Homeownership Promise Act

(a) Establishment. The Secretary shall establish a matching downpayment grant, to be known as a Homeownership Promise Account, that is accessible to eligible families for downpayment expenses at the closing settlement of an eligible home.

(b) Account requirements

(1) In general. An eligible family may open a Homeownership Promise Account at any participating community development financial institution.

(2) Interest accrued. A community development financial institution that makes Homeownership Promise Accounts available to eligible families shall pay an interest rate comparable to the rate offered to unrestricted savings accounts at the institution.

(3) Balance. The balance of a Homeownership Promise Account—

(A) prior to the closing of an eligible home, shall only contain the personal contributions made by an eligible family; and

(B) may not exceed $60,000 (excluding interest), of which—

(i) not more than $10,000 (excluding interest) may consist of—

(I) personal contributions made by an eligible family, which are not required to be made on a consecutive, yearly basis;

(II) contributions made by the employer of a member of an eligible family on behalf of that member; and

(III) contributions made by a nonprofit organization on behalf of a member of an eligible family; and

(ii) not more than $50,000 may consist of matching contributions made by the Secretary under paragraph (4).

(4) Matching requirement. For every $1 made in personal contributions by an eligible family under paragraph (3)(B)(i)(I), the Secretary shall make a matching grant of $5, for a total contribution by the Secretary of not more than $50,000.

(5) Emergency withdrawal. An eligible family may make an emergency withdrawal of personal contributions made under paragraph (3)(B)(i)(I) for any reason, including expenses unrelated to the closing of an eligible home, in any amount.

(6) Settlement. At the closing for the purchase of an eligible home, not more than 2 eligible families with Homeownership Promise Accounts may contribute amounts to the closing from the accounts.

(c) Authorization of appropriations. There are authorized to be appropriated to the Secretary such sums as may be necessary to carry out this section.