Washington, D.C. – Today, U.S. Senator Laphonza Butler (D-Calif.) joined U.S. Senator Reverend Raphael Warnock (D-Ga.) in reintroducing the Downpayment Toward Equity Act to provide down payment assistance to first-generation homebuyers and help make it possible for every American to achieve the dream of homeownership.
“The rise in housing costs has shut out many of California’s prospective first-time homebuyers,” said Senator Butler. “The Downpayment Toward Equity Act would make homeownership attainable for more families, creating a tangible pathway to social mobility and building wealth.”
“I’ve seen firsthand how difficult it can be for hardworking people to afford a home—in fact, I’ve lived it. My parents were no strangers to hard work: My dad would fix broken cars throughout the week and fix broken people on Sunday as a preacher. Despite the fact that my parents worked hard every day since they were teenagers, they weren’t able to buy a home and build generational wealth until much later in their lives,” said Senator Reverend Warnock. “That’s why I’m reintroducing the Downpayment Toward Equity Act, which provides federal grants to aid first-generation homebuyers with down payment and closing costs. This legislation will help address the widening homeownership gap and provide all Georgians the opportunity to build generational wealth. Let’s get this done.”
The legislation would provide federal grants, administered through local entities, to aid first-generation homebuyers with qualifying expenses toward purchasing their first home—including down payment costs, closing costs, and costs to reduce the rates of interest. The legislation addresses growing concerns regarding rising home prices, lack of access to home-buying assistance, and the widening wealth and homeownership gaps throughout the country. Following the reintroduction of this legislation, the Biden Administration announced a new tax credit that would provide $10,000 to first-time home buyer.
The bill is also co-sponsored by Alex Padilla (D-CA.), Van Hollen (D-MD), and Sherrod Brown (D-OH.) and is endorsed by the National Coalition for the Homeless and the National Consumer Law Center (on behalf of its low-income clients).
Read the full bill text here.
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