
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, Guam, the 
Commonwealth of the Northern Mariana Islands, 
the Virgin Islands, and American Samoa. 
Æ 
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