S. 4261Senate118th Congress (2023-2025)In Committee

Educator Down Payment Assistance Act of 2024

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Updated January 20, 2026 at 4:21 PM UTC

The Educator Down Payment Assistance Act of 2024 directs the Department of Housing and Urban Development to award competitive grants to local governments, state housing finance agencies, or local educational agencies so they can give eligible public school teachers and staff up to $25,000 (more in high‑cost areas) toward down‑payment, closing, and interest‑reduction costs on a first‑time home purchase. To qualify, educators must have at least three years of service, meet income limits, be first‑time homebuyers, and be in good standing. Recipients must live in the home as a primary residence for three years and stay in their education role for three years, with exceptions for emergencies or military spouses. The program is funded at $30 million per year from 2025 through 2030 and requires annual reporting to Congress.

Key Provisions

Defines “eligible educator” as public elementary/secondary teachers, principals, paraprofessionals, school leaders or other staff who are first‑time homebuyers, have at least three years of service, meet income limits, and are in good standing.
Grants are awarded competitively to eligible entities (local governments, state housing finance agencies, or local educational agencies) to fund down‑payment assistance for eligible educators.
Assistance may cover down‑payment, closing costs, and interest‑rate reduction costs, up to $25,000 per educator, with higher limits in designated high‑cost areas.
Educators may receive assistance only once and must occupy the purchased dwelling as their primary residence for at least three years; failure to do so requires repayment unless an emergency event occurs.
Recipients must remain in their education role for three years after receiving assistance, except military spouses are exempt from this service requirement.
The program may be combined with other public or private funding sources; multiple sources do not affect eligibility.
Appropriations of $30 million are authorized for each fiscal year 2025‑2030, and HUD must submit an annual report to Congress detailing assistance amounts, demographics, mean income, and purchase price.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

May 2, 2024

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SenateIntro Referral

Introduced in Senate

May 2, 2024

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

May 2, 2024

Floor Debate

2 members

What members said about S. 4261 on the floor

1 Republican1 Democrat

Sen. John ThuneR-SD · May 23, 2024

The following Senators are necessarily absent: the Senator from Tennessee (Mr. Hagerty), the Senator from Oklahoma (Mr. Mullin), the Senator from Nebraska (Mr. Ricketts), and the Senator from South…

Sen. Richard J. DurbinD-IL · May 23, 2024

I announce that the Senator from West Virginia (Mr. Manchin), the Senator from New Jersey (Mr. Menendez), and the Senator from Massachusetts (Ms. Warren) are necessarily absent.

Bill Text

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Introduced in SenateIssued May 2, 2024

118th CONGRESS

2d Session

S. 4261

IN THE SENATE OF THE UNITED STATES

May 2, 2024

Mr. Heinrich introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To direct the Secretary of Housing and Urban Development to award grants to provide financial assistance to certain educators to make down payments on certain homes, and for other purposes.

Short title

This Act may be cited as the Educator Down Payment Assistance Act of 2024.

Definitions

In this Act:

(1)

Eligible dwelling

The term eligible dwelling means a residential property with—

(A)

not more than 4 dwelling units;

(B)

an apartment;

(C)

a condominium; or

(D)

a manufactured dwelling unit.

(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 fewer 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 made, insured, or guaranteed under title VIII of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4221 et seq.);

(D)

is a qualified mortgage, as defined in section 129C(b)(2) of the Truth in Lending Act (15 U.S.C. 1639c(b)(2)); 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 the 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

The term good standing means that, with respect to an eligible educator and during the 3-year period beginning on the date on which the educator submits an application under section 3(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.

(9)

Qualifying income

The term qualifying income means—

(A)

an income that is not greater than 120 percent of the area median income in which the eligible dwelling to be purchased is located; and

(B)

if the Secretary determines that the area described in subparagraph (A) is a high-cost area, an income that is not greater than 180 percent of the median income of such area.

(10)

Secretary

The term Secretary means the Secretary of Housing and Urban Development.

First-time homebuyer down payment assistance program

(a)

Establishment

The Secretary of Housing and Urban Development shall award grants, on a competitive basis, to eligible entities to provide financial assistance 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 use an existing, or establish a new, down payment assistance program to provide financial assistance 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)

Use of amounts To provide financial assistance

(1)

In general

An eligible entity that receives a grant under subsection (a) shall use such grant funds to provide financial assistance to eligible educators.

(2)

Application

An eligible educator seeking a financial assistance 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)

Use of financial assistance

An eligible educator who receives financial assistance under this subsection shall use such financial assistance 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)

Amount of financial assistance

(A)

In general

Except as provided under subparagraph (B), the amount of financial assistance awarded to an eligible educator under this subsection may not be greater than $25,000.

(B)

Exception

In the case of an eligible educator purchasing an eligible dwelling that is located in an area described in section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), the amount of financial assistance awarded to an eligible educator under this subsection may be greater than $25,000.

(5)

Limitation

An eligible educator may only receive financial assistance under this subsection 1 time.

(6)

Additional funds

An eligible entity may award financial assistance 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 financial assistance under this subsection shall use the eligible dwelling purchased using such financial assistance as a primary residence for a period of not fewer than 3 years beginning on the date on which the eligible educator receives financial assistance under this subsection.

(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 financial assistance 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 financial assistance under clause (i).

(8)

Service requirement

(A)

In general

An eligible educator who is awarded financial assistance under this subsection shall be required by the Secretary to continue in their role as a public elementary or secondary school teacher, principal, paraprofessional, school leader, or other staff for not less than 3 years after the date on which the eligible educator is awarded financial assistance.

(B)

Exception

Subparagraph (A) shall not apply if an eligible educator is a military spouse, as defined in section 45AA(d)(1) of the Internal Revenue Code of 1986.

(e)

Reporting requirements

The Secretary shall submit to Congress an annual report that includes include a breakdown of financial assistance provided under this section, by demographic breakdown, mean income, and mean purchase price.

(f)

Authorization of appropriations

There are authorized to be appropriated to carry out this section $30,000,000 for each of fiscal years 2025 through 2030.