Use of tax revenues for down payment assistance grants

(a) Establishment of housing downpayment trust fund (1) In general Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 9512. Housing Downpayment Trust Fund (a) Creation of trust fund There is established in the Treasury of the United States a trust fund to be known as the Housing Downpayment Trust Fund (hereinafter in this section referred to as the Trust Fund), consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section and section 9602(b). (b) Transfers to Trust Fund There are hereby appropriated to the Trust Fund amounts equivalent to revenues received in the Treasury from the tax imposed by sections 5000E and 5000F. (c) Expenditures from Trust Fund Amounts in the Trust Fund shall be available, as provided in appropriations Acts, only for grants under section 3(b) of the Protecting American Homes from Hedge Funds Act.. (2) Clerical amendment The table of sections for subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 9512. Housing Downpayment Trust Fund.. (b) Grants program for down payment assistance programs (1) Establishment The Secretary of Housing and Urban Development shall establish a program under which the Secretary makes grants to State housing finance agencies to establish new or supplement existing programs that provide down payment assistance, closing costs, and interest rate buydowns, to individuals and families whose incomes do not exceed 120 percent of area median income, in connection with the purchase of a single-family home (including condominiums, homes through community land trusts, and shared-equity home ownership) within the State. (2) Priority A State housing finance agency that receives a grant under this section shall give priority to individuals and families seeking assistance to purchase any single-family residence that is sold or transferred by an applicable taxpayer (as defined in section 5000G of the Internal Revenue Code of 1986, as added by section 2).