Investments in housing supply and homeownership

(a) Definitions In this section: (1) Heir property The term heir property means residential property for which title passed by operation of law through intestacy and is held by 2 or more heirs as tenants in common. (2) Qualified homebuyer The term qualified homebuyer means a homebuyer that meets all of the following requirements: (A) Income The household of the homebuyer has an income that does not exceed— (i) 120 percent of median income for the area (as determined by the Secretary of Housing and Urban Development) within which— (I) the home to be acquired using assistance under this section is located; or (II) the place of residence of the homebuyer is located; or (ii) in the case of a homebuyer acquiring a home that is located in a high-cost area, as determined by the Secretary of Housing and Urban Development, 140 percent of the median income for the area within which the home to be acquired using assistance under this section is located. (B) First-time homebuyer The homebuyer, as self-attested by the homebuyer, is a first-time homebuyer, as defined in section 104 of the Cranston Gonzalez National Affordable Housing Act (42 U.S.C. 12704), except that— (i) for the purposes of this section, the reference in such section 104 to title II shall be considered to refer to this section; and (ii) ownership of heir property shall not be treated as owning a home for purposes of determining whether a borrower qualifies as a first-time homebuyer. (C) First-generation homebuyer The homebuyer, as self-attested by the homebuyer, is— (i) an individual— (I) whose parents or legal guardians do not, or did not at the time of their death, to the best of the individual’s knowledge, have any present ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel; and (II) whose spouse or domestic partner has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, had any present ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether the individual is a co-borrower on the loan or not; or (ii) an individual who has at any time been placed in foster care or institutional care whose spouse or domestic partner has not, during the 3-year period ending upon acquisition of the home to be acquired using assistance under this section, had any ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether such individuals are co-borrowers on the loan or not. (b) Transfers For fiscal year 2026 and each fiscal year thereafter, there are hereby appropriated amounts equal to the following percentages of savings (as estimated by the Secretary of the Treasury) resulting from the limits on deductions established under sections 163(n) and 167(i) of the Internal Revenue Code of 1986, as added by this Act: (1) 80 percent of such amounts to the Secretary of Housing and Urban Development to provide additional funding for the HOME Investment Partnerships program under subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12741 et seq.), to be allocated in accordance with the formula under that program, except that such amounts shall not be subject to the requirements under section 231 of such Act (42 U.S.C. 12771), for the following purposes: (A) Acquisition of affordable housing, and associated rehabilitation or preservation of such acquired housing. (B) 60 percent of the 80 percent under this paragraph to be used for new construction of affordable housing, with at least half of such funds to be used for new construction of affordable housing for the benefit of extremely low-income households. (2) 20 percent of such amounts to the Secretary of Housing and Urban Development to establish a fund to provide grants of assistance on behalf of qualified homebuyers, the amount of which shall not exceed the greater of $20,000 or 10 percent of the purchase price for each qualified homebuyer, for down payments, closing costs, and interest rate buydowns associated with acquiring owner-occupied primary residences.