U.S. Sen. Reverend Raphael Warnock (D-Ga.) and Sen. Laphonza Butler (D-Calif.) reintroduced the Downpayment Toward Equity Act to provide downpayment assistance to first-generation homebuyers and help make it possible for every American to achieve the dream of homeownership. The legislation would provide federal grants, administered through local entities, to aid first-generation homebuyers with qualifying expenses toward purchasing their first home – including downpayment costs, closing costs, and costs to reduce the rates of interest. The legislation addresses growing concerns regarding rising home prices, lack of access to homebuying assistance, and the widening wealth and homeownership gaps throughout the country.
“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,” Warnock said. “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 rise in housing costs has shut out many of California’s prospective first-time homebuyers,” Butler said. “The Downpayment Toward Equity Act would make homeownership attainable for more families, creating a tangible pathway to social mobility and building wealth.”
The announcement noted that since joining the Senate, Warnock has been working tirelessly to address Georgia’s affordable housing crisis. Warnock voted for the Fiscal Year 2024 government funding bill, which increases America’s housing supply and affordability, and addresses the homelessness crisis by
- Increasing the supply of affordable housing nationwide with funding to build 10,000 new rental and homebuyer units.
- Extending funding for the “Yes In My Back Yard” grant program to support efforts to increase the nation’s housing supply and lower housing costs through state and local zoning changes.
- Delivering $275 million in new funding for homeless assistance grants to help address homelessness in communities across the country and provide new resources to better connect people experiencing homelessness with health care services.
In the past year, Warnock has secured nearly $80 million in housing investments to provide affordable housing options for Georgians at all income levels and repair hazardous housing conditions in low-income housing units.
The bill is co-sponsored by Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and Sen. Chris Van Hollen (D-Md.) and is endorsed by the National Coalition for the Homeless and the National Consumer Law Center (on behalf of its low-income clients).