This bill proposes the creation of tax-advantaged Homeowner Savings Accounts (HSAs) , designed to assist eligible individuals in saving for the purchase or improvement of their first principal residence. Contributions made to an HSA would be tax-deductible , providing a significant incentive for individuals to save towards homeownership goals. The accounts are structured as trusts or custodial accounts, managed by approved financial institutions. To qualify as an eligible individual , a person and their spouse must not have held a present ownership interest in a principal residence during the three-year period prior to opening the account or making a qualified purchase. Annual contributions are capped, aligning with IRA contribution limits, and the total account balance cannot exceed 20% of the national average single-family home price, as determined and published by the Treasury Department. Funds withdrawn from an HSA are tax-free if used for qualified homeowner expenses , which encompass purchasing or constructing a principal residence or making specific improvements to such a residence. However, distributions not used for these qualified purposes are generally included in gross income and incur a 10% penalty. Exceptions to this penalty, known as "exempted distributions," include withdrawals due to emergencies like job loss or major health events, or life events such as marriage leading to home ownership, the death of the beneficiary, or residing outside the United States.