For further action, see S. 811,
which became Public Law 108-186 on 12/16/2003.

To provide downpayment assistance under the HOME Investment Partnerships Act, and for other purposes.

To provide downpayment assistance under the HOME Investment Partnerships Act, 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 `American Dream Downpayment Act'.

SEC. 2. DOWNPAYMENT ASSISTANCE INITIATIVE UNDER HOME PROGRAM.

(a) DOWNPAYMENT ASSISTANCE INITIATIVE- Subtitle E of title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12821) is amended to read as follows:

`Subtitle E--Other Assistance

`SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.

`(a) GRANT AUTHORITY- The Secretary may make grants to participating jurisdictions to assist low-income families to achieve homeownership, in accordance with this section.

`(b) ELIGIBLE ACTIVITIES-

`(1) IN GENERAL- Amounts made available under this section may be used only for downpayment assistance toward the purchase of single family housing by eligible families. For purposes of this title, the term `downpayment assistance' means assistance to help a family acquire a principal residence.

`(2) ELIGIBLE FAMILIES- For purposes of this section, the term `eligible family' means a family who--

`(A) is a low-income family and a first-time homebuyer; or

`(B) notwithstanding the income limitation under section 215(b)(2)--

`(i) includes a uniformed employee (which shall include policemen, firemen, and sanitation and other maintenance workers) or a teacher who is an employee, of the participating jurisdiction (or an agency or school district serving such jurisdiction) that is providing the downpayment assistance under this section for the family; and

`(ii) has an income, at the time referred to in subparagraph (A), (B), or (C) of section 215(b)(2), as appropriate, and as determined by the Secretary with adjustments for smaller and larger families, that does not exceed 115 percent of the median income of the area, except that, with respect only to such areas that the Secretary determines have high housing costs, taking into consideration median house prices and median family incomes for the area, such income limitation shall be 150 percent of the median income of the area, as determined by the Secretary with adjustments for smaller and larger families.

`(c) HOUSING STRATEGY- To be eligible to receive a grant under this section for a fiscal year, a participating jurisdiction shall include in its comprehensive housing affordability strategy under section 105 for such year--

`(1) a description of the use of the grant amounts;

`(2) a plan for conducting targeted outreach to residents and tenants of public housing, trailer parks, and manufactured housing, and to other families assisted by public housing agencies, for the purpose of ensuring that grant amounts provided under this section to a participating jurisdiction are used for downpayment assistance for such residents, tenants, and families; and

`(3) a description of the actions to be taken to ensure the suitability of families provided downpayment assistance under this section to undertake and maintain homeownership.

`(d) FORMULA ALLOCATION- For each fiscal year, the Secretary shall allocate any amounts made available for assistance under this section for the fiscal year in accordance with a formula, which shall be established by the Secretary, that considers a participating jurisdiction's need for and prior commitment to assistance to homebuyers. The formula may include minimum allocation amounts. In considering a participating jurisdiction's prior year's commitment to assistance to homebuyers, the formula shall consider amounts committed to such purpose under the HOME investment partnerships program, the community development block grant program, mortgage revenue bonds, and prior year's funding from State and local governments, provided that the data underlying such funding is uniform, verifiable, and accurate by the State and local government, and shall consider other factors that the Secretary determines to be appropriate.

`(e) REALLOCATION- If any amounts allocated to a participating jurisdiction under this section become available for reallocation, the amounts shall be reallocated to other participating jurisdictions in accordance with the formula established pursuant to subsection (d), except that if a local participating jurisdiction failed to receive amounts allocated under this section and is located in a State that is a participating jurisdiction, the funds shall be reallocated to the State.

`(f) APPLICABILITY OF OTHER PROVISIONS-

`(1) IN GENERAL- Except as otherwise provided in this section, grants under this section shall not be subject to the provisions of this title.

`(2) APPLICABLE PROVISIONS- In addition to the requirements of this section, grants under this section shall be subject to the provisions of title I, sections 215(b) (except as provided in subsection (b)(2)(B) of this section), 218, 219, 221, 223, 224, and 226(a) of subtitle A of this title, and subtitle F of this title.

`(3) REFERENCES- In applying the requirements of subtitle A referred to in paragraph (2)--

`(A) any references to funds under subtitle A shall be considered to refer to amounts made available for assistance under this section; and

`(B) any references to funds allocated or reallocated under section 217 or 217(d) shall be considered to refer to amounts allocated or reallocated under subsection (d) or (e) of this section, respectively.

`(g) ADMINISTRATIVE COSTS- Notwithstanding section 212(c), a participating jurisdiction may use funds under subtitle A for administrative and planning costs of the jurisdiction in carrying out this section, and the limitation in section 212(c) shall be based on the total amount of funds available under subtitle A and this section.

`(h) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section $200,000,000 for each of fiscal years 2004 and 2005.'.

(b) RELOCATION ASSISTANCE AND DOWNPAYMENT ASSISTANCE- Subtitle F of title II of the Cranston-Gonzalez National Affordable Housing Act is amended by inserting after section 290 (42 U.S.C. 12840) the following new section:

`SEC. 291. RELOCATION ASSISTANCE AND DOWNPAYMENT ASSISTANCE.

`The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 shall not apply to downpayment assistance under this title.'.

Passed the House of Representatives October 1, 2003.

Attest:

Clerk.

END