Public Service Homeownership Assistance Act

The Public Service Homeownership Assistance Act establishes a program through the Department of Housing and Urban Development to offer financial assistance to public employees. Beginning January 1, 2027, and subject to appropriations, the Secretary may issue loans to individuals employed by federal, state, tribal, or local governments to help them purchase a home. These loans, which must be between $10,000 and $20,000 , are specifically for covering down payments or closing costs on eligible residential properties. The loan creates a subordinate lien on the property, and recipients are required to occupy the home within 60 days of issuance and for at least 182 days annually. Repayment of the 10-year amortized loan is triggered by certain events, including the sale or transfer of the property, failure to meet the annual occupancy requirement, or a cash-out refinance. This program aims to support homeownership among public service workers by providing targeted financial aid for initial home purchase expenses.