(ii) includes information with respect 
to— 
(I) the responsibilities and finan-
cial management required with re-
spect to owning a home; and 
(II) fair housing rights and how 
to file a fair housing complaint; and 
(iii) is completed prior to filling out a 
loan application or entering into a sales 
purchase agreement. 
(B) FUNDING.—The Secretary shall re-
serve not less than 5 percent of the funds made 
available to carry out this section to pay for the 
costs of the housing counseling required under 
subparagraph (A) for eligible educators. 
(e) DEFINITIONS.—In this section: 
(1) ELIGIBLE DWELLING.— 
(A) IN
GENERAL.—The term ‘‘eligible 
dwelling’’ means a residential property, an 
apartment, a condominium, or a manufactured 
dwelling unit. 
(B) LIMITATION.—An eligible dwelling 
does not include a residential property that con-
tains more than 4 dwelling units. 
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(2) ELIGIBLE EDUCATOR.—The term ‘‘eligible 
educator’’ means a public elementary or secondary 
school teacher, principal, paraprofessional, school 
leader, or other staff who— 
(A) is a first-time homebuyer; 
(B) has served in their position or another 
position in the educational system for not less 
than a total of 3 years (without regard to 
whether such years were consecutive); 
(C) has a qualifying income; and 
(D) is in good standing. 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a unit of local government; 
(B) a State housing finance agency; or 
(C) a local educational agency. 
(4) 
ELIGIBLE
RESIDENTIAL
MORTGAGE 
LOAN.—The term ‘‘eligible residential mortgage 
loan’’ means a residential mortgage loan that— 
(A) meets the underwriting requirements 
and dollar amount limitations for acquisition by 
the Federal National Mortgage Association or 
the Federal Home Loan Mortgage Corporation; 
(B) is made, insured, or guaranteed under 
title II of the National Housing Act (12 U.S.C. 
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1707 et seq.) or title V of the Housing Act of 
1949 (42 U.S.C. 1471 et seq.); 
(C) is a qualified mortgage, as such term 
is defined in section 129C(b)(2) of the Truth in 
Lending Act (15 U.S.C. 1639c(b)(2)); 
(D) is made, insured, or guaranteed under 
chapter 37 of title 38, United States Code; or 
(E) is guaranteed under section 184 of the 
Housing and Community Development Act of 
1992 (12 U.S.C. 1715z–13a). 
(5) EMERGENCY
EVENT.—The term ‘‘emer-
gency event’’ includes— 
(A) military deployment; 
(B) divorce; 
(C) death of an eligible educator or spouse; 
and 
(D) other similar unforeseen events as de-
termined by the Secretary. 
(6) ESEA TERMS.—The terms ‘‘elementary 
school’’, ‘‘local educational agency’’, ‘‘other staff’’, 
‘‘secondary school’’, and ‘‘Secretary’’ have the mean-
ings given such terms in section 8101 of the Ele-
mentary and Secondary Education Act of 1965 (20 
U.S.C. 7801). 
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(7) FIRST-TIME HOMEBUYER.—The term ‘‘first- 
time homebuyer’’ has the meaning given such term 
in section 92.2 of title 24, Code of Federal Regula-
tions (as in effect on the date of the enactment of 
this Act), except that any reference in such section 
to the American Dream Downpayment Initiative 
shall be deemed to be a reference to the grant pro-
gram established under this section. 
(8) GOOD STANDING.— 
(A) IN GENERAL.—The term ‘‘good stand-
ing’’ means that, with respect to an eligible ed-
ucator and for the period described in subpara-
graph (B), such educator has not received dis-
ciplinary action from the local educational agen-
cy that serves the school at which such educator 
works as an educator. 
(B) PERIOD.—The period described in sub-
paragraph (A)— 
(i) begins on the date that is 3 years 
before the date described in clause (ii); and 
(ii) ends on the date on which such 
educator submits an application under sub-
section (c). 
(9) QUALIFYING INCOME.— 
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(A) IN GENERAL.—The term ‘‘qualifying 
income’’ means, except as provided in subpara-
graph (B), an income that does not exceed 120 
percent of the area median income in which the 
eligible dwelling to be purchased is located. 
(B) HIGH-COST
AREA.—If the Secretary 
makes a determination that an area described 
in subparagraph (A) is a high-cost area, the 
qualifying income shall be an income that does 
not exceed 180 percent of the median income of 
such area. 
Æ 
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