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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5473 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 5473
To establish Homeownership Promise Accounts to provide matching
downpayment grants, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 23, 2026
Mr. Merkley (for himself and Mr. Wyden) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To establish Homeownership Promise Accounts to provide matching
downpayment grants, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Homeownership Promise Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Community development financial institution.--The term
``community development financial institution'' has the meaning
given the term in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (15 U.S.C.
4702).
(2) Eligible family.--The term ``eligible family'' means 1
or 2 first-time homebuyers who are not less than 18 years old.
(3) Eligible home.--The term ``eligible home'' means a
principal residence acquired by an eligible family at a
purchase price, not including closing costs, that does not
exceed the median single-family purchase price for the area as
determined by the Secretary with such adjustments for
differences in structure, and for new and old housing as the
Secretary determines to be appropriate.
(4) First-time homebuyer.--The term ``first-time
homebuyer'' means an individual who--
(A) has never owned a principal residence; and
(B) has completed a housing counseling program
approved by the Department of Housing and Urban
Development.
(5) Principal residence.--The term ``principal residence''
means a dwelling that is--
(A) physically occupied by an eligible family on a
permanent basis; and
(B) the address of record for the eligible family
for Federal income tax reporting, voter registration,
or occupational licensing, if applicable.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 3. HOMEOWNERSHIP PROMISE ACCOUNTS.
(a) Establishment.--The Secretary shall establish a matching
downpayment grant, to be known as a Homeownership Promise Account, that
is accessible to eligible families for downpayment expenses at the
closing settlement of an eligible home.
(b) Account Requirements.--
(1) In general.--An eligible family may open a
Homeownership Promise Account at any participating community
development financial institution.
(2) Interest accrued.--A community development financial
institution that makes Homeownership Promise Accounts available
to eligible families shall pay an interest rate comparable to
the rate offered to unrestricted savings accounts at the
institution.
(3) Balance.--The balance of a Homeownership Promise
Account--
(A) prior to the closing of an eligible home, shall
only contain the personal contributions made by an
eligible family; and
(B) may not exceed $60,000 (excluding interest), of
which--
(i) not more than $10,000 (excluding
interest) may consist of--
(I) personal contributions made by
an eligible family, which are not
required to be made on a consecutive,
yearly basis;
(II) contributions made by the
employer of a member of an eligible
family on behalf of that member; and
(III) contributions made by a
nonprofit organization on behalf of a
member of an eligible family; and
(ii) not more than $50,000 may consist of
matching contributions made by the Secretary
under paragraph (4).
(4) Matching requirement.--For every $1 made in personal
contributions by an eligible family under paragraph
(3)(B)(i)(I), the Secretary shall make a matching grant of $5,
for a total contribution by the Secretary of not more than
$50,000.
(5) Emergency withdrawal.--An eligible family may make an
emergency withdrawal of personal contributions made under
paragraph (3)(B)(i)(I) for any reason, including expenses
unrelated to the closing of an eligible home, in any amount.
(6) Settlement.--At the closing for the purchase of an
eligible home, not more than 2 eligible families with
Homeownership Promise Accounts may contribute amounts to the
closing from the accounts.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this section.
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