American Dream for All Act

Bill Number

H.R. 4023

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Housing and Community Development

Status

Introduced

Latest Action

2025-06-17: Referred to the House Committee on Financial Services.

Last Updated

2026-04-21T08:06:16Z

AI-Generated Summary

## Purpose The legislation establishes a pilot program under the Department of Housing and Urban Development (HUD) to provide capitalization grants to states, territories, and Indian tribes. These grants support revolving loan funds that offer down payment assistance loans to eligible first-time or first-generation homebuyers, with the goal of increasing access to homeownership through shared-appreciation repayment.

## Key Provisions

• Grant Structure and Eligibility: HUD must create the program within one year. Grants go to state or tribal agencies (including housing finance agencies) that maintain a revolving "State loan fund." Amounts are allocated proportionally based on population.
• Loan Terms: Loans range from 3% to 20% of the home's purchase price, with caps of $50,000 (low-cost areas), $100,000 (medium-cost), or $150,000 (high-cost), adjusted annually for inflation. Funds may cover administrative costs up to 15%. Distribution occurs on a first-come, first-served or lottery basis, with options for pre-purchase approval and renewal.
• Repayment Rules: Upon home sale, borrowers repay the loan principal plus a share of any appreciation (or just the principal if the home depreciates). Repaid funds return to the revolving loan fund for reuse.
• Borrower Requirements: Applicants must be U.S. citizens or permanent residents, complete HUD-approved homebuyer education and counseling, earn no more than 150% of area median income, and self-attest inability to pay more than 5% down. Special rules apply for first-time and first-generation homebuyers, including treatment of heir property.
• Reporting and Funding: Annual reports from grantees cover loan distribution and outcomes. HUD submits an implementation report to Congress. Appropriations are authorized for fiscal years 2026 through 2030.

## Significant Changes to Existing Law This bill creates a new federal pilot program for shared-appreciation down payment assistance. It does not amend existing statutes but introduces revolving loan mechanisms and specific borrower definitions (such as "first-generation homebuyer") that expand eligibility beyond traditional first-time buyer criteria in prior housing laws.

## Potential Impacts

• Government Agencies: HUD gains oversight responsibilities for grant allocation, cost-category classifications, and reporting. State and tribal housing agencies must establish or maintain revolving funds and manage distributions.
• Citizens: The program could assist income-eligible individuals in purchasing homes by reducing upfront costs, with repayment tied to home value changes.
• International Relations: No direct effects are outlined.

## Main Stakeholders Affected

• HUD and its Secretary.
• State, territorial, and tribal governments, including their housing finance agencies.
• Eligible borrowers, particularly first-time and first-generation homebuyers meeting income and education criteria.
• Housing counseling agencies approved by HUD.

## Notable Legal, Constitutional, or Political Implications The bill relies on federal grants to subnational entities, consistent with existing housing programs, and incorporates self-attestation for certain eligibility factors. As a time-limited pilot (with reporting requirements), it allows evaluation before potential expansion. No explicit constitutional issues are addressed in the text.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Carbajal, Salud O. [D-CA-24]

Cosponsors (2)

Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Sherman, Brad [D-CA-32]

Recent Actions

• 2025-06-17: Referred to the House Committee on Financial Services.
• 2025-06-17: Introduced in House
• 2025-06-17: Introduced in House

Bill Versions

• American Dream for All Act — issued 2025-06-17 — PDF (9 pages)