Heinrich legislation aims to bring homeownership into reach for more educators in New Mexico

U.S. Sen. Martin Heinrich announced his Educator Down Payment Assistance Act during a Monday roundtable conversation with local educators in Downtown Albuquerque.

The legislation is designed to help more educators and school staff in New Mexico achieve homeownership. U.S. Rep. Eric Swalwell (D-Calif.) introduced companion legislation in the House.

Homeownership is out of reach for many educators across the country. The average teacher can afford just 12% of homes for sale within commuting distance of their school. In the majority of school districts in a recent study, starting teachers pay more than 30% of their salary on rent. The same study showed that in the largest metropolitan areas in the U.S., it would take almost 14 years for a teacher to save up to 10% of their income each year to make a 20% down payment. Teacher shortages are more prevalent in western states and in high-poverty communities.

The Educator Down Payment Assistance Act would help educators purchase a home and keep teachers in the communities where they teach.

“Corporations and hedge funds are buying up significant amounts of our rental housing stock, causing rent prices to go through the roof and creating a severe affordable housing shortage. I’m taking action to crack down on corporate greed and help more working people move out of expensive rental housing and into homeownership,” Heinrich said. “My Educator Down Payment Assistance Act will give educators and school staff a shot at owning a home in the communities where they teach — growing the middle class.”

The roundtable discussion was held at Homewise and included Albuquerque teachers and representatives from the Albuquerque Teacher Foundation.

Specifically, the Educator Down Payment Assistance Act would:

• Authorize the Housing and Urban Development (HUD) secretary to provide competitive grants to local governments and local educational agencies, which provide down payment assistance to full-time public-school educators (teachers, principals, specialized instruction support personnel, librarians, counselors) who are first-time home buyers.
• Grants can be up to $25,000 for educators who make up to 120% of the area median income or up to 180% of the area median income in a high-cost area.
• Educators must serve in their position for a total of six years: three years before receiving assistance and three years after receiving assistance, to receive financial assistance.

The legislation is endorsed by the National Education Association, American Federation of Teachers, National Housing Resource Center and Landed.