SECTION 1 (TITLE):
This act shall be known as the First-Time Home Buyers Act.
SECTION 2 (PURPOSE):
To establish a revolving loan fund to assist first time buyers in financing a home purchase
SECTION 3 (PROVISIONS):
(a) The STATE Department of Housing [or comparable state entity] shall administer a home buyer assistance program that:
- (i) assists home buyers to receive low-interest mortgage loans, with down payment and closing cost assistance options, for the purchase of homes; and
- (ii) coordinates with, and matches where appropriate, similar programs offered by private employers and county and municipal governments so as to maximize the total amount that home buyers can receive under the program; and
- (iii) establishes a revolving loan fund that shall consist of funds appropriated by the Legislature, money received from the repayment of loans made from the program, and interest earned.
(b) Loan use and requirements
- (i) With reference to loans under this program, the DEPARTMENT shall:
- (1) allow home buyers to utilize the loans for the purchase of newly constructed or existing homes, including homes held in cooperative or condominium forms of ownership;
- (2) require that borrowers under this program do not own other residential real estate at the time of the issuance of the loan;
- (3) require a home purchased under this program to be occupied by the home buyer as a principal residence.
(c) Capitalization of revolving loan funds
- (i) Any proceeds or repayments from loans made under this paragraph shall be returned to the revolving loan fund established under this paragraph to be used for purposes related to this section.
- (i) The DEPARTMENT shall adopt regulations to implement the program established under this section.