H.R.4023 - American Dream for All Act (119th Congress)
Summary
H.R. 4023, the "American Dream for All Act," aims to establish a pilot program within the Department of Housing and Urban Development (HUD) to provide down payment assistance loans to eligible first-time and first-generation homebuyers. The program would award grants to states, territories, and Indian tribes, which would then administer revolving loan funds. These funds would offer down payment assistance loans, with specific terms and limitations, to eligible borrowers.
Expected Effects
The bill's enactment would likely increase homeownership rates among eligible borrowers by reducing the financial barrier of down payments. It would also create a new layer of bureaucracy within HUD and state/tribal agencies to manage the program. The bill also stipulates that the loan must be repaid upon sale of the home, including a portion of any appreciation in value.
Potential Benefits
- Increased homeownership opportunities for first-time and first-generation homebuyers.
- Potential stimulation of the housing market through increased demand.
- Support for state and tribal housing finance agencies.
- Provision of homebuyer education and counseling.
- Targeted assistance to individuals with limited financial resources.
Potential Disadvantages
- Potential for increased government debt due to the appropriation of funds for the program.
- Risk of default on loans, leading to financial losses for the state loan funds.
- Administrative overhead costs associated with managing the program.
- Complexity in determining eligibility and administering the loan repayment process.
- Potential for market distortions in the housing market.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to promote homeownership and financial stability for certain individuals. Congress has the power to appropriate funds for programs deemed to promote the general welfare. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).