H.R. 2064: Home of Your Own Act of 2025

This bill, titled the "Home of Your Own Act of 2025," is designed to help individuals achieve homeownership by providing financial assistance through grants administered by the Secretary of Housing and Urban Development (HUD). Below are the key elements of the bill:

Establishment of the Grant Program

The Secretary of HUD is required to establish a homeownership assistance grant program within one year after the bill is enacted. This program will allocate funds to states and Indian tribes to assist eligible individuals in purchasing homes.

Allocation of Funds

• Indigenous Assistance: 3% of the funds appropriated each year must be reserved for grants specifically allocated to Indian tribes.
• State Allocation: The remaining funds will be distributed among participating states based on a formula established by the Secretary.

Use of Funds

The funds distributed to states and Indian tribes must be utilized to assist eligible individuals with:

• Acquisition Costs: This includes financial help for down payments, closing costs, and costs aimed at reducing mortgage interest rates.
• Repairs and Modifications: Financial support for necessary repairs or modifications to make the home suitable for occupancy, especially for individuals with disabilities.

Each eligible person can receive financial assistance once, with a maximum amount of $30,000.

Layering of Assistance

The bill allows states and tribes to provide assistance to individuals who may also be receiving other forms of support for home acquisition.

Repayment of Funds

If a person who receives assistance does not occupy the home as their primary residence for at least five years, they may have to repay the assistance proportionally based on the number of months they did not occupy the home. Certain exceptions apply, such as job relocations or financial hardships.

Tax Exemption

Assistance provided under this program will not be considered taxable income, thus exempting it from federal taxation.

Financial Counseling Requirement

Before receiving assistance, eligible individuals must complete a financial counseling program to better understand the responsibilities of homeownership. These programs must be approved by the Secretary or the respective state or tribe.

Administration of Grants

• States: Each state receiving funds must submit an annual plan for how they will implement the program. At least 25% of the allocated funds must be distributed through community development financial institutions.
• Indian Tribes: Similar requirements apply, including submission of an annual plan and potential distribution through community development financial institutions.

Authorization of Appropriations

The bill authorizes $6.7 billion annually from 2026 to 2030 to fund the assistance program. Administrative costs for states and tribes using these funds are capped at 7% and 10%, respectively.

Definitions

Several terms are defined in the bill, including "eligible home," which refers to residential properties that meet specific criteria, and "eligible person," defined as a first-time homebuyer whose household income does not exceed a set percentage of the local median income.

Relevant Companies

• KB Home (KBH): This homebuilder may benefit from increased demand as more individuals are assisted in home purchases.
• D.R. Horton (DHI): As a major home construction company, D.R. Horton might see an uptick in sales as more homebuyers enter the market with this assistance.
• NVR, Inc. (NVR): Similar to KB Home, NVR could experience boosted sales from the increased number of homebuyers receiving financial assistance.