HOUSING: Creates the Louisiana First-Generation Homebuyer Assistance Act

HLS 26RS-1290 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 794
BY REPRESENTATIVE JORDAN
HOUSING: Creates the Louisiana First-Generation Homebuyer Assistance Act
1 AN ACT
2 To enact Part I of Chapter 3-G of Title 40 of the Louisiana Revised Statutes of 1950, to be
3 comprised of R.S. 40:600.121 through 600.128, relative to the Louisiana First-
4 Generation Homebuyer Assistance Program; to provide for purpose; to provide for
5 definitions; to provide for the Louisiana First-Generation Homebuyer Assistance
6 Program; to provide for eligibility requirements; to provide for assistance terms; to
7 provide for participating lenders; to provide for outreach; to provide for annual
8 reporting; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. Part I of Chapter 3-G of Title 40 of the Louisiana Revised Statutes of
11 1950, comprised of R.S. 40:600.121 through 600.128, is hereby enacted to read as follows:
12 PART I. THE LOUISIANA FIRST-GENERATION HOMEBUYER ASSISTANCE
13 ACT
14 §600.121. Short title; purpose
15 A. This Part shall be known and may be cited as the "Louisiana
16 First-Generation Homebuyer Assistance Act."
17 B. The purpose of this Part is to expand homeownership in communities
18 historically excluded from wealth-building through homeownership by providing
19 down payment and closing cost assistance to first-generation homebuyers.
20 §600.122. Definitions
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HB NO. 794
1 For the purposes of this Part, the following terms have the following
2 meanings:
3 (1) "Area median income" or "AMI" means the median household income
4 for the applicable metropolitan statistical area or rural area as determined annually
5 by the U.S. Department of Housing and Urban Development.
6 (2) "Corporation" means the Louisiana Housing Corporation.
7 (3) "First-generation homebuyer" means an individual who is one of the
8 following:
9 (a) Has not owned a primary residence at any time during the three years
10 preceding the date of application and whose parents or legal guardians did not own
11 a primary residence during the applicant's childhood, prior to age eighteen, as
12 documented by the applicant.
13 (b) Grew up in the foster care system or without permanent housing during
14 childhood, regardless of parental homeownership status.
15 (4) "Program" means the Louisiana First-Generation Homebuyer Assistance
16 Program.
17 (5) "Qualified mortgage" means a mortgage loan made by a participating
18 lender that meets the corporation's underwriting guidelines, does not involve a
19 balloon payment in the first ten years, and bears an interest rate no more than two
20 percentage points above the average prime offer rate for comparable transactions.
21 (6) "Targeted census tract" means a census tract identified by the corporation
22 as having a homeownership rate at least twenty percentage points below the
23 statewide average homeownership rate, based on the most recent American
24 Community Survey data.
25 §600.123. Program establishment; funding
26 A. There is hereby established the Louisiana First-Generation Homebuyer
27 Assistance Program, to be administered by the corporation.
28 B. The program shall be funded by:
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HLS 26RS-1290 ORIGINAL
HB NO. 794
1 (1) An initial appropriation of fifteen million dollars from the Louisiana
2 Capital Outlay Fund.
3 (2) Repayments of assistance upon sale, refinance, or transfer of the assisted
4 property.
5 (3) Federal HOME Investment Partnerships Program funds and Community
6 Development Block Grant funds allocated for homeownership assistance.
7 (4) Private contributions and foundation grants.
8 §600.124. Eligibility requirements
9 A. To qualify for assistance under this program, an applicant shall do all of
10 the following:
11 (1) Meet the definition of first-generation homebuyer pursuant to R.S.
12 40:600.122(3).
13 (2) Have a household income that does not exceed one hundred twenty
14 percent of the applicable AMI, provided that at least fifty percent of annual program
15 funds are reserved for applicants at or below eighty percent of AMI.
16 (3) Demonstrate the ability to obtain and repay a qualified mortgage for the
17 purchase of a primary residence in this state.
18 (4) Complete a HUD-approved homebuyer education course of not fewer
19 than eight hours prior to closing.
20 (5) Agree to occupy the purchased home as their primary residence for a
21 period of at least five years.
22 (6) Not own any other real property at the time of closing.
23 B. Priority shall be given to applicants purchasing homes in targeted census
24 tracts as defined in R.S. 40:600.122(5).
25 §600.125. Assistance terms; recapture provisions
26 A. Assistance under this program shall be provided in the form of a soft
27 second mortgage as follows:
28 (1) Maximum assistance: Twenty-five thousand dollars per qualified buyer
29 or the actual down payment and closing costs, whichever is less.
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1 (2) The assistance shall be structured as a deferred, forgivable loan with a
2 zero percent interest rate.
3 (3) The loan shall be forgiven in full if the recipient occupies the property
4 as their primary residence for the full five-year period.
5 (4) If the recipient sells, refinances, or transfers the property before the end
6 of the five-year occupancy period, the assistance shall be repaid to the program on
7 a pro-rated basis: one-fifth of the outstanding balance forgiven for each complete
8 year of occupancy.
9 B. The assistance outlined in this Section may be used for any of the
10 following:
11 (1) A down payment on the purchase of a primary residence.
12 (2) Mortgage loan closing costs.
13 (3) Pre-paid homeowner's insurance and property taxes at closing.
14 (4) Costs of required home inspections.
15 §600.126. Participating lenders
16 The corporation shall certify participating lenders and shall require them to
17 do all of the following:
18 (1) Commit to offering qualified mortgage products to program applicants.
19 (2) Ensure loan officers who work with program applicants complete fair
20 lending and implicit bias training annually.
21 (3) Submit quarterly data on applications, approvals, and denials by
22 applicant race, income, and census tract.
23 (4) Maintain a commitment to community outreach in targeted census tracts.
24 §600.127. Marketing and outreach
25 A. The corporation shall implement a proactive outreach campaign
26 specifically targeting communities with historically low homeownership rates,
27 including African American, Hispanic, and rural communities.
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1 B. Outreach shall include partnerships with churches, community
2 organizations, Historically Black Colleges and Universities, employers, and social
3 service agencies.
4 C. All program materials shall be available in English and Spanish at a
5 minimum.
6 §600.128. Annual reporting
7 The corporation shall publish an annual report detailing the number of
8 applicants, awards, denials, and completed closings; the geographic and demographic
9 breakdown of recipients; the total amount disbursed and recaptured; and the impact
10 on homeownership rates in targeted census tracts over time.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 794 Original 2026 Regular Session Jordan
Abstract: Provides relative to the Louisiana First-Generation Homebuyer Assistance Act..
Proposed law provides for the "Louisiana First-Generation Homebuyer Assistance Act."
Proposed law provides for purpose.
Proposed law defines "area median income" or "AMI", "corporation", "first-generation
homebuyer", "qualified mortgage", and "targeted census tract".
Proposed law provides for the establishment of the Louisiana First-Generation Homebuyer
Assistance Program, to be administered by the corporation.
Proposed law provides for how the program shall be funded.
Proposed law provides that to qualify for assistance under this program, an applicant shall
do all of the following:
(1) Meet the definition of first-generation homebuyer pursuant to present law.
(2) Have a household income that does not exceed 120% of the applicable AMI,
provided that at least 50% of annual program funds are reserved for applicants at or
below 80% of AMI.
(3) Demonstrate the ability to obtain and repay a qualified mortgage for the purchase of
a primary residence in this state.
(4) Complete a HUD-approved homebuyer education course of not fewer than eight
hours prior to closing.
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HLS 26RS-1290 ORIGINAL
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(5) Agree to occupy the purchased home as their primary residence for a period of at
least five years.
(6) Not own any other real property at the time of closing.
Proposed law provides for priority.
Proposed law provides that assistance under this program shall be provided in the form of
a soft second mortgage as follows:
(1) Maximum assistance: $25 thousand per qualified buyer or the actual down payment
and closing costs, whichever is less.
(2) The assistance shall be structured as a deferred, forgivable loan with a zero percent
interest rate.
(3) The loan shall be forgiven in full if the recipient occupies the property as their
primary residence for the full five-year period.
(4) If the recipient sells, refinances, or transfers the property before the end of the
five-year occupancy period, the assistance shall be repaid to the program on a
pro-rated basis: one-fifth of the outstanding balance forgiven for each complete year
of occupancy.
Proposed law provides for what the assistance outlined in proposed law may be used for.
Proposed law provides that the corporation shall certify participating lenders and shall
require them to do all of the following:
(1) Commit to offering qualified mortgage products to program applicants.
(2) Ensure loan officers who work with program applicants complete fair lending and
implicit bias training annually.
(3) Submit quarterly data on applications, approvals, and denials by applicant race,
income, and census tract.
(4) Maintain a commitment to community outreach in targeted census tracts.
Proposed law provides that the corporation shall implement a proactive outreach campaign
specifically targeting communities with historically low homeownership rates, including
African American, Hispanic, and rural communities.
Proposed law provides that the corporation shall publish an annual report detailing the
number of applicants, awards, denials, and completed closings; the geographic and
demographic breakdown of recipients; the total amount disbursed and recaptured; and the
impact on homeownership rates in targeted census tracts over time.
(Adds R.S. 40:600.121-600.128)
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