Bill Overview
Title: Educator Down Payment Assistance Act of 2022
Description: This bill requires the Department of Education to award grants for assisting certain elementary and secondary school educators with the purchase of a first home (e.g., by providing direct down payment costs). Entities eligible for the grants include local governments, state housing finance agencies, and local educational agencies.
Sponsors: Rep. Swalwell, Eric [D-CA-15]
Target Audience
Population: Educators purchasing their first home
Estimated Size: 1800000
- The legislation is focused on assisting educators in purchasing their first homes.
- There are millions of educators across the United States and globally, working in various elementary and secondary schools.
- Specifically, the legislation targets those who are looking to buy their first home, a subset of all educators.
- The assistance will be implemented through grants awarded to local governments, state housing finance agencies, and local educational agencies.
- The assistance will be limited to educators who do not yet own a home and wish to become homeowners.
Reasoning
- Most interviews should involve active educators who are potentially first-time homebuyers.
- It should include a range of educators in different regions to understand geographic differences in housing markets.
- We should include examples of educators in different life stages, including single individuals, married couples both working in education, etc.
- Since not all educators will be eligible, we should have some interviews where individuals are out of the target scope, either because they own a home or don't plan to buy one.
- Given the scale, not only direct beneficiaries but also indirect beneficiaries (such as local housing markets) might reflect impacts in a minor way.
Simulated Interviews
Elementary school teacher (Austin, TX)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- Buying a home has seemed out of reach due to high down payment costs.
- The policy would definitely make it more feasible for me to consider buying a home.
- Excited about the possibility of settling down in my own space.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
High school teacher (Chicago, IL)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- This policy would not affect me as I already own a home.
- I think it's a great initiative, especially for younger colleagues struggling with housing costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Middle school teacher (Portland, OR)
Age: 28 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- We want to buy a home but saving for a down payment has been a huge barrier.
- This policy would be immensely helpful.
- Relieved at the prospect of having our own home before starting a family.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
High school teacher (Rural Nevada)
Age: 39 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Own homeownership wasn't something in my immediate plans due to housing scarcity where I work.
- The policy might make a difference, but it's more about availability than affordability here.
- Cautiously hopeful that it might spur housing development.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Science teacher (New York City, NY)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- This policy doesn't impact me directly as an existing homeowner.
- I hope it helps more educators get into stable housing situations,
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Elementary teacher (Miami, FL)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- I've been watching home prices rise rapidly here which is discouraging.
- This policy could help bridge the gap with rising costs.
- Hopeful that this will enable me to own a home in the community I serve.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
New teacher (Los Angeles, CA)
Age: 24 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- I just started my career and own home isn’t my immediate goal, but it’s a nice possibility.
- This policy could definitely influence my future decisions when I'm ready.
- Encouraging that such support exists for new educators.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Special education teacher (Atlanta, GA)
Age: 38 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- Owning a home has always seemed distant due to our income vs debt ratio.
- This assistance could make the difference for us to finally buy a home.
- Very hopeful and looking forward to exploring this opportunity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Middle school teacher (Boise, ID)
Age: 41 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- It is very challenging to even consider a home when managing as a single parent.
- This policy sounds promising if it can help make owning a home possible.
- Worried about qualification criteria, but cautiously optimistic.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 4 |
History teacher (Denver, CO)
Age: 27 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- We were saving slowly for a home; this would speed up our timeline.
- Important to us to own before starting a family.
- The policy would directly impact our life plans positively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Cost Estimates
Year 1: $4500000000 (Low: $4000000000, High: $5000000000)
Year 2: $4500000000 (Low: $4000000000, High: $5000000000)
Year 3: $4500000000 (Low: $4000000000, High: $5000000000)
Year 5: $4500000000 (Low: $4000000000, High: $5000000000)
Year 10: $4500000000 (Low: $4000000000, High: $5000000000)
Year 100: $4500000000 (Low: $4000000000, High: $5000000000)
Key Considerations
- The proposal relies on cooperation between the Department of Education and housing finance entities to implement the program effectively.
- Ensuring widespread awareness among eligible educators to maximize the program's reach is crucial for success.
- The variability in housing prices across different regions might require adjustable grant sizes to effectively aid educators in high-cost areas.