Educator Down Payment Assistance Act of 2022
This bill requires the Department of Education to award grants for assisting certain elementary and secondary school educators with the purchase of a first home (e.g., by providing direct down payment costs). Entities eligible for the grants include local governments, state housing finance agencies, and local educational agencies.
To direct the Secretary of Education to award grants to provide 
  financial assistance to certain educators to make down payments on 
                 certain homes, 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 ``Educator Down Payment Assistance Act 
of 2022''.

SEC. 2. FIRST-TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM.

    (a) Establishment.--The Secretary of Education shall award grants, 
on a competitive basis, to eligible entities to award subgrants to 
eligible educators in accordance with subsection (d).
    (b) Application.--An eligible entity seeking a grant under this 
section shall submit to the Secretary an application in such form, at 
such time, and containing such information as the Secretary determines 
appropriate, including an assurance that such entity will utilize an 
existing, or establish a new, down payment assistance program to award 
subgrants to eligible educators.
    (c) Geographic Areas.--In the case of a geographic area that is 
served by an eligible entity that is a unit of local government and an 
eligible entity that is a local educational agency, the Secretary may 
only award a grant to 1 such entity in such geographic area.
    (d) Subgrants.--
            (1) In general.--An eligible entity that receives a grant 
        under subsection (a) shall use such grant funds to award 
        subgrants to eligible educators.
            (2) Application.--An eligible educator seeking a subgrant 
        under this subsection shall submit to the eligible entity an 
        application in such form, at such time, and containing such 
        information as the eligible entity determines appropriate, 
        including an assurance that such educator will--
                    (A) complete the housing counseling required under 
                paragraph (8); and
                    (B) use an eligible residential mortgage loan to 
                purchase an eligible dwelling.
            (3) Subgrant uses.--An eligible educator that receives a 
        subgrant under this subsection shall use such subgrant funds to 
        pay, with respect to the purchase of an eligible dwelling using 
        an eligible residential mortgage loan, for--
                    (A) direct down payment costs associated with such 
                purchase;
                    (B) closing costs associated with such purchase; 
                and
                    (C) costs related to reducing the rates of interest 
                on such eligible residential mortgage loan associated 
                with such purchase.
            (4) Subgrant amount.--
                    (A) In general.--Except as provided under 
                subparagraph (B), a subgrant awarded under this 
                subsection may not exceed $25,000.
                    (B) Exception.--In the case of an eligible educator 
                purchasing an eligible dwelling that is located in a 
                high-cost area (as determined by the Secretary based on 
                area median income), a subgrant awarded under this 
                subsection may exceed $25,000.
            (5) Subgrant limit.--An eligible educator may only receive 
        1 subgrant under this subsection.
            (6) Additional funds.--An eligible entity may award a 
        subgrant under this subsection to an eligible educator who is 
        receiving funds from other sources, including other State, 
        Federal, local, private, public, and nonprofit sources, for the 
        purpose of purchasing an eligible dwelling.
            (7) Occupancy requirement.--
                    (A) In general.--An eligible educator who is 
                awarded a subgrant under this subsection and makes a 
                down payment on an eligible dwelling with such subgrant 
                funds shall use such dwelling as a primary residence 
                for a period of not less than 3 years.
                    (B) Enforcement.--
                            (i) Return of funds.--An eligible educator 
                        who does not comply with the requirement under 
                        subparagraph (A) shall return to the eligible 
                        entity the total amount of the subgrant funds 
                        awarded to such educator under this subsection.
                            (ii) Timing.--Such funds shall be returned 
                        in accordance with clause (i) not later than 1 
                        year after such educator ceases to use such 
                        dwelling as a primary residence in violation of 
                        the requirement under subparagraph (A).
                            (iii) Exception.--An eligible educator who 
                        does not comply with the requirement under 
                        subparagraph (A) due to an emergency event 
                        shall not be required to return subgrant funds 
                        under clause (i).
            (8) Housing counseling requirement.--
                    (A) In general.--An eligible educator shall provide 
                to the eligible entity, in accordance with clause 
                (iii), proof of completion of a program of housing 
                counseling that--
                            (i) is offered--
                                    (I) by a housing counseling agency 
                                that is approved by the Department of 
                                Housing and Urban Development; and
                                    (II) in person, virtually, by 
                                telephone, or by any other method 
                                determined by the Secretary to be 
                                acceptable;
                            (ii) includes information with respect to--
                                    (I) the responsibilities and 
                                financial management required with 
                                respect to owning a home; and
                                    (II) fair housing rights and how to 
                                file a fair housing complaint; and
                            (iii) is completed prior to filling out a 
                        loan application or entering into a sales 
                        purchase agreement.
                    (B) Funding.--The Secretary shall reserve not less 
                than 5 percent of the funds made available to carry out 
                this section to pay for the costs of the housing 
                counseling required under subparagraph (A) for eligible 
                educators.
    (e) Definitions.--In this section:
            (1) Eligible dwelling.--
                    (A) In general.--The term ``eligible dwelling'' 
                means a residential property, an apartment, a 
                condominium, or a manufactured dwelling unit.
                    (B) Limitation.--An eligible dwelling does not 
                include a residential property that contains more than 
                4 dwelling units.
            (2) Eligible educator.--The term ``eligible educator'' 
        means a public elementary or secondary school teacher, 
        principal, paraprofessional, school leader, or other staff 
        who--
                    (A) is a first-time homebuyer;
                    (B) has served in their position or another 
                position in the educational system for not less than a 
                total of 3 years (without regard to whether such years 
                were consecutive);
                    (C) has a qualifying income; and
                    (D) is in good standing.
            (3) Eligible entity.--The term ``eligible entity'' means--
                    (A) a unit of local government;
                    (B) a State housing finance agency; or
                    (C) a local educational agency.
            (4) Eligible residential mortgage loan.--The term 
        ``eligible residential mortgage loan'' means a residential 
        mortgage loan that--
                    (A) meets the underwriting requirements and dollar 
                amount limitations for acquisition by the Federal 
                National Mortgage Association or the Federal Home Loan 
                Mortgage Corporation;
                    (B) is made, insured, or guaranteed under title II 
                of the National Housing Act (12 U.S.C. 1707 et seq.) or 
                title V of the Housing Act of 1949 (42 U.S.C. 1471 et 
                seq.);
                    (C) is a qualified mortgage, as such term is 
                defined in section 129C(b)(2) of the Truth in Lending 
                Act (15 U.S.C. 1639c(b)(2));
                    (D) is made, insured, or guaranteed under chapter 
                37 of title 38, United States Code; or
                    (E) is guaranteed under section 184 of the Housing 
                and Community Development Act of 1992 (12 U.S.C. 1715z-
                13a).
            (5) Emergency event.--The term ``emergency event'' 
        includes--
                    (A) military deployment;
                    (B) divorce;
                    (C) death of an eligible educator or spouse; and
                    (D) other similar unforeseen events as determined 
                by the Secretary.
            (6) ESEA terms.--The terms ``elementary school'', ``local 
        educational agency'', ``other staff'', ``secondary school'', 
        and ``Secretary'' have the meanings given such terms in section 
        8101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            (7) First-time homebuyer.--The term ``first-time 
        homebuyer'' has the meaning given such term in section 92.2 of 
        title 24, Code of Federal Regulations (as in effect on the date 
        of the enactment of this Act), except that any reference in 
        such section to the American Dream Downpayment Initiative shall 
        be deemed to be a reference to the grant program established 
        under this section.
            (8) Good standing.--
                    (A) In general.--The term ``good standing'' means 
                that, with respect to an eligible educator and for the 
                period described in subparagraph (B), such educator has 
                not received disciplinary action from the local 
                educational agency that serves the school at which such 
                educator works as an educator.
                    (B) Period.--The period described in subparagraph 
                (A)--
                            (i) begins on the date that is 3 years 
                        before the date described in clause (ii); and
                            (ii) ends on the date on which such 
                        educator submits an application under 
                        subsection (c).
            (9) Qualifying income.--
                    (A) In general.--The term ``qualifying income'' 
                means, except as provided in subparagraph (B), an 
                income that does not exceed 120 percent of the area 
                median income in which the eligible dwelling to be 
                purchased is located.
                    (B) High-cost area.--If the Secretary makes a 
                determination that an area described in subparagraph 
                (A) is a high-cost area, the qualifying income shall be 
                an income that does not exceed 180 percent of the 
                median income of such area.
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Educator Down Payment Assistance Act of 2022
To direct the Secretary of Education to award grants to provide financial assistance to certain educators to make down payments on certain homes, and for other purposes.
Educator Down Payment Assistance Act of 2022
Rep. Swalwell, Eric