What does Preamble of American Housing and Economic Mobility Act of 2025 do?

This bill is formally titled 'To make housing more affordable, and for other purposes'.

What does LOCAL HOUSING INNOVATION GRANTS. of American Housing and Economic Mobility Act of 2025 do?

This section establishes a program to award grants to eligible entities for local housing innovation Grants are awarded on a competitive basis to reform local land use restrictions and remove barriers to affordable housing Eligible entities include States, units of general local government, and Indian tribes Funds can be used for activities such as modernizing public school facilities and promoting green building practices Applicants must demonstrate initiatives to expand the supply of well-located affordable housing Laborers and mechanics employed in construction work financed by grants must be paid prevailing wages

What does INVESTING IN AFFORDABLE HOUSING INFRASTRUCTURE. of American Housing and Economic Mobility Act of 2025 do?

This section amends several existing programs to authorize increased funding for affordable housing initiatives. The Housing Trust Fund is authorized $48 billion for fiscal years 2025 through 2034. The Capital Magnet Fund is authorized $3 billion for fiscal years 2025 through 2034. The Public Housing Capital Fund is authorized $70 billion for fiscal year 2025. The Indian Housing Block Grant Program is authorized $2.5 billion for fiscal year 2025, with subsequent years receiving sums as necessary. The Native Hawaiian Housing Block Grant Program is authorized $50 million for fiscal year 2025, with subsequent years receiving sums as necessary. Various rural housing programs are allocated funding for fiscal year 2025, including $420 million for direct loans under section 502, $54 million under section 514, $420 million under section 515, $75 million under section 516, and $75 million under section 523. A Middle Class Housing Emergency Fund is established to provide grants to states experiencing housing shortages and rapid price increases. Grants from the Middle Class Housing Emergency Fund can be used for construction/acquisition of affordable rental housing and measures to prevent tenant displacement. Labor standards, including adherence to the Davis-Bacon Act, are mandated for construction projects funded by the Middle Class Housing Emergency Fund. The Middle Class Housing Emergency Fund is appropriated $4 billion for fiscal year 2025.

What does CONDITIONS FOR THE SALE OF REAL ESTATE-OWNED PROPERTIES AND of American Housing and Economic Mobility Act of 2025 do?

This section aims to preserve owner-occupied homes with mortgages insured by the Federal Housing Administration or purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. The Secretary must develop programs to ensure that at least 75% of single-family residential properties conveyed to the Federal Housing Administration are sold to owner-occupants or community partners. The section restricts the sale or transfer of covered mortgages, allowing it only under certain conditions, such as when the capital level of the Fund is substantially below the required capital ratio. Purchasers of covered mortgages must offer borrowers loss mitigation options that allow for payment reduction at least as great as would be available if the loan had not been sold. The section requires data reporting and semiannual reports to Congress on loans sold in auctions or sales.

What does DOWN PAYMENT ASSISTANCE PROGRAM FOR FIRST-TIME, FIRST- of American Housing and Economic Mobility Act of 2025 do?

This section establishes a Down Payment Assistance Program for First-Time, First-Generation Homebuyers. The program provides grants to eligible residents to assist with purchasing a property for use as a principal residence. Eligible residents must be first-time homebuyers, first-generation homebuyers, and have an income at or below 120% of the area median income, or 140% in high-cost areas. The program includes outreach to financial institutions and counseling for sustainable homeownership. Grants are capped at 3.5% of the appraised property value or the maximum principal obligation limitation. Recipients are not required to obtain an FHA loan to receive assistance. Receipt of other down payment assistance does not affect eligibility. The Secretary will promulgate regulations and establish a database to verify eligibility and manage fund disbursement. Funds are appropriated for fiscal years 2025 through 2034. The program will be included in Home Buying Information Booklets and considered a mortgage product. Borrowers' attestations regarding eligibility are relied upon, and creditors are protected from liability if acting in good faith. Recipients must occupy the property as a principal residence for at least 5 years, or repay a proportional amount of the grant.

What does FORMULA GRANT PROGRAM FOR COMMUNITIES WITH AN APPRAISAL GAP. of American Housing and Economic Mobility Act of 2025 do?

This section establishes a formula grant program for communities with an appraisal gap. The program provides funding to States to support neighborhoods with an appraisal gap. Funding can be used for measures such as paying down arrears on loans and paying for home repairs. The program also includes purchasing or rehabilitating vacant or distressed properties. The Secretary distributes amounts based on the number of borrowers with negative equity and appraisal gaps in each State.

What does STRENGTHENING THE COMMUNITY REINVESTMENT ACT OF 1977. of American Housing and Economic Mobility Act of 2025 do?

This section amends the Community Reinvestment Act of 1977 to strengthen its provisions. The amendments include changes to the findings and purpose of the Act, as well as definitions of key terms. The section also requires the appropriate Federal financial supervisory agencies to conduct studies on disparities in access to credit and community development financing. The agencies must use data from various sources, including the Home Mortgage Disclosure Act and the Equal Credit Opportunity Act. The section also amends the Bank Holding Company Act of 1956 to require notice and opportunity for comment before a financial holding company acquires control of another company.

What does AMENDMENTS RELATING TO CREDIT UNION SERVICE TO UNDERSERVED of American Housing and Economic Mobility Act of 2025 do?

This section amends the Federal Credit Union Act to relate to credit union service in underserved areas. It defines 'underserved area' as a local community, neighborhood, or rural district that is an investment area and is underserved based on data from banking agencies. The definition of 'underserved area' includes areas where a credit union has received approval to provide service before the enactment of this paragraph and has established a service facility. The Board is required to monitor Federal credit unions' adherence to significant unmet needs plans. The Board may approve an application allowing a Federal credit union to include members residing or doing business in an underserved area, provided certain conditions are met, including capitalization and establishing ongoing services. Approval can be terminated if the credit union fails to meet requirements or does not meet the terms of its significant unmet needs plan. Federal credit unions with approved applications must report data to the Administration regarding members, offices, and compliance with unmet needs plans. The Administration must publish an annual report containing information on approved applications, underserved areas, and member data. Federal credit unions seeking a field of membership in a community must submit a business plan, including a marketing plan addressing the unique needs of demographic groups, particularly underserved groups. The Administration must seek public comment and conduct a public hearing for applications in areas with a population of at least 2,500,000.

What does RAISING PUBLIC WELFARE CAPS. of American Housing and Economic Mobility Act of 2025 do?

This section amends sections of the Revised Statutes and the Federal Reserve Act to modify investment regulations for national banks and state member banks. The amendments allow banks to make investments that promote the public welfare, specifically benefiting low- and moderate-income communities or families through housing, services, or jobs. Banks are prohibited from making investments that expose them to unlimited liability. Aggregate investment limits are established based on a bank's capital stock and unimpaired surplus fund, with varying percentages depending on whether the bank is considered 'well capitalized'. The Comptroller of the Currency or the Board of Governors may determine, by order, that a higher investment amount poses no significant risk to the deposit insurance fund. For well-capitalized banks, aggregate investments may reach up to 25% of capital stock and surplus, subject to Comptroller/Board approval. State member banks' investment limits are also tied to their capital and surplus, and further consider their Community Reinvestment Act examination rating.

What does TEMPORARY ELIGIBILITY OF CERTAIN DIRECT DESCENDANTS OF of American Housing and Economic Mobility Act of 2025 do?

This section temporarily extends housing loan eligibility to certain direct descendants of veterans. Eligible descendants must be first-time and first-generation homebuyers living on the date of the American Housing and Economic Mobility Act of 2025 enactment. The eligibility period starts one year after the Act's enactment and ends ten years after the Secretary of Veterans Affairs prescribes regulations.

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American Housing and Economic Mobility Act of 2025

Last updated: 3/11/2025 · Introduced: 3/11/2025

Author: Elizabeth Warren (D-MA)

TL;DR (AI)

The American Housing and Economic Mobility Act of 2025 establishes a program to award grants to eligible entities for local housing innovation and removes barriers to affordable housing.
The Act authorizes increased funding for affordable housing initiatives, including $48 billion for the Housing Trust Fund and $70 billion for the Public Housing Capital Fund.
It creates a Down Payment Assistance Program for First-Time, First-Generation Homebuyers, providing grants to eligible residents to assist with purchasing a property for use as a principal residence.
The Act expands protections against discrimination under the Fair Housing Act, including clarifying and confirming protections for covered characteristics such as gender identity, marital status, and veteran status.
It also establishes a surcharge on high-income estates and trusts, with a surcharge calculated as 5% of modified adjusted gross income exceeding $200,000, plus 3% of income exceeding $500,000.

119th Congressin committeeHR. 2038(In Committee)Official page

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