I 
119TH CONGRESS 
1ST SESSION H. R. 4023 
To direct the Secretary of Housing and Urban Development to establish 
a pilot program to award grants to States, territories, and Indian tribes 
to provide down payment assistance loans to certain borrowers, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 17, 2025 
Mr. CARBAJAL introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To direct the Secretary of Housing and Urban Development 
to establish a pilot program to award grants to States, 
territories, and Indian tribes to provide down payment 
assistance loans to certain borrowers, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Dream for 
All Act’’. 
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SEC. 2. APPRECIATION SHARING DOWN PAYMENT LOAN 
PILOT PROGRAM. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this section, the Secretary of 
Housing and Urban Development (hereafter referred to as 
the ‘‘Secretary’’) shall establish a pilot program to award 
capitalization grants to eligible entities. 
(b) ELIGIBLE ENTITY.—To be eligible to receive a 
grant under this section, an entity shall— 
(1) be an agency of a State or Indian tribe, or 
instrumentality thereof, including a State or Indian 
tribe housing finance agency; and 
(2) have or establish a revolving loan fund 
(hereafter referred to a ‘‘State loan fund’’) for the 
purpose of providing down payment assistance loans. 
(c) DETERMINATION OF AMOUNT.—The Secretary 
shall award grants under this section in amounts that are 
proportional to the population of the State or Indian tribe 
in which the grant amounts are directed, as determined 
by the Secretary. 
(d) USE OF FUNDS.— 
(1) IN
GENERAL.—An eligible entity that is 
awarded a grant under this section— 
(A) shall deposit such grant amounts into 
the State loan fund of such eligible entity; 
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(B) shall provide down payment assistance 
loans with such grant amounts from the State 
loan fund to eligible borrowers in an amount 
that is— 
(i) not more than 20 percent of the 
purchase price of the home; and 
(ii) not less than 3 percent of the pur-
chase price of the home; 
(C) shall distribute such assistance loans 
to eligible borrowers— 
(i) on a first-come, first-serve basis; or 
(ii) by lottery option; 
(D) may not use more than 15 percent of 
such grant amounts for administrative costs; 
and 
(E) may determine any additional require-
ments for eligible borrowers with respect to the 
first mortgage of the home. 
(2) DISTRIBUTION OF LOANS.—An eligible enti-
ty that distributes down payment assistance loans 
with amounts provided under this section may— 
(A) distribute such assistance loan to an 
eligible borrower prior to the purchase of a 
home; and 
(B) provide the eligible borrower with— 
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(i) a certain time period to locate a 
home and enter a purchase sale contract, 
as determined by the eligible entity based 
on market conditions; and 
(ii) the option to renew the loan offer, 
one time, as determined by the eligible en-
tity. 
(e) TERMS AND LIMITATIONS.— 
(1) REPAYMENT.— 
(A) REPAYMENT
FROM
BORROWER.—An 
eligible borrower that receives a down payment 
assistance loan with amounts provided under 
this section shall, upon the sale of the home 
purchased with the assistance of such loan, 
repay such assistance loan to the eligible entity 
that distributed such assistance loan in an 
amount that is equal to— 
(i) with respect to a home that appre-
ciates in value— 
(I) the amount of such loan; and 
(II) the amount that is equal to 
the percentage of such loan of the 
purchase price of the home multiplied 
by the amount of appreciation of the 
home; or 
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(ii) with respect to a home that depre-
ciates in value, the amount of such loan. 
(B RETURN TO STATE LOAN FUND.—An 
eligible entity that receives repayment under 
subparagraph (A) shall return the amounts 
from the repayment back into the State loan 
fund, to be redistributed as a down payment as-
sistance loan as described in this section. 
(2) MAXIMUM LOAN AMOUNT.— 
(A) IN
GENERAL.—The maximum loan 
amount provided to an eligible borrower shall 
be— 
(i) $150,000 in a high-cost State or 
Indian tribe; 
(ii) $100,000 in a medium-cost State 
or Indian tribe; and 
(iii) $50,000 in a low-cost State or In-
dian tribe. 
(B) CLASSIFICATION.—Annually, the Sec-
retary, in consultation with the eligible entity in 
each State or Indian tribe that is awarded a 
grant under this section— 
(i) shall determine the cost-category 
described in subparagraph (A) of such 
State or Indian tribe; and 
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(ii) shall increase or decrease the 
maximum loan amounts described in sub-
paragraph (A) based on the consumer 
price index. 
(f) REPORTS.— 
(1) REPORTS TO THE SECRETARY.—An eligible 
entity that is awarded a grant under this section 
shall submit to the Secretary a report, on an annual 
basis or as determined appropriate by the Secretary, 
that includes— 
(A) the number of down payment assist-
ance 
loans 
distributed 
using 
such 
grant 
amounts; 
(B) the number of home sales processed 
using down payment assistance loans; 
(C) the amount of each down payment as-
sistance loan distributed; and 
(D) any other data as determined appro-
priate by the Secretary. 
(2) REPORT
TO
THE
CONGRESS.—Not later 
than 1 year after the pilot program has been estab-
lished, the Secretary shall submit to the Committee 
on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and 
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Urban Affairs of the Senate a report with respect to 
the implementation of the pilot program. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary such sums 
as may be necessary for each of fiscal years 2026 through 
2030 to carry out this section. 
(h) DEFINITIONS.—In this section: 
(1) ELIGIBLE BORROWER.—The term ‘‘eligible 
borrower’’ means an individual that— 
(A) is a citizen or permanent resident of 
the United States; 
(B) is a first-time homebuyer or a first- 
generation homebuyer; 
(C) has completed a homebuyer education 
course, as determined appropriate by the Sec-
retary, including individual counseling; 
(D) has a certificate of completion from a 
Housing Counseling Agency approved by the 
Secretary; 
(E) has an income that is not more than 
150 percent of the area median income; and 
(F) by self-attestation, does not have the 
ability to pay more than 5 percent of the total 
value of the home for which a loan under this 
section is used. 
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(2) FIRST-TIME HOMEBUYER.—The term ‘‘first- 
time homebuyer’’ has the meaning given the term in 
section 104 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12704), except 
that for the purposes of this section the reference in 
such section 104 to title II shall be considered to 
refer to this section, and except that ownership of 
heir property shall not be treated as owning a home 
for purposes of determining whether a borrower 
qualifies as a first-time homebuyer. 
(3) 
FIRST-GENERATION
HOMEBUYER.—The 
term ‘‘first-generation homebuyer’’ means a home-
buyer who is, as self-attested by the homebuyer— 
(A) an individual— 
(i) whose parents or legal guardians 
do not, or did not at the time of their 
death, to the best of the individual’s knowl-
edge, have any present ownership interest 
in a residence in any State, excluding own-
ership of heir property or ownership of 
chattel; and 
(ii) whose spouse or domestic partner 
has not, during the 3-year period ending 
upon acquisition of the eligible home to be 
acquired using such assistance, had any 
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present ownership interest in a residence 
in any State, excluding ownership of heir 
property or ownership of chattel, whether 
the individual is a co-borrower on the loan 
or not; or 
(B) an individual who has at any time 
been placed in foster care or institutional care 
whose spouse or domestic partner has not, dur-
ing the 3-year period ending upon acquisition of 
the eligible home to be acquired using such as-
sistance, had any ownership interest in a resi-
dence in any State, excluding ownership of heir 
property or ownership of chattel, whether such 
individual is a co-borrower on the loan or not. 
(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 248(i) of 
the National Housing Act (12 U.S.C. 1715z–13(i)). 
(5) STATE.—The term ‘‘State’’ has the mean-
ing given the term in section 201(d) of the National 
Housing Act (12 U.S.C. 1707). 
Æ 
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