SB 506

SLS 26RS-1495  ORIGINAL
 2026 Regular Session
 SENATE BILL NO. 506
 BY SENATOR BARTHELEMY
 HOUSING. Creates the Dream Starter Act. (gov sig)
1AN ACT
2 To enact Part 1 of Chapter 3-G of Title 40 of the Louisiana Revised Statutes of 1950, to be
3comprised of R.S. 40:600.121-600.126, relative to the Dream Starter Act; to provide
4relative to homeownership; to provide for the creation of a fund for first-generation
5homebuyers; to provide for administration; to provide for loan forgiveness and for
6eligibility requirements; to provide for annual reporting; to provide relative to
7legislative findings and purposes; to provide relative to the creation of a fund for
8first-generation homebuyers; to provide for definitions; to provide for an effective
9date; and to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11Section 1. Part 1 of Chapter 3-G of Title 40 of the Louisiana Revised Statutes of
12 1950, comprised of R.S. 40:600.121 through 600.126, is hereby enacted to read as follows:
13CHAPTER 15-C. THE DREAM STARTER ACT
14§600.121. Short Title; purpose
15A. This part shall be known and may be cited as the "Dream Starter
16Act."
17B. The purpose of this Part is to create a targeted and accountable
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  words in boldface type and underscored are additions.
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  SB NO. 506
1      program to expand access to first-generation homeownership.
2      §600.122. Legislative findings
3A. The legislature finds as follows:
4(1) Homeownership is a workforce issue and a family wealth issue.
5(2) Expanding sustainable homeownership strengthens workforce
6      stability, local tax bases, and long-term household wealth.
7(3) Residents without generational wealth or prior exposure to
8      homeownership face barriers not captured fully by income screening alone.
9      §600.123. Definitions
10For purposes of this Chapter, the following definitions shall apply:
11(1) "First-time homebuyer" means an individual who has not held an
12      ownership interest in residential real property within the previous three years.
13(2) "First-generation homebuyer"means a first-time homebuyer who has
14      not previously held sole ownership of residential real property and who meets
15      one or more additional criteria established by this Chapter or by rule consistent
16      with this Chapter.
17(3) "Principal residence" means an owner-occupied residential dwelling,
18      including a single-family residence and other eligible owner-occupied residential
19      structures recognized by rule.
20      §600.124. Fund and administration
21There is hereby established in the state treasury the First-Generation
22      Home Buyer Assistance Fund, administered by the Louisiana Housing
23      Corporation. Monies in the fund may consist of legislative appropriations,
24      federal funds, grants, gifts, donations, repayments, interest earnings, and other
25      lawful sources. The corporation may coordinate this program with existing state
26      and local homeownership programs and may partner with private lenders,
27      nonprofit organizations, and housing counselors.
28      §600.125. Assistance and eligibility
29The program shall provide forgivable loans to eligible applicants for
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  words in boldface type and underscored are additions.
 SLS 26RS-1495  ORIGINAL
  SB NO. 506
1down payment assistance, closing costs, mortgage insurance, interest-rate buy-
2downs, and other allowable costs established by rule. Applicants shall complete
3approved home buyer education and financial counseling and shall occupy the
4property as a principal residence for the period and other applicants identified
5in this Chapter.
6§600.126. Accountability and Integrity
7The corporation shall submit an annual report to the legislature on
8participation, geographic distribution, loan performance, and program
9outcomes. The corporation shall implement safeguards including income
10verification,   occupancy      verification,   and    recapture    provisions     for
11noncompliance.
12Section 2. This Act shall become effective upon signature by the governor or, if not
13 signed by the governor, upon expiration of the time for bills to become law without signature
14 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
15 vetoed by the governor and subsequently approved by the legislature, this Act shall become
16 effective on the day following such approval.
  The original instrument and the following digest, which constitutes no part
  of the legislative instrument, were prepared by Senate Legislative Services.
  The keyword, summary, 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)]
  DIGEST
 SB 506 Original  2026 Regular Session  Barthelemy
 Proposed law provides the following legislative findings:
 (1)    Homeownership is a workforce issue and a family wealth issue.
 (2)    Expanding sustainable homeownership strengthens workforce stability, local tax
  bases, and long-term household wealth.
 (3)    Residents without generational wealth or prior exposure to homeownership face
  barriers not captured fully by income screening alone.
 Proposed law provides that the purpose of proposed law is to create a targeted and
 accountable program to expand access to first-generation homeownership.
 Proposed law provides for purposes of proposed law the following definitions shall apply:
 (1)    "First-time homebuyer" means an individual who has not held an ownership interest
  in residential real property within the previous three years.
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  words in boldface type and underscored are additions.
SLS 26RS-1495  ORIGINAL
  SB NO. 506
(2)    "First-generation homebuyer" means a first-time home buyer who has not previously
   held sole ownership of residential real property and who meets one or more
   additional criteria established by proposed law or by rule consistent with proposed
   law.
(3)    "Principal residence" means an owner-occupied residential dwelling, including a
   single-family residence and other eligible owner-occupied residential structures
   recognized by rule.
Proposed law provides for the establishment in the state treasury the First-Generation Home
Buyer Assistance Fund, administered by the Louisiana Housing Corporation. Provides that
monies in the fund may consist of legislative appropriations, federal funds, grants, gifts,
donations, repayments, interest earnings, and other lawful sources. Further provides that the
corporation may coordinate this program with existing state and local homeownership
programs and may partner with private lenders, nonprofit organizations, and housing
counselors.
Proposed law provides that the program shall provide forgivable loans to eligible applicants
for down payment assistance, closing costs, mortgage insurance, interest-rate buy-downs,
and other allowable costs established by rule. Provides that applicants shall complete
approved homebuyer education and financial counseling and shall occupy the property as
a principal residence for the period and other applicants identified in proposed law.
Proposed law provides that the corporation shall submit an annual report to the legislature
on participation, geographic distribution, loan performance, and program outcomes. Further
provides that the corporation shall implement safeguards including income verification,
occupancy verification, and recapture provisions for noncompliance.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 40:600.121 through 600.126)
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   Coding: Words which are struck through are deletions from existing law;
   words in boldface type and underscored are additions.