Public Service Homeownership Assistance Act

The Public Service Homeownership Assistance Act would authorize the Department of Housing and Urban Development to provide downpayment assistance loans to federal, state, tribal, and local government employees starting in 2027. These loans, which range from $10,000 to $20,000, are strictly limited to covering downpayments or closing costs for the purchase of a residential property with one to four units. Recipients must occupy the home within 60 days and continue to live there at least half the year to maintain eligibility. Repayment of the loan is not required immediately but begins upon the sale of the home, a cash-out refinance, or if the employee stops occupying the property for more than six months in a given year.