House Bill No. [insert number] proposes the establishment of the Louisiana First-Generation Homebuyer Assistance Act, aimed at expanding homeownership opportunities for individuals historically excluded from wealth-building through homeownership. The Act defines key terms such as "first-generation homebuyer," "area median income," and "qualified mortgage," and outlines the Louisiana First-Generation Homebuyer Assistance Program, which will be administered by the Louisiana Housing Corporation. The program will be funded through an initial appropriation of $15 million, repayments from assistance, and federal and private contributions.

To qualify for assistance, applicants must meet specific criteria, including being a first-generation homebuyer, having a household income not exceeding 120% of the applicable area median income, and completing a HUD-approved homebuyer education course. The assistance will be provided as a soft second mortgage, with a maximum of $25,000 or the actual down payment and closing costs, whichever is less. The loan will be forgivable if the recipient occupies the home as their primary residence for five years. The bill also mandates outreach efforts targeting communities with low homeownership rates and requires participating lenders to adhere to fair lending practices and report demographic data on applicants. An annual report will be published to track the program's impact on homeownership rates.