I 
117TH CONGRESS 
1ST SESSION H. R. 4495 
To provide downpayment assistance to first-generation homebuyers to address 
multigenerational inequities in access to homeownership and to narrow 
and ultimately close the racial homeownership gap in the United States, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 16, 2021 
Ms. WATERS (for herself, Mr. GREEN of Texas, Ms. PRESSLEY, Mr. GARCI´A 
of Illinois, Ms. GARCIA of Texas, Mrs. AXNE, Mr. CLEAVER, Ms. 
VELA´ZQUEZ, Mr. LAWSON of Florida, Ms. OCASIO-CORTEZ, Ms. TLAIB, 
Mr. TORRES of New York, Ms. WILLIAMS of Georgia, Mr. AUCHINCLOSS, 
Mr. LIEU, Ms. LEE of California, Mr. SIRES, Ms. CLARKE of New York, 
Mr. EVANS, Mr. ESPAILLAT, Ms. MOORE of Wisconsin, Mr. BLU-
MENAUER, Ms. NORTON, Mr. BOWMAN, Ms. ROSS, Ms. SCHAKOWSKY, 
Ms. SA´NCHEZ, and Mr. VICENTE GONZALEZ of Texas) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services 
A BILL 
To provide downpayment assistance to first-generation home-
buyers to address multigenerational inequities in access 
to homeownership and to narrow and ultimately close 
the racial homeownership gap in the United States, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Downpayment Toward 
Equity Act of 2021’’. 
SEC. 2. FIRST-GENERATION DOWNPAYMENT ASSISTANCE 
DOWNPAYMENT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Housing 
and Urban Development shall carry out a program under 
this Act to provide grants to States and eligible entities 
to provide financial assistance under this Act to first-gen-
eration homebuyers to assist them with acquiring owner- 
occupied primary residences. 
(b) ALLOCATION.—After reserving amounts as re-
quired under sections 6(d) and 8(b), any remaining 
amounts made available to carry out this Act shall be allo-
cated as follows: 
(1) STATES.—75 percent of such amounts shall 
be allocated among States in accordance with a for-
mula established by the Secretary, which shall take 
into consideration— 
(A) adult population size (excluding exist-
ing homeowners); 
(B) median area home prices; and 
(C) racial disparities in homeownership 
rates. 
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(2) ELIGIBLE ENTITIES.—25 percent of such 
amounts shall be made available only to eligible enti-
ties on a competitive basis. 
(c) ASSISTANCE.—Amounts from a grant under this 
Act shall be used only to provide assistance— 
(1) on behalf of a qualified homebuyer; and 
(2) for— 
(A) costs in connection with the acquisi-
tion, involving an eligible mortgage loan, of an 
eligible home, including downpayment costs, 
closing costs, and costs to reduce the rates of 
interest on eligible mortgage loans; 
(B) for subsidies to make shared equity 
homes affordable to eligible homebuyers by dis-
counting the price for which the home will be 
sold and to preserve the home’s affordability for 
subsequent eligible buyers; and 
(C) for pre-occupancy home modifications 
required to accommodate qualified homebuyers 
or members of their household with disabilities. 
(d) AMOUNT.—A grant of assistance under this 
Act— 
(1) may be provided on behalf of any qualified 
homebuyer only once; and 
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(2) may not exceed $20,000, or $25,000 in the 
case of a qualified homebuyer who is a socially and 
economically disadvantaged individual, except that 
the Secretary may increase such maximum limita-
tion amounts in the case of qualified homebuyers ac-
quiring residences located in high-cost areas, as de-
termined based on median home prices or prices of 
residences under a shared equity homeownership 
program. 
(e) LAYERING
OF ASSISTANCE.—Assistance from 
grant amounts under this Act may be provided on behalf 
of a qualified homebuyer who is receiving assistance from 
other sources, including other State, Federal, local, pri-
vate, public, and nonprofit sources, for acquisition of an 
eligible home. 
(f) STATE ADMINISTRATION.— 
(1) IN GENERAL.—The Secretary shall require 
that each State receiving grant amounts under this 
Act administer the program to provide assistance 
with such amounts through the State housing fi-
nance agency for the State or such other housing 
agency of the State as the Secretary finds appro-
priate, except that any such agency may, at the op-
tion of the agency, contract with a nonprofit entity, 
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including a housing counseling agency approved by 
the Secretary, to administer such assistance. 
(2) AFFIRMATIVELY FURTHERING FAIR HOUS-
ING.—For a State to be eligible for a grant under 
this Act, the State shall be in compliance with the 
Secretary’s regulations implementing the require-
ment under section 808(e)(5) of the Fair Housing 
Act (42 U.S.C. 3608(e)(5)) to affirmatively further 
fair housing. 
(3) PROHIBITION
OF
PRIORITY.—In selecting 
qualified homebuyers for assistance with grant 
amounts under this Act, a State or eligible entity 
may not provide any priority or preference for home-
buyers who are acquiring eligible homes with a mort-
gage loan made, insured, guaranteed, or otherwise 
assisted by the State housing finance agency for the 
State, any other housing agency of the State, or an 
eligible entity when applicable. 
(g) REALLOCATION OF STATE AMOUNTS.—The Sec-
retary shall reallocate any grant funds under this Act allo-
cated for a fiscal year that remain unused at the end of 
such fiscal year among States and eligible entities that 
demonstrate to the Secretary the capacity to expend such 
amounts and that are satisfactorily meeting the goals of 
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the program under this Act, as determined by the Sec-
retary. 
(h) UNIFORMITY
AND
PROGRAM
STANDARDIZA-
TION.—The Secretary shall establish a uniform set of re-
quirements to which each State and eligible entity receiv-
ing grant amounts under this Act shall comply. 
SEC. 3. QUALIFIED HOMEBUYERS. 
(a) 
REQUIREMENTS.—Assistance 
from 
grant 
amounts under this Act may be provided only on behalf 
of a homebuyer who meets all of the following require-
ments: 
(1) INCOME.—The household of the homebuyer 
has an income that does not exceed— 
(A) 120 percent of median income for the 
area (as determined by the Secretary) within 
which— 
(i) the eligible home to be acquired 
using such assistance is located; or 
(ii) the place of residence of the home-
buyer is located; or 
(B) in the case of a homebuyer acquiring 
an eligible home that is located in a high-cost 
area. as determined by the Secretary, 180 per-
cent of the median income for the area within 
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which the eligible home to be acquired using 
such assistance is located; and 
(2) FIRST-TIME HOMEBUYER.—The homebuyer, 
as self-attested by the homebuyer, is a first-time 
homebuyer, as such term is defined in section 92.2 
of the Secretary’s regulations (24 C.F.R. 92.2), ex-
cept that for purposes of this subsection the ref-
erence in such section 92.2 to the American Dream 
Downpayment Initiative shall be considered to refer 
to the program under this Act. 
(3) 
FIRST-GENERATION
HOMEBUYER.—The 
homebuyer is, as self-attested by the homebuyer— 
(A) an individual— 
(i) whose parents or legal guardians 
do not have any present residential owner-
ship interest in any State; and 
(ii) whose spouse, or domestic part-
ner, and each member of whose household 
has not, during the 3-year period ending 
upon acquisition of the eligible home to be 
acquired using such assistance, had any 
present ownership interest in a principal 
residence in any State; or 
(B) an individual who has at any time 
been placed in foster care. 
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